I like The New York Times. I consider the Times an "affordable luxury." In my part of the world the Times costs $1.50 a copy. That's about three times (3x) the cost of the local paper. I consider the Times worth the premium because the articles are well-written and well-researched. And the content is well-edited. If you were so inclined you could say it is a well-designed and well-engineered newspaper.
So I was surprised when a review of the new Porsche in the New York Times hinted that paying $138,000 for a new cabriolet was a bit excessive. This price is only about 3 x the price of an entry level luxury vehicle, about the same relative premium the Times charges.
This led me to wonder how an observer decides when the price of something is excessive. I think we base our judgments on our own experience rather than the perspective of the intended purchaser.
A recent Elite Traveler survey reported that private jets owners had spent over $400,000 on hotels, resorts and spas in the ensuing year. There are at least two ways to view that number.
One is that the Elite Traveler reader spends approximately 8-10 times on vacations what the average household spends in a year on everything. That could seem a bit excessive.
Another view is that surveyed households total living expenses are about the same percentage of household income as the average household's. (In fact they may be a bit less.) That could seem in line. And buying a Porsche instead of a Bentley Continental could be seen as a modest purchase.
In fact, so would buying the Times.
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