Lets talk math (dollars!)

[Naughty Thoughts]

Let's say there is a service that has been around for a few years. Let's say that at the moment, you pay $400 for that service but in 1995 the service was $250. Nearly double! Major rip off...

Currently, the mean income is $72,800 per year. This figure isn't accurate because there are a handful of mega-salary earners who push the average up. So let's whack 25% off for no reason other than being arbitrary. We'll call the annual adjusted mean income $54,600 (and ignore little things like tax, expenses, etc). That'd make the mean adjusted weekly income $1,050.

So this service is 38% of the weekly income.

In 1995, the mean income (again, including the top earners) was $28,494. Again, whack 25% off the top to bring it down to $21,370 (and 50 cents, but I'm rounding). This would make the adjusted mean weekly income in 1995 to be $410 (and change). This would make the 1995 cost of the service 60.8% of the weekly income.

Bam! 20% discount. You just need to do the math.

Incidentally, using the Reserve bank's online inflation calculator, something that was $250 in 1995 would be $407.98 in 2014 (2015 isn't an option yet). So there's that.

Okay, I'll put the math homework away now.

 

[JustMe]

And the point your trying to make is.... ?

( Before we can discuss the many missing factors - lots of changes in last 20 years - in a point you might be possibly wanting to make - unless you're just showing you can handle percentages efficiently)

 

[Spit.mcphee]

I love statistics.
Lets say 5% of vehicle occupant fatalities are not wearing seatbelts. So thats 1:20.
Therefore you are 19 times more likely to die in a car accident if you are wearing a seatbelt.
Not saying its right, but figures never lie. Pfft.

 

[Ranjeeh]

The Reserve calculator also does not cater for the effect of factors such as supply and demand, so is irrelevant when it is applied to the services industry.

 

[Naughty Thoughts]

No point, just musing out loud. Good to flex the old math muscles to stop them atrophying.

 

[Trickortreat]

But the girls were 20 yrs younger in 1995...