Suppose that you have to choose 1) $0.18/min card and
2) $0.07/min + $1.00 C/F.
Simple math reveals that the break-even point is about 9
minutes according to the following equation.
$0.18 * min = ($0.07 * min) + $1.00
$0.18 * min - $0.07 * min = $1.00
$0.11 * min = $1.00
min = $1.00 /
$0.11
min = about 9
minutes.
So at first look, the answer to which one is better seems to be
fairly easy. It depends on your conversation style.
- If you are sure that you always talk in a single call more than 9
minutes, then go for 2)
- If you are sure you always talk in a single call less than 9
minutes, then go for 1)
- If your conversation length fluctuates (for example, some
times you talk 3 minutes and sometimes you talk about 20 minutes), buy both 1)
and 2) and use different calling card in different occasions. When you
talk longer, use 2); when you talk short, use 1).
However, some people are more risk aversive than others. If
you are the kind of person who are risk-aversive, you may want to buy 1) $0.18/min
card. If you are willing to take a risk, you may want to buy 2) $0.07/min +$1.00.
What would you do? It's your choice. No one can force
you to choose one. As for me, I fall into the 3rd category. I can guess (even
if it is vague) when I will talk short, medium, and longer than usual. Therefore, I
can decide which one would be better in each case. Of course I am not 100%
accurate. Sometimes I talk longer than I planned. other times I end up talking
shorter than I expected. But still, I can save more by having a plan rather than
having no plan at all.
When it comes to estimating on average how long one talks in a
single call, people tend to underestimate the time they spend.
One of the reason can be explained by a simple psychology. Are you totally relax and
easy-going when you call someone in Korea just as you would when you call some one in your
neighbor? Not likely. Why? It is because your subconscious mind keeps
telling you that international call is expensive and you would better talk short, save
money, and saving money is desirable behavior. Hence, without your knowing, you
underestimate your average calling time. What is your average calling time? To
accurately measure it, have a stop watch or any type of watch near you, and write down the
time when you start conversation, write down the finishing time right after the
call. Repeat this for the next 10 telephone calls. That should be
enough. To make your life easier, look at you past long distance telephone
bills. You will be amazed by the findings. Most of
you would find that your mental (psychological) clock is wrong. You may talk longer
than you think.
A few month ago when I was still using an expensive long distance
service. I made two calls to my professor in Korea in different time interval.
In each case, I thought that I spent at most 5 to 7 minutes. When a telephone bill
arrived, it showed that the actual time spent was 12 minutes and 15 minutes,
respectively. This prompted me to examine several bills that I received from my long
distance carrier. In most cases, my wife and I spend well over 10 minutes in a
single call to Korea. In one extreme case, my wife talked for 56 minutes. I am glad that I do not use the long distance company any longer. In
fact, I unsubscribed the long distance company and use both type 1) and 2) calling cards
depending on usage expectation. |
