Not loosing is better than winning

Last week I was working in Vienna from my hotel room. To hook up on the Internet my only option was to use a 24h wifi-connection from T-Mobile for €16. So I did. I spent an hour by the computer before breakfast. When I returned I couldn't log in. So I tried to open from the original login page, only to discover a new €16 period kicked in - By accidentally having pressed one single button I was now paying €32 for 26 hours of airtime.

I was furious. I spent 20 minutes writing and trying to send an e-mail to customer support. It didn't go trough. During the lunch I was telling everyone I met about the story, just to get it off my heart.

Coming back to Gothenburg I checked the mail. There I discovered a letter from an English book distributor that I had asked to quit the distribution of a 4 years old fashion book my wife has written. They finally had. They also enclosed a check of £83 which was totally unexpected. In fact I thought we had to pay up our selves as the sales during the last year had been exceeded by the costs for storage. But obviously they owed us.

I shrugged my shoulders, my wife did the same thing. I don't think we even smiled. Sure it's great to get £83 but it's not really changing your life. Not even your day.

So, what's the catch with these two stories?

Well, to loose money, especially if it doesn't lead to anything, that hurts. Winning money is great but as long as it's not a substational amount it doesn't really engage us. What's substational is however depending on the context. Finding £83 on the street can make us happy an hour or two. Another £83 as a part of our everyday business is close to nothing.

Yesterday, this year's limit for new heating systems subsidies in Sweden was reached. Those who wants a €1,500 tax break for changing to renewable energy solutions now has to wait to the 1st of January 2007 to buy it, when the next round of €300 million is to be spent. Of an investment that totals to €15,000 and is financed by your house loan with record low interest rate,  €1,500 is in fact not that much. Actually you will save more money in 10 months if you go from oil to wood pellets, which means there is no reason to wait. Research I have made also shows that people that have got the same kind of tax breaks before would have made the investment anyway.

But if you invest now, before 1st of January 2007, you will loose €1,500.  A €1,500 you actually are entitled to.

And loosing - that hurts.