In response to Tammy

Have you ever encountered a problem where you bought a product that has an inelastic demand? Did you buy it? What was your decision factor for it? 

I have encountered a problem where I had to purchase a product with an inelastic demand.  A couple summers ago my allergies to pollen were very bad.  I wear contacts and the pollen was really starting to affect my eyes.  I would wake up in the morning and one eye would be completely blood shot.  I finally went to my doctors to see if there was a product out there that could help with the allergies.  My doctor told me there was an over the counter eye drop that might do the trick.  I went to the grocery store expecting the item to be more pricey than typical eye drops, but they ended up being $13.99 for the smallest bottle of the drops.  I ended up buying them in the end because I knew I needed them and at this point I would try anything that would work.  They ended up not being a horrible decision and I still have them.  They lasted me far longer than expected.

Have you ever bought a product that has an inelastic demand, but did not work or was not worth the price?

Riding the Momentum Created by a Cheeky Video

http://www.nytimes.com/2013/04/11/business/smallbusiness/dollar-shave-club-from-viral-video-to-real-business.html?ref=advertisingandmarketing

Shave the time Shave the money.

This article is about how a man named Michael Dubin started a business called dollar shave club.  He wanted to meet the needs of men in a convenient sort of way.  He knew they hated having to go shopping for new razor blades and therefore would wait until they were far past usage.  That's how the Dollar Shave Club began.  Michael started out by himself and invested his life savings ($35,000) in this idea.  The website took off and he ended up having to hire more people and really get the company organized.  He knew his strengths and weaknesses and corrected and worked on them.  Now he has a very successful business and may be competing against Gillette.  It's crazy how such a simple concept and idea can go so far.

Would you invest your life savings in an idea you were fairly confident in?  Or would you have to be completely confident?