Self-Realisation, Uncategorized

Worth paying for

When you bring a product or service to the free market, the market decides what it’s worth. If you don’t want to be treated like a commodity (a race to the bottom), there are two paths:

Through scarcity: This is worth extra because there’s not a lot of it or we’re the only one who’s got it.

Through connection: This is worth extra because everyone else is already using it.

A little or a lot.

Few substitutes, either because it’s hard to get or because you’ve got all the good folks already.

We pay extra for something because it’s the only one its kind, because we’re quite thirsty and there’s nowhere else to stop, because we think it will go up in value, because it’s our best option from a limited selection. Right here, right now, you’re the best option. In other words, scarce.

Or…

Because we don’t want to be left out/left behind. It’s worth more because it connects us.

Value is not profit. Widespread and cheap innovations are valuable indeed. Profit, though, often has a different calculus, the creation of things that (some) people think is worth paying extra for.

Reblogged from: here

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Self-Realisation, Uncategorized

Reality-based reality

It’s ever easier to weave our own reality, to find a bubble and to reinforce what we believe with what we hear. We can invent our own rules, create our own theories, fabricate our own ‘facts’.

It turns out, though, that when your reality is based on actual reality, it’s a lot more stable and resilient, because you don’t have to be so vigilant about what you’re going to filter out.

Reblogged from: here

Self-Realisation, Uncategorized

“Summer’s almost over”

When I was a kid, my mom would start saying that in mid-July.

I think she meant well. Summer is a great time to stand back, to chill out, to spend an entire day or a week producing little or nothing and simply breathe.

But she was reminding us that regardless of our internal clock, the real world keeps moving forward, and that maybe this little window of time, one that we’ll never see again, could be a great time to make a contribution, find a connection and explore what might be possible. The ability to create is a rare privilege, and it’s not to be ignored.

If you can make a ruckus, make a ruckus.

Reblogged from: here

Self-Realisation, Uncategorized

Price and satisfaction

You don’t need to read many reviews to realize that the correlation between price and satisfaction isn’t what you might have guessed.

It’s super rare for someone to write, “5 stars. The product wasn’t perfect, it wasn’t exactly what I needed, but it was really cheap, so, good job!”

In fact, things that are free (streaming music or movies, blog posts, speeches, etc.) almost never get bonus happiness because they had the lowest possible price.

And almost as rare is the review that says, “This is terrific, it was magical and solved all my problems, but I’m only giving it three stars because it had a high price.”

If you want to create satisfaction, the two elements are:

Make useful promises

Keep them

Price is unrelated, except for one thing: Charge enough that you can afford to actually keep your promise. The thrill of a low price disappears quickly, but the pain of a broken promise lasts a very long time.

Reblogged from: here

Self-Realisation, Uncategorized

Difficult decisions

These are the decisions that are forced on us, the ones that feel unfair, the ones where there are no seemingly good outcomes.

How to proceed?

Acknowledge that it sucks. That you’d rather not be in this situation. That it’s not what you hoped for. You can return to this step as often as you like, but don’t permit it to have anything to do with the other steps in the process.

Consider the sunk costs. The things you did to get to this point, the hard work and investments you made to have what you had until recently. Now, ignore them. They’re sunk. They have no connection to the decision you need to make.
Outline your options. None of them are as happy as you’d hope. None are perfect. All involve a measure of discomfort. That’s okay, because that’s what’s on offer. Write them out.

Now, consider each option based on the future, not the past. Ignoring the sunk costs, ignoring what you deserve, which of these options offers you the happiest series of future days, weeks and months? Choose that one. Don’t look back. Go.

Reblogged from: here

Self-Realisation, Uncategorized

The exaggeration of small differences without a difference

“What should we do with all the left-handed people?”

“There are far too many people in this organization who wear glasses. It’s hurting our ability to compete.”

Here’s a simple trick: Every time you consider identifying a group to exclude, overlook or fear, every time you consider naming your football team after an ethnic or cultural group, or wonder about how a group makes you feel…

Substitute a label or perhaps a slur that’s been used against a group you belong to instead.

It sounds ridiculous when you say that out loud, doesn’t it?

Reblogged from: here

Uncategorized, Self-Realisation

All other things being equal (simple contribution analysis for pricing)

If you make a product that costs $5 to produce and package, how much should you charge for it?

I don’t know.

But there’s a simple bit of arithmetic you can do to understand sensitivity in pricing.

Should you charge $7 or $9?

Well, if you charge $7, you make $2 a unit.

If you charge $9, you make $4 a unit, or twice as much.

Which means, all other things being equal, you’ll need to sell twice as many at $7 as you’ll need to sell at $9.

It doesn’t feel that way, but it’s true. 100 sold at $9 is more profitable than 180 sold at $7. And to take it a step further, you’ll need to sell 800 at $5.50 to make as much as you would have made at $9. Eight times as many.

No one knows what your demand curve is going to be like, no one is sure what impact your pricing will have on all the other items you sell.

But be honest with yourself about contribution.

Price is a story, it’s a story we tell ourselves and others about what we have to offer. But price is also the path to being able to stay in business.

Reblogged from: here