Archive for the ‘Be logical’ Category

Craig: Change It.

In Be logical, Create, Human behavior, Relationships, Take action on 09/05/2012 at 10:00 am

Craig and I met in an airport. We were both waiting to catch a flight and both remarked how lousy the potato chips were in the Continental lounge. Ever since then, we’ve recognized that we’re pretty much twins from another mother (and country – he’s Canadian) – we’re both ENTPs, we both own food businesses, we have similar outlooks on how to raise our children and we both love talking for the sake of talking.

In an IM conversation this morning, I told Craig that I appreciated his problem-solving ability and quick-on-his-feet nature. He is so good about thinking clearly, being innovative and methodical with his approaches to problems, and offering creative solutions to them on the spot. His ability to apply logic and objectivity to any situation is something I admire in him – greatly.

Then, he said very matter-of-factly, “Well, the way I see things, you either need to find out how to be tolerant of something, or change it.”

Thanks for the chat, Craig!

Dan: Everything Is Relative.

In Be logical, Business, Human behavior, Marketing, Strategy on 06/26/2012 at 6:06 pm

I met Dan Ariely at The Market Research Technology Event in Las Vegas. I spoke on the last day at the last possible time slot. Dan spoke on the best day at the best time slot. So basically, he is seriously legit. He’s also a behavioral economics professor at Duke and has a ton of fascinating studies on human behavior and consumer habits.

In part of his presentation, he discussed relative pricing.

Which subscription plan would you choose?

You (and 68% of people) would probably pick the $59 subscription, because it’s cheaper and gives you what you think you need. Right?

Okay. Now imagine that you had seen this offer instead of the first one:

With this scenario, you (and 84% of people) are probably thinking, “Oh, MAN. I could get Print + Web for $125, when print on its own is $125? What a deal! I’m totally going with the $125 option.”

And just like that, the Economist just doubled their revenue, just by throwing in a martyr price point.

From Dan’s book:

“Most people don’t know what they want unless they see it in context . . . We don’t know what kind of speaker system we like – until we hear a set of speakers that sounds better than the previous one . . . Everything is relative, and that’s the point.”

Frickin’ brilliant.

Dan: Everything is a trade off.

In Be logical on 03/27/2011 at 3:16 pm

I’ve known Dan for what feels like years. He’s a hedge fund analyst in Chicago, University of Chicago MBA grad and overall nerd.

We went to lunch a few weeks ago and he was telling me how he and his wife are thinking about moving their family to a bigger house farther away from the city.

Do we get a bigger house, but in a suburb we might not like as much?
Do we get a smaller house so we won’t be house poor and can actually go on vacations?
Do we go to a city that has a weaker school system, but then have to send our kids to private schools?
Do we stay closer to the city so I have a shorter commute, but pay more for the house?

When thinking about making a life-changing decision, it’s good to be rational and realize that everything has its up and downsides, and acknowledge that no matter what, there will always be a trade off.

And the best part? Knowing this before going into making a decision makes making that decision that much easier.

Dan the hedge fund man, thanks for keeping me grounded.