Tag Archive for: Influence PEOPLE

Don’t be so Quick to Restock that Shelf

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My daughter Abigail’s good friend, Maxie, used to work at a bakery in our hometown of Westerville.  One Saturday morning Abigail and I stopped by to say hello and get a sugary treat after having coffee. I noticed Maxie was busy replacing donuts and making sure the pastry trays were completely full. Unfortunately, it was a bad persuasion move on her part.

I asked Maxie why she was so quick to restock the trays after a few donuts or pastries were purchased. She said the bakery owner liked the trays to be full and he believed they looked better that way. I told her that approach is actually working against the bakery making more sales. Let me explain.

Two principles of influence were potentially at work in the bakery if the situation was handled correctly. The first was consensus – we look to others to see how we should behave in certain situations. The second principle was scarcity – we value things more when they’re rare or diminishing.

When people walk into a bakery and see a tray with very few donuts left, consensus kicks in as the first thought is – those must be good donuts because everyone seems to be buying them. Next comes scarcity – with so few donuts left, if I don’t get one soon I might not be able to get one. Both principles become a huge draw do make a purchase!

I’m pretty confident the owner of that bakery has many things for employees to do other than constantly restocking the shelves. One big thing would be having them engage customers to share what items are “selling like hotcakes.”

Have you ever been to a store where you obviously needed help but employees seem more concerned with stocking the shelves? That’s frustrating. Some of that may be due to their hesitancy to interact with people but I’m sure some of the pressure comes from managers who believe fully stocked shelves are a high priority for the store. Not smart if you want to sell more goods.

Think about where you work. Are there things you have that people actually see? If so, don’t be so quick to “restock the shelves” because doing so reduces the impact of consensus and scarcity. Rather, manage the process so you convey what other people are buying and get your customer to “act now” so they don’t lose an opportunity. If you’re worried about employees standing around, teach them how positively engage customers in such a way that customers enjoy the buying experience and keep coming back.

What’s Your Why?

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Why? That’s a deep, powerful question that can apply to almost anything. Kids ask why the sky is blue. Sports fans ask why the coach called a certain play. Citizens ask why politicians make the choices they do. You get the point. I’d like to focus the question on you. What’s your why? Or put another way, why do you do what you do?

I’m intrigued by the question of why having reread Simon Sinek’s book Start with Why. I encourage you to take a look at Simon sharing some thoughts on this in one of his Ted talk presentations.

Sinek builds a case that most companies lose sight of this important concept but great companies know their why and it becomes their culture. Apple, Costco, Southwest Air and Harley Davidson are a few of the great companies he refers to in the book. His perspective reminded me of Steven Covey’s idea of a personal mission statement. Covey’s idea applies to individuals because too often people go through life not knowing why they do what they do. This post isn’t about the value of a personal mission statement but if you’d like to learn more about that, read this article.

With Influence PEOPLE, my why is to help people achieve professional success and personal happiness. When it comes to professional success much of that depends on getting others to say yes to you.

That yes could be tied to a new product, procedure, strategy or any number of other initiatives in which people need to be onboard. Whatever it may be, business leaders, managers and salespeople need to get people doing what they need them to do.

On a personal level, I’m a firm believer that your home life will be much more peaceful and happy if family members willingly do what you want. Wouldn’t it be nice if your kids did their homework or chores with less resistance? Wouldn’t it be great if your spouse more willingly did what you asked? Both could lead to less stress and more happiness.

I believe professional success and personal happiness can be achieved with a lot less effort than you might imagine. If you understand how people typically think and behave and you’re willing to adjust your communication accordingly you’ll move more people to voluntarily do what you want. A big part of that communication change comes by ethically and correctly using the principles of influence.

The principles of influence are psychological triggers that are scientifically proven to move more people to a yes response. Think of it this way, if you knew the best way to hear “Yes” more consistently, wouldn’t you communicate that way more often? It would be foolish not to.

When I speak on this topic the word audience members use most often to describe me is passionate. They can tell I passionately believe what I’m saying. And I do because I’ve seen it work firsthand at home and the office. I’ve also heard from others. Here are a couple of examples:

“Brian Ahearn’s communication and teaching of Dr. Cialdini’s principles of persuasion into business applications specifically for our industry were extremely relevant and applicable in both of my work and personal life.”
– Greg Wilkerson, Sr. Vice President, Frost Insurance

“The class was so powerful for me personally, that it has extended past any particular work situation or sales situation. It has influenced almost every aspect of my life.”
– Christian Fanetti, Sr., Vice President, Consumers First Insurance

So let’s circle back to you. What is your why when you head to work each day? If it’s just a paycheck you’ll never put as much time and effort into your work as you would if you passionately believed what you do makes a difference.

Even if you don’t love the daily grind, can you see how the end results of your efforts and your organization make a difference for others?

I can’t answer your why for you. Nobody can. But taking time to really reflect might make the difference for you. Wouldn’t it be great to go to work each day with a little more energy, excitement and passion? It’s possible if you know your why and believe in it.

Why Thankfulness Matters

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This week people across America will be celebrating Thanksgiving. While this holiday has its origins going back to the 1600s with the Pilgrims it wasn’t until Abraham Lincoln that we formally acknowledged the last Thursday in November as the day of celebration. Franklin D. Roosevelt altered that in 1939 when there were five Thursdays in November. FDR declared the fourth Thursday to be the official day and the Senate ratified his decision in 1942, officially making the fourth Thursday Thanksgiving in the United States.

The truth is we should be thankful every day and multiple times each day because there’s so much to be grateful for. If

Viktor Frankl could find reason to give thanks while held prisoner in Nazi concentration camps then we can all find reasons to be thankful each day. Unfortunately it’s human nature to take things for granted so it’s not until something is missing that we appreciate it more. That’s the principle of scarcity in action.

Speaking of being thankful, here’s an example of the wrong way to go about it. Many years ago a colleague needed help with something. What was asked not only required my time but the time of several others as well. It forced us to put things on hold for other people but nonetheless we “stopped the presses” and accommodated the request. This person got what they needed and went about their business the next day. What stood out to me was this – never did they thank us in person, by phone, or in writing. I remember thinking, “I don’t work for thanks. I get paid well to do my job,” but I also knew in my heart I wouldn’t extend myself for that person again and I certainly wouldn’t ask others to do so.

I don’t think I’m different than the average person in this regard. When I go out of my way to help someone – even when paid – if I don’t get some acknowledgment of appreciation I know I won’t try as hard the next time. Contrast that with people who offer genuine thanks and appreciation. I bet most of you would go above and beyond for such people.

Giving thanks is a form of reciprocity. This principle of influence tells us people feel obligated to give back to those who first give to them. According to the French social psychologist Marcel Mauss, every human society teaches its people the way of reciprocity. We see this as we raise our children because one of the first things we teach them to say is, “Thank you,” when someone has done something for them.

Because we’re all brought up in the way of reciprocity most people are somewhat offended when the person they helped cannot take a moment to say thanks. Beyond offense, people are less willing to help thankless people as time goes by. It’s a natural human response.

Here’s why thankfulness matters. When you do express sincere appreciation people are more likely to help you – and others – in the future. Think about it; you help someone, they express gratitude, and you feel good about the action you took. You’re naturally more likely to repeat behaviors in the future that made you feel good about yourself. And the person you helped is more likely to help others too. That’s called “paying it forward.”

As we approach the day that commemorates giving thanks pause to reflect and see if you’re someone who regularly gives thanks when someone does something for you. If you don’t, or don’t as regularly as you should, make a commitment to start. I think you’ll be amazed at how people respond to you and you’ll be thankful you changed your ways.

 

V = WIG/P … What?

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Don’t worry; this post isn’t about algebra or calculus. This week we’re going to look into the value proposition and how salespeople can use the principles of influence to make sure their product or service offering shines.

First, let me say my introduction to the value proposition came nearly 20 years ago when John Petrucci joined State Auto. I learned more about sales from John in his first year with the company than I had in my previous 10 years in the industry. One concept he shared with me, and others throughout the company, was the following formula for the value proposition:

V = WIG/P

Value equals What I Get divided by Price

Let me illustrate. Let’s say currently you can buy 12 widgets for $6. That means the value of each widget is 2. At some point in the future, if you can get 18 widgets for $6 then the value of each widget is 3. Or, maybe you can get still get 12 widgets but now they’re only $3, which makes the value of each widget 4. In each case the value of the widget has gone up which is a better deal for you!

Conversely, if you can only get 12 widgets but the price has gone up to $8, then the value of each widget is only 1.50. Perhaps the price stayed at $6 but now you can only get six widgets. The value you get from widgets has dropped to 1. In both cases, not as good a deal as it once was.

Bottom line; if you can get more and pay the same OR if you get the same but pay less, you’ve received more value. On the flip side, if you get the same and pay more OR get less but pay the same as you always have, then you’ve received less value.

Oh if life were only so easy as a formula! If it were, we would just plug in the numbers and always make the best choice. But here’s the problem – rarely do things play out in real life like they do in the classroom or on paper. Most of the time what we’re offering, be it a product or service, has many components that become hard to value in a formula. Here’s an example from the insurance industry. Many people assume one automobile insurance policy is like another. To some degree that’s true but here are factors that may account for much of the price difference:

  • Coverages – Not all policies have the same coverages and not all have the same coverage limits. More coverage or higher limits means paying more.
  • Bells and whistles – Many policies have extra coverages that are intended to make the policy more valuable. While these may be free (you can’t remove them and save money) they add value to the policy.
  • Claims – Not all companies handle claims the same. Those with better claims service usually charge more because they have more and better staff.

As you can see, it becomes hard to measure value when there are so many factors involved. However, if you’re in sales you’d better know how your product or service is different from your competitors. Your offering may not appeal to everyone but you may have a niche market you go after. That usually makes highlighting value easier.

So how you do use some of the principles of influence to highlight value? Here are three easy-to-incorporate examples.

Authority – People look to experts for guidance when they’re not sure what to do. Can you point to unbiased sources that show the superiority of your product or service in certain areas? Can you fall back on your expertise (years in the business, training, breadth of experience) to make a potential customer feel more comfortable?

Consensus – Humans are essentially pack animals. The vast majority of people feel better knowing what others have said about a product. Can you incorporate information about what the masses think about your product? Is there an opportunity to narrow the focus to people just like the person you’re trying to sell to?

Scarcity – People are much more motivated by what they may lose versus what they might gain. Talking about saving $100 (if your product is less expensive) will not be as effective as telling the prospective customer what they’ll will lose out on by overpaying.

Most people only have a vague idea about the value of what they’re getting even when they do a little research. For more on that just go back and reread my article on buying something as simple as an iron. Do we really know the value of the work done on our car? How about buying a lawnmower? Hiring a personal trainer? The list could go on and on with products or services where we can only “ballpark” to get an estimate of value.

A good salesperson will ask lots of questions to identify someone’s needs. From there they’ll begin to point people to products or services that best meet those needs. While doing so they will look for ways to ethically incorporate authority, consensus and scarcity to the degree that each is available. Doing so will help highlight the value of their offer and lead to a better buying experience for the customer.

So remember, even if you’re not a math whiz, V= WIG/P is a formula you want to know cold if you hope to succeed in sales.

Practice Doesn’t Make Perfect, Perfect Practice Makes Perfect

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You’ve probably heard the old expression, “Practice makes perfect.” The message is intended to convey that you won’t improve at something without practice. However, the reality is this – not any old practice will do. For example, who will ultimately perform better in each of the following scenarios?

  • The golfer who hits a large bucket of balls with a variety of clubs or the golfer who picks one or two clubs and works on a few specific things?
  • The basketball player who hurriedly tosses up 50 free throws at the end of practice or the player who takes his time during his 50 attempts because he tries to correct mistakes after missing free throws?
  • The businessperson who participates in training or the businessperson who repeatedly practices on their own certain skills learned in training?
  • In each case I’m guessing you’d agree the second person would be more successful in each of these scenarios.

In the golf example you’re game will improve much more if you work on a few specifics, master them, then move on to other areas of your game.

A basketball player who focuses on what went wrong and actively corrects the mistakes is less likely to repeat them at the free throw line.

The businessperson who takes time to practice certain skills learned at a workshop should improve upon those skills much more than the person who doesn’t do anything after the training.

What we’re talking about here is a concept known as “deep practice.” Simply practicing, repeating the same thing over and over, could actually hinder you if you happen to be doing something incorrectly. Practicing incorrectly can easily lead to ingraining bad habits!

If you want to improve at something you have to practice it correctly. In other words, perfect practice makes perfect.

According to Daniel Coy, author of The Talent Code and The Little Book of Talent, deep practice is hard and can be exhausting. But there’s good news – you can accomplish more with less when you practice deeply.

But don’t take that last statement to mean a little hard work is all it takes. People who master their chosen field usually put in more than 10,000 hours and their time practicing far exceeds the actual time in competition. For example, Jerry Rice is estimated to have practiced 20,000 hours (20 years x 50 week/year x 20 hours a week) and his playing time was about 150 hours (300 games x ½ [assuming the offense was in the field ½ the time]). Think about that for a moment; 20,000 hours of preparation for 150 hours of game time. That’s more than 133 hours of preparation for every hour of playing time.

After college I was a competitive bodybuilder for several years. I would routinely spend at least two hours a day in the gym every day. Conservatively I’d have 250 hours of gym time for 30 minutes of competition on stage. Would you be willing to devote 100, 200, or 500 hours of prep time to get ready for an event?

In business the model is flipped because we spend so much time at the office, in meetings, on sales calls, etc., that we can’t afford to spend as much time in preparation. That means we need to be as efficient as possible with our time. Here are some things you can do:

  • Assess what went well and what didn’t. After a big meeting or sales call assess what went well and what could be improved on.
  • Take time to practice what can be practiced and/or change what needs to be changed next time.
  • Use drive time to practice. A few weeks ago I had a three-hour drive from Indianapolis to Columbus and I used almost two hours of the drive to practice parts of an upcoming presentation. I practiced so much that people noticed my voice was hoarse when I got back to the office. It was much better use of my time than talk radio, music or daydreaming.
  • Focus on specifics. As you go into a meeting, sales call, or presentation focus on certain things you want to improve. Just one or two things are enough. Ask someone to keep an eye out for those things and get some feedback.
  • Be playful. Almost every interaction with someone is a chance to do playful practice, especially when there’s not a lot on the line. I do this quite often in an exaggerated way and people who know me know what I’m doing so we usually get a good laugh.

Let’s not fool ourselves; just because we do something over and over doesn’t mean we’ll necessarily get better at it. It’s very hard for someone to get good at golf when all they do is play. If the pros practice then we need to all the more. The same logic applies in business; just because we’ve done something for a long time doesn’t mean we’re good at it. So remember, perfect practice makes perfect.

Sometimes It’s All about What You SAID

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I grew up playing football. From the time I was eight years old until I was 18, every year was all about football. Unfortunately, I wasn’t naturally big, strong, or fast. As a junior in high school, I played outside linebacker at a strapping five foot nine inches tall and a weight of 155 lbs.—soaking wet.

Then something happened between my junior and senior year. I was taught how to lift weights the right way by some powerlifters, and the difference was amazing! I put on 20 lbs. in just three months, and by the time the next season rolled around, I was 30 lbs. heavier than the year before. It made a HUGE difference on the field.

Something my teammates and I were taught during those lifting sessions was the SAID principle. SAID stands for Specific Adaptation to Imposed Demands. In layman’s terms, it simply means this: you get what you train for. Here are some examples:

  • If you lift heavy weights for low reps, you get bigger and much stronger.

  • If you lift lighter weights for higher reps, you get a little stronger and more defined (cut).

  • If you practice running in short, hard bursts, your ability to sprint will get better.

  • If you run at an easy pace for a long time, you tend to become a better distance runner.

It’s obvious that running long, slow distances won’t help you get really fast in the 40-yard dash. And lifting lighter weights will never make you as big and strong as someone who lifts massive amounts of weight. You get what you train for.

This philosophy applies to business skills as well. When you work on a particular skill, you tend to improve that skill. However, if you don’t work on the skills required in your business, you’ll only improve marginally.

For example, walking gives some physical benefit—but nothing like running distance or sprinting. So why do we think that just because we use our ears every day, we’re getting better at listening? Just because we ask people questions on a daily basis, does that necessarily make us good at questioning?

Persuasion is an everyday skill. According to Aristotle, persuasion is the art of getting someone to do something they wouldn’t ordinarily do if you didn’t ask. Each of us asks others to do things every day—but does that make us good at the skill of persuasion?

Having studied the topic for more than a dozen years and worked with countless people over that time, I can tell you with certainty: it doesn’t make you better.

People and companies—some very smart people and very good companies—make basic mistakes routinely. In nearly every case, small changes could make big differences.

For example, take a look at the screenshot from my Starbucks app. Notice anything?

In psychology, there’s something we call the contrast phenomenon. What you experience first will impact what you experience next. When Starbucks puts “No Tip” first, then $0.50, they make $1.00 and $2.00 seem much bigger by comparison. I have no doubt that if they reversed the order, the average tip would be much higher. After debating about a $2.00 tip, $1.00 doesn’t seem like too much. Not everyone will give more, but enough will that baristas would do much better after giving their friendly service.

I’ve seen this same mistake made by organizations raising money via donations. Starting with $5 on the donation form and then going to $10, $25, $50, etc., will never be as effective as starting with the highest number and then going lower.

I could share many more examples, but I think you get the picture. As I stated in the opening: doing something routinely doesn’t necessarily make you better at it. Taking time to focus on a skill—like a golfer who practices consistently—will help you improve much faster and more efficiently.

This is why everyone should take time to learn about the psychology of persuasion. Doing so will help your professional success and personal happiness.

Did you hear what I SAID?

Halo Good Looking! Are You as Talented as I Think?

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Have you heard of the “halo effect?” For those with teens, I’m not talking about the Xbox game your kids might be playing where they seek to destroy aliens. The halo effect can be more insidious than the game when it leads us to harmful decisions.

Let me describe the halo effect for you:

  • You meet a tall, broad shouldered man, the new boss, and instantly assume he’s a good leader.
  • You’re interviewing a former college athlete, someone who set records at your alma mater, and you think her training habits will translate into a successful business career.
  • You’re introduced to someone and learn they have the IQ of a genius, which leads you to believe he would be a great asset to your organization.

Do you get the picture? The halo effect leads us to make all kinds of assumptions about someone based on a few attributes that may have no bearing on the skills, abilities, or talents needed for the current role.

Tall men are looked upon as being better leaders. That’s part of the reason taller men usually win political elections.

Sure, we can think of exceptions, like Napoleon, but when we do we attribute their success to something like “the little man syndrome.” We assume they had to try harder because they were smaller and wanted to prove everybody wrong. Couldn’t they have simply had the right skills to lead?

Good looking people tend to get elected more, hired more, make more money and get lighter sentences when they commit crimes.

Like much of our thinking, we’re unaware of how our biases affect our decision making. After all, no one would say they voted for someone because of their looks, or paid them more money, or gave them a lighter sentence. But the statistics tell another story.

In the Bible there’s a story about how the Israelites clamored for a king and defaulted to someone who looked the part rather than someone who would have been a good king based on merit. In 1 Samuel 9:2 we read, “He (Kish) had a son whose name was Saul, a choice and handsome man, and there was not a more handsome person than he among the sons of Israel; from his shoulders and up he was taller than any of the people.” Saul ended up being a poor king and was replaced by David, someone who didn’t look the part but was the greatest Israelite king.

You might be thinking about all the athletes who’ve done well in careers after their competitive days are over. There are many examples but that’s partly due to the fact that we seldom hear about the failures or those who only do as well as the average person. When we do hear about the failures, we just assume they were the exceptions, and we would never be so foolish.

It’s often assumed the smartest people, those with the best grades and highest IQs, will do the best in life. In recent decades something called emotional intelligence (EQ) has challenged the notion that high IQs is what it takes. Studies show those with higher EQs do better than those with high IQs. Still, old habits and legends die hard.

Certainly, tall people can be good leaders, athletes can take what they’ve learned through competition to succeed in business, and sometimes people with high IQs turn out to be wildly successful.

The point of this week’s post is to alert you to how many times irrelevant factors play a big role in our decision making process without us being aware. My advice would simply be this – question your assumptions. Perhaps you’ll find your initial impression was correct, but you might also realize you’re being swayed by factors that have nothing to do with what you’re really trying to assess.

Brian Ahearn, CMCT

Influencers from Around the World – Paradox of “The Bridge of Life”

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Hoh Kim has been a guest blogger for Influence PEOPLE since I began the Influencers from Around the World series more than five years ago. I met Hoh when we went through the Cialdini certification training together. At the time Hoh had his MA but it’s with great pleasure I can now say Hoh now has his doctorate, as well! Hoh received his Ph.D. in

Culture Technology from Korea Advanced Institute of Science and Technology; his dissertation title was “Psychological and neural influences of public apology on audience responses in corporate crisis situations.” I know you’ll enjoy his post on the paradox of “the bridge of life.”

Brian Ahearn, CMCT®
Chief Influence Officer
influencePEOPLE 
Helping You Learn to Hear “Yes”.

 

Paradox of “The Bridge of Life”

On September 1, 2015, Seoul city metropolitan government announced that they would discontinue “The Bridge of Life” which was established in August 2012 by cooperation between Seoul city metropolitan government and Samsung Life Insurance. Cheil Communication, the largest advertising agency in Korea, a subsidiary firm of Samsung Group, developed the idea. The idea and project received positive spotlights from both local and international media. “The bridge of life” received more than 30 international awards including Titanium Lion winner at Cannes Lions and Clio Awards in 2013.

What is the bridge of life? It is an interactive storytelling bridge and as you walk across the bridge, the bridge talks to you. Click here to watch a short video.

For your information, Korea has unfortunately been the number one country among OECD (The Organization for Economic Co-operation and Development) in terms of the number of suicides for more than a decade.

Mapo Bridge is one of the 31 bridges crossing Han River in Seoul, and it has a notorious nickname — “the bridge for suicide” — as more people tried suicide on this bridge than any other in Seoul. That’s why city government made the bridge of life. What were the results? In 2012, 15 people “tried” suicide on the Mapo Bridge. Then, “the bridge of life” was established. Surprisingly 93 people “tried” suicide on the bridge. There is an argument. In 2012, 60% of the people who “tried” suicide on the Mapo Bridge were saved, but in 2013, 94.6% (85 out of 93) was saved from the suicide attempts. In 2014, 184 people “tried” suicide on the bridge (I don’t have the number of people who survived in that year). Regardless, the survival rate, it was clear that many more people tried suicide in “the bridge of life.”

What was the problem? A possible explanation can come from “side effects” of social proof principle. When Dr. Cialdini explained the principle of social proof – i.e., people follow the lead of many/similar others – he warned to be careful not to use it with negative information. Even though I have lived in Seoul for more than 40 years, I came to know the fact that more people tried suicide on the Mapo Bridge than any other bridge in Seoul through the “Bridge of Life” campaign. I think the side effect of social proof influenced the surge of suicide trials on the bridge. However, to be honest, when I first heard about the campaign around 2013 from TV News, I thought the idea of the bridge was fascinating, and could not predict the side effect of the social proof principle.

What are the lessons out of it? Two things. First, when we design a campaign, we have to look at closely at whether there are any side effects of the campaign. How can we do that? The “red team” from the American soap opera “Newsroom” might help. Red team is a sort of Devil’s advocate. Red team intentionally attacks an idea so that we can cross check whether there is any downside of a project.

Second, the Bridge of Life project was a persuasion project where the campaign tried to influence to reduce actual suicide and suicide attempts. When there is any persuasion project, the best reference would be six principles of influence by Dr. Cialdini as he reviewed influence psychology of more than 60 years and found six universal principles.

By applying and checking against the principles, you can create a better persuasion campaign and avoid any pitfall of the campaign. When I first heard about the Bridge of Life, I should have carefully thought about the campaign against the principles, both their applications and side effects.

Hoh Kim, Ph.D.
Founder, Head Coach & Lead
Facilitator, THE LAB h
E-mail: hoh.kim@thelabh.com
Home: www.THELABh.com

Hoh

Will the Price of Cubans Rise or Fall?

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There’s a Seinfeld episode in which Kramer orders some Cubans. Jerry thinks he’s ordering cigars but Kramer actually brought three Cuban men over so they could roll cigars for him. He didn’t get cigars because they were illegal.

When America cut ties with Cuba after Fidel Castro took over, it became illegal to do business with Cuba. Whenever something is banned or difficult to get all of a sudden people want the banned or difficult to get things even more. That’s the principle of scarcity at work on the human psyche.

Here are just a few examples.

There was a point in time when you could only get Coors beer west of the Rockies. As a kid I remember my dad and his brothers talking about how good Coors was when they could get it. None of them drinks Coors now.

Yuengling is another example of a beer that was hard to come by, at least in Ohio, until recent years. I recall traveling with a friend who made it a point to stop at a conveience store in West Virginia just to buy a case of Yuengling.

Twinkies started flying off the shelf when it was announced Hostess was discontinuing the cake-filled treat.

Back in 2001, Oldsmobile exceeded it sales goal by a higher percentage than better-known brands such as BMW, Kia, Porsche, and many others, when it was announced the car line was being discontinued.

I’m a Scotch lover and asked an expert at a tasting event his thoughts on aged Scotch (25 years and older). He said he tries a glass but doesn’t buy a bottle because age doesn’t necessarily mean better taste. He said the reason the price is so much higher for aged Scotch is just because there’s less of it.

Why do we naturally feel compelled to take advantage of scarce resources or opportunities? From Influence Science and Practice:

“One prominent theory accounts for the primacy of loss over gain in evolutionary terms. If one has enough to survive, an increase in resources will be helpful but a decrease in those same resources could be fatal. Consequently, it would be adaptive to be especially sensitive to the possibility of loss.” (Haselton & Nettle, 2006)

Now here’s the interesting thing – once something is no longer scarce we don’t want it as much. There’s a good chance we’ll see this play out with Cuban cigars. Now that relations between the U.S. and Cuba have been normalized it’s a sure bet Cuban cigars will be easier to get. In all likelihood there will be a rush to get them when they initially hit the store shelves. However, as they become more commonplace it’s likely people won’t value them as much.

Humans are not always predictable so there’s no guarantee I’m correct in my assessment of what will happen with Cuban cigar prices. Only time will tell. However, given how scarcity works on the human mind and surveying similar scenarios from the past, if I were a betting man I’d bet on a price fall shortly after Cubans – cigars that is – hit the U.S. market.

Jerry Seinfeld: Following the Lead of an Expert

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I’m a big Seinfeld fan. No matter how many times I’ve seen an episode I always laugh. I’ve watched reruns so many times over the past 25 years I feel like Jerry, George, Elaine and Kramer are personal friends. What I appreciate most is how the show portrays everyday situations in such a humorous light. An episode I watched recently went right to the heart of one of the principles of influence, so I felt compelled to write about it.

In this particular Seinfeld rerun Jerry bought a fancy, very expensive tennis racquet from Milosh, the owner of the sporting goods store associated with the tennis club Jerry belonged to. A short time later Jerry discovered Milosh was a terrible tennis player while playing at another club with Elaine. Apparently Milosh was so bad he wouldn’t play at his own club because he knew it would kill his reputation and sales. The following conversation ensued between Jerry and Elaine later at Jerry’s apartment:

Elaine – “So he was bad. What do you care?”

Jerry – “Elaine, I paid $200 for this racquet because he said it’s the only one he plays with. He could play just as well with a log.”

What sealed the deal for Jerry was the thought of a tennis pro – an expert – playing with the suggested racquet. He thought if it was good enough for the pro then of course he should play with it too because pros only use the very best equipment.

Jerry’s actions go to the heart of the principle of authority – we rely on those with superior knowledge, wisdom or expertise, when making decisions. And the advice of an expert is even more effective when someone isn’t sure what to do.

Jerry had been playing with a wooden racquet and had no idea there was a better option available until the pro told him so. Any newer racquet would have been an improvement but the more expensive racquet must be better because, after all, “you get what you pay for,” according to the old saying.

This happens quite often, especially when someone takes up a new sport. They buy lots of fancy, expensive equipment because that’s what the best athletes use. Unfortunately the novices could have saved a lot of hard earned cash by going with good, but less expensive equipment, until they got much better. The very best equipment makes a difference for the very best players because sometimes the difference between winning and losing is a fraction of a second, a single stroke, or inches.

Is expert advice worth listening to? Most of the time, yes, but just be leery when that advice might lead to very costly purchases that make very little difference in the end.