The Decoy PloyHave you ever wondered why the price of a large drink or popcorn at the movie theater is not that much more than the price of a medium? It’s because the medium is a decoy. Its purpose is to change your perception of the value of that large soda or popcorn and drive you to buy it rather than the more economically priced small. This is a perfect example of a pricing tactic called The Decoy Effect. One of the most famous examples of the decoy effect is employed by The Economist magazine. Way…Keep Reading
Cash In / Cash OutDuring my business model series earlier this year, I mentioned cash vs accrual accounting. (See The Cost of Doing Business) Some folks reached out to me to ask about the difference between the two, so I thought I’d answer that question along with providing some additional context. Legal Disclaimer: This is purely for informational purposes only as I am not a financial, accounting, or tax professional. Now that we've gotten that out of the way. Let's get into it. Generally speaking, the two…Keep Reading
Live and LearnLast week, I confessed that I don’t read business books anymore, preferring to watch a workshop or presentation instead. (If you missed it, check out Is Reading Fundamental?) So, I thought I’d share some info about a course I’m auditing for free online entitled ‘Wealth and Poverty.’ The course is taught by University of California at Berkeley professor Robert Reich, the former Secretary of Labor under US President Clinton, who is also a noted economist and mainstay media figure. Reich is a…Keep Reading
Is Reading Fundamental?If you are a business book author, I apologize in advance for this missive. Maybe two years ago I made a rather rash decision to stop reading business books or namely books about entrepreneurship and startups. I made this decision in part because I really wanted to get back to reading for pleasure without feeling guilty that I should really be reading something more practical. And also, because there are only so many hours in a day that I can dedicate to reading and I want that time to be…Keep Reading
One Man's ArtLast week, my friend Cindy offered to take me to the New York Botanic Gardens as she has a membership there. It was the final days of their annual Orchid Show and I was looking forward to it. We picked a lovely sunny day and met up at the train station. On the way there, Cindy told me that some of her other friends who'd already been to the show during its 'prime time' were not impressed. They advised her that it wasn't really worth the time and trouble. Now, I hadn't been to the gardens in…Keep Reading
On a Gut LevelAs I’ve mentioned before, I love learning about how our brains work especially as it relates to decision-making. Recently, I read about a really interesting medical case. A successful lawyer required brain surgery to remove a tumor. The surgery was successful, and the lawyer recovered. He went back to work but couldn’t actually perform his job or any other job as it turns out. In short order, he went on disability, his marriage fell apart, and he moved into his brother’s spare room. Even…Keep Reading
Have you ever wondered why the price of a large drink or popcorn at the movie theater is not that much more than the price of a medium? It’s because the medium is a decoy. Its purpose is to change your perception of the value of that large soda or popcorn and drive you to buy it rather than the more economically priced small. This is a perfect example of a pricing tactic called The Decoy Effect. One of the most famous examples of the decoy effect is employed by The Economist magazine. Way…Keep Reading
During my business model series earlier this year, I mentioned cash vs accrual accounting. (See The Cost of Doing Business) Some folks reached out to me to ask about the difference between the two, so I thought I’d answer that question along with providing some additional context. Legal Disclaimer: This is purely for informational purposes only as I am not a financial, accounting, or tax professional. Now that we've gotten that out of the way. Let's get into it. Generally speaking, the two…Keep Reading
Last week, I confessed that I don’t read business books anymore, preferring to watch a workshop or presentation instead. (If you missed it, check out Is Reading Fundamental?) So, I thought I’d share some info about a course I’m auditing for free online entitled ‘Wealth and Poverty.’ The course is taught by University of California at Berkeley professor Robert Reich, the former Secretary of Labor under US President Clinton, who is also a noted economist and mainstay media figure. Reich is a…Keep Reading
If you are a business book author, I apologize in advance for this missive. Maybe two years ago I made a rather rash decision to stop reading business books or namely books about entrepreneurship and startups. I made this decision in part because I really wanted to get back to reading for pleasure without feeling guilty that I should really be reading something more practical. And also, because there are only so many hours in a day that I can dedicate to reading and I want that time to be…Keep Reading
Last week, my friend Cindy offered to take me to the New York Botanic Gardens as she has a membership there. It was the final days of their annual Orchid Show and I was looking forward to it. We picked a lovely sunny day and met up at the train station. On the way there, Cindy told me that some of her other friends who'd already been to the show during its 'prime time' were not impressed. They advised her that it wasn't really worth the time and trouble. Now, I hadn't been to the gardens in…Keep Reading
As I’ve mentioned before, I love learning about how our brains work especially as it relates to decision-making. Recently, I read about a really interesting medical case. A successful lawyer required brain surgery to remove a tumor. The surgery was successful, and the lawyer recovered. He went back to work but couldn’t actually perform his job or any other job as it turns out. In short order, he went on disability, his marriage fell apart, and he moved into his brother’s spare room. Even…Keep Reading