Price, value and auction

I recently wrote a post called Does the customer determine value?

Here are some more thoughts related to value, price and the customer.

Think about an auction, the seller will often have a reserve price (the minimum amount they’re willing to sell the item for). Yet items often get sold for significantly higher because buyers are prepared to keep bidding if they want the item badly enough.

Even if an item could fetch around 20k, the seller can never start with that price, they have to allow the buyers to build up to it. Instead, the seller can only hope that people will pay that amount or at least above their minimum price.

I think it could be said that, although the seller sets the price it is in fact the customer that determines the value of the item.

Does the customer determine value?

I recently saw some things for sale and my first thought was that I wouldn’t buy them. In my opinion the items weren’t worth the price they were being sold for.

But people were buying the items.

Turns out that that even though I didn’t value the items at the price they were being sold for other people did, which got me thinking.

Who determines value?

If you’re selling something for £50 and nobody buys it, is it actually worth £50.

Or does value come from what the customer is willing to pay for it.

In my opinion it is the customer that determines the value because they’re the ones willing to pay for it. However, it is worth noting that just because you’re unable to sell to one group of people, doesn’t mean you’re prices are too high.

It might just mean that those people don’t see the value in what you’re selling.

But maybe another group will.

Job satisfaction

Let’s delve into a topic that matters. But first cue the music *plays satisfaction by the rolling stones*.

If someone asked the question of what would make you happier in your current job, what would you say?

If the answer is more money, think again, think about the job itself.

Some possible answers could be:
To be less stressed
Work less hours
To feel more connected to the people you work with
To work on more interesting projects
To learn a software or a new skill
To have a manager that’s helpful
To feel heard
To be recognised for the work you do
To feel valued

Some of these could probably apply to life in general and I’m guessing the same could be said for whatever is on your list too.

A lot of us settle when it comes to what we do for a living then get surprised that we’re unsatisfied.

If you decided to work in healthcare because you were taught it was a good stable job and you got scared into believing that an ‘unstable’ job would be too risky, sure you might grow to like what you do but you also might not.

If you make choices based on the belief that you can’t get the things you actually want, well then you’re probably not going to get them.

Now let’s get back the list and against each point write down what you can do to make them happen. And what you will do if there’s any pushback.

After a month or so you’ll probably notice some changes in how you feel about your job.

If not you can always get a new one.

You don’t have to grin and bear it.

Black Friday: A false sense of urgency

Buy it now, before it’s too late!

So yesterday was black Friday and I think for the first time ever I noticed how full on it actually is.

There are so many things to possibly buy and so many deals and discounts to give into.

As I scrolled through sites looking for potential purchases I has a sort of eureka moment which led to me deciding not to buy anything at all.

You see the thing is I didn’t actually need any of the things I was going to buy, I just wanted them. Things for the sake of things or things just for show.

It feels great to buy things and know you saved money.

But black Friday is also quite intense and I feel that a false sense of urgency is created with these short term sales.

On one hand it’s great because you can save money on things you’ve been wanting or needing for a while.

But on the other hand there are so many emails, tweets, YouTube videos, insta-stories and blog posts providing you with discount codes and links that even if you didn’t plan to buy anything you might find yourself taking (or getting taken) advantage) of the 30% discount on a luxury skincare brand.

It gets to a point where you feel good buying something you don’t even need just because it was £14 cheaper.

So, I thought it might be worth reminding you (an myself) that you’re not saving money if you had no intentions to buy it in the first place.



Getting more money for less work

If the service you offer doesn’t require you to be there in person then there’s a chance you can get more for doing less.

Take a coaching service for example.

Say you have 8 clients who all have a total of 4 one hour sessions a month costing £55.

That’s 32 hours a month earning £1760

But what if you batch your sessions and make them online with 2 groups of 4 but each session now lasts 1.5 hours and now costs £50

That’s 12 hours a month earning £1600

But now lets see one group of 8 with a weekly 2 hour session at £55.

That’s 8 hours a month earning £1760.

Imagine working a quarter of the time but earning the same amount, if not more.

It’s not about being money hungry but simply having an awareness that the amount you earn isn’t dependent on how much time you spend working.

Is it so wrong to be influenced?

People make careers out of their ability to influence others.

There’s whole branches of psychology and sections of NLP about how to influence and sway people in whatever direction you desire.

In fact people have the ability to make us feel as though we desire the very thing they have to offer and we believe it so much that we follow that feeling.

We spend money on things we’ve been influenced to buy. We follow the lives of strangers who influence the way we live our lives, the places we go, the way we dress and the products we use.

And sometimes it all seems calculated and sleazy.

You start to question if you really want anything at all.

But I can’t help but wonder, is it so wrong to be influenced?

I think the answer is no.

Of course if you’re spending all your money trying to be like someone else buying things you have no use for and generally have no sense of self you might need to take a step back.

But if you were influenced to read a book that taught you something new or opened your mind up to a new perspective, I think it’s okay.

Once I started earning enough money to buy my own things I realised that my purchases were heavily influenced by a variety of factors, not just people.

Often it’s about how we want to feel or be perceived and the person we are influenced by is likely to resonate that.


Pyramids and Ponzis

Less than two weeks ago someone I follow on Instagram who I met at an event last summer posted something about a loom to their stories.They detailed how they were looking to recruit people to add to their circle and even showed a graphic to explain how it all works.

Below are snippets from a BBC article I read recently:

-The scheme asks participants to pay £160 up front with the promise of making a return of eight times that amount.

-The scheme relies on you then recruiting other people to join up and to part with their money as well.

For everyone in the scheme to make a profit, though, there needs to be an endless supply of new members.

In reality, the number of people willing to join the scheme, and ultimately the amount of money coming into the scheme, will dry up very quickly.

-“In this one 64 people had to pay in to get the top payout – that’s about £10,000 you need to send to a fraudster between 64 people. So it’s pennies for a fraudster to send back £1,000 to one person, they’ve still made £9,000.”

Warning over pyramid scheme aimed at social media generation

And so the point is to be recruited and then recruit. Straight away I knew this didn’t sound right. It was a one off payment of  £25 to join which I suppose was smart because it makes it attainable to the common man.

However, what first came to my mind was a Ponzi scheme. It’s something I’d forgotten the definition of but what I did remember was an individual getting rich and promising the same for others, along with fraud, prison and the Wolf of wall Street.

I’d almost forgotten about the loom circle post until I saw someone tweeting about it and the next day the person that shared it on their stories shared it again.

There was no part of me that wanted to join but what I did do was research because I knew there would be articles from victims of the loom circle warning others against it.

This whole thing is a pyramid scheme where people make money from recruiting new people. No recruits, no money.

It’s advertised as an easy way to make money and of course there is money to be made but it’s the people at the top that gain.

The difference between this and a ponzi scheme is the illusion. With a ponzi scheme you get money from people and decieve them into beliving you’re investing their money then recruit money from more investors to pay the ‘return’ to the other investors. A popular example is Jordan Belfort  whose book inspired the movie ‘The Wolf of wall street’ movie.

I don’t support these kind of schemes either way but at least with the ponzis scene the people you’re taking money from believe you’re legit.

With this loom thing once you give it some thought you realise that it’s model of success is built on having infinite people to recruit. And so how does the last person to join make money?

Of course a 7+ billion person pyramid scheme would never happen. But our circles of who we know only span so far and circles of contacts will overlap. All of a sudden it becomes a race to recruit.

By law in a lot of places these schemes are a type of fraud because you aren’t actually investing in anything. It’s not sustainable and eventually the person at the top after collecting x amount of money will disappear and the scheme will collapse.

The people that gained nothing from it will want their money back and trust will be lost.

The recruiters offer the promise of financial reward but it’s so much more than that, it’s psychological. Factors such as greed, likeability, authority, reciprocity and consensus all contribute to how the scheme manages to work (The psychology behind pyramid schemes).

Likeability is a great example because we’re more likely yo trust the people we like or be convinced by them.

Granted participants can make money from pyramid schemes but why not play the long game. Start a business or learn to invest in stocks. Provide a product or service that people are willing to pay for.

A quote from Seths blog post Are you being Manipulated?

“if you knew what they know, would you be happy to do what they’re asking?”

It’s a question worth asking.

The answer will probably be no, it’s only a small group of people that can say with certainty that they’re okay with convincing family and friends to put money into a scheme that is a form of fraud by dressing it up as a great business opportunity.