Sometimes you have to throw logic out the window.

Confused

I have many conversations with people about their businesses. I try to keep things lighthearted and not get too too serious about any subject. Sadly, or fortunately depending on how you look at it, I don’t have any conversations where the outcome will truly affect the world on a global scale – so I figure I’m approaching things in a healthy way. One tongue-in-cheek phrases I find myself saying time and time again when someone says that they don’t understand why their good idea isn’t being adopted or why their ideology is not the way most people think is, “well, you see, you’re thinking logically in an illogical world”. 19 out of 20 times I will at least get a smile out of them, and if I’m lucky, some added perspective to the conversation.

It’s gotten me thinking though, this joke is funny because it’s true. Why is this so? There are all sorts of questions we think about regularly that are too frustrating to warrant the time to really get to properly analyze.

Why

You've got a dealI don’t think anyone will ever be able to answer these last three so I’ll continue to brood on those offline; but, the first five can very much be attributed to politics. Now, everyone knows politics occur in Washington but the fact is, the larger ANY organization gets the more politics are involved. This should be fairly obvious. The Webster dictionary defines politics a few ways but the one I think most apropos is this one:

Political affairs or business; especially : competition between competing interest groups or individuals for power and leadership (as in a government)

I would distill that down to a very simple phrase: People want what they want.

The IRS doesn’t want a simple tax code because there are jobs and money invested in it being more complex. Think of all the auditors that would be unemployed if we all just paid 25% of our gross income to Uncle Sam. NAR doesn’t want a national MLS because MLSs generate revenue for them. More MLSs (over 900 of them I believe) means more memberships, more boards, and more money that goes to NAR. Confusion in our education system means that taxes are more easily justifiable and fear keeps parents in line. Politicians also love the subject when it comes to getting votes based on emotion. Unions don’t give anything back because if they set that precedent they may lose membership and that means less union dues collected. Banks are in the business of making money – literally. Unsuccessful banks serve as food for the successful ones. When citizens are late on their bills (like in a bad economy) banks make out big on interest and late fees which are astronomical when you consider the term of the loan. A bad economy is great for banks.

You’re depressing me, Patrick

Sad GuyI don’t intend to make this a doom and gloom piece or a politically charged rant. Actually, it’s quite the contrary. You practice politics too – every time you post one of those silly memes up on your favorite social network, get involved with a discussion on the rights of any group, or refuse to buy a product because you feel the company does something you don’t like. We all do it.  The point I am making here is that it’s human nature and it’s never going to go away. UNDERSTANDING THAT LAST SENTENCE IS THE POINT OF THIS POST. Once you get there you can move forward and make it work for you. Sometimes well, sometimes very well. Logic, regardless of how solid, does not always apply to business partially because there is no free market and partially because we are a flawed species (not always a bad thing).

What does this mean to your business?

Simply put, pay attention and get over it. Understanding those politics can save you a ton of heartache and money. The IRS isn’t going anywhere anytime soon so get yourself a good accountant and make sure you stay within reason when pushing the envelope. IMO owing a small tax bill at the end of the year is better than getting a big refund. NAR is never going to put together a national MLS so understand the big players and their similarities/differences when it comes to interacting with them. If you are a vendor stay away from geographically fragmented markets if what you do is labor intensive and custom. Banks want your money so be smart about borrowing from them – and how you pay it back. Interest and late charges are the most insidious and high margin transactions they do. Clear the credit card balance every month unless you are going to make more money off of that cash than they will off of you for not paying it – this is highly unlikely BTW.

And for God sake, get a 99¢ cup of coffee like the rest of the world!  I’m sorry, paying that much is just silly.

-PH

7 Responses

  1. Logical / Illogical… I sooo want to figure a way to use my favorite Spock quote somewhere in here

    “in an insane society the sane man must appear insane” – Mr. Spock

    Seriously, you are spot on buddy, as always!

    * How about, “In an insane business economy, the sane business must appear insane”?
    oh well.

    1. Ha ha, well, yes. I have had soooo many conversations lately with people that are mystified by how messed up certain aspects of their industry are and I guess I just used that term so much that I figured, “Let me write this stuff down. If for no other reason than a reminder to myself that I am indeed not insane”

  2. Time to school you kids.

    Why don’t teachers run our schools?
    Because a teacher, roughly speaking, is someone who TEACHES. Running school is NOT teaching. You could just as well ask why don’t car mechanics fly plane. Because they are car mechanics, not pilots. Think about definitions and meaning behind words before you ask questions.

    How does someone in the UAW get $25/hour to push a broom?
    Boss decided to offer X amount of money for Z work, and someone accepted. Nothing wrong with that. How much money you “deserve” for work is relative concept. Boss will put forth his “opinion” and if you like it you can accept it.

    Why would someone possibly pay $7 for a latte or $9 for a pint of craft beer?
    Because he/she thinks that this amount of money is appropriate for product they receive. If you have different opinion, well, then its your opinion, but certainly not a UNIVERSAL TRUTH.

    Why can’t people let others out of an elevator BEFORE rushing on themselves?

    Why can’t people jump on one leg while waiting for a train? Why can’t people get on the ground and roll while in shops? They can, they simply don’t want to. Why? Because they are rational. You have to have reason to do something rather than having a reason to NOT do something. Thats rationality. What is the reason to run out of elevator before letting others out? Because I will faster get to my destination. You don’t like this reason? Well your personal opinion regarding what is and what is not good enough reason to do something is just that- you personal opinion. You are not all knowing god of universe. Your opinion is not fact deal with it.

    1. Thanks for your comment, “Harsh”. Glad to know you. I think you may have missed my point here. When I say ‘teachers running our schools’ I’m referring to them having real decision power on subjects of curriculum and delivery. That’s actual teaching. I’d love it if you could find me a teacher that actually agrees with Common Core practices. They are a relatively new practice here in the US that has many parents, children and teachers frustrated.

      In terms of the $25/hour broom pusher. The manufacturer did not offer that rate out of their own free will and accord. That rate is set by the UAW (in a contract negotiation – politics) not the car manufacturer. This is why the person that works across the street at Denny’s makes minimum wage to do the same job. Unions are driven off of contracts that have been predetermined here in the US.

      If you read the third paragraph I don’t think anyone will ever be able to answer the last three questions I ask as they are really just more sarcasm than anything else. They weren’t really intended for discussion, as stated in that paragraph.

      FWIW, if the people waiting for an elevator let those on it OFF before they get ON, it will guarantee that those getting on will get to their destination faster. That’s straight logic and not up for debate. I file it under ‘things that will never make sense to me’. 🙂

      By definition, a blog is very much subjective. Much of what I write up here is indeed opinion. I just happen to have an opinion that people tend to pay lots of money for. There’s plenty of things I don’t agree with on many of the blogs I read but that’s what makes them so great. I enjoy the different perspectives and they make me think about my own. I hope you enjoyed at least a little bit of this post and it made you think about changing the things you can control and not getting caught up on those you cannot – which is the essence of this post.

  3. You make the argument that letting people off an elevator before getting on means that you’ll arrive at your destination faster, but if the destination is inside the elevator, then wouldn’t that mean you arrived there faster by getting on first? If the destination is the next floor, how does letting one leave an elevator first before getting on mean you’ll arrive at the next floor faster? Maybe you think people will be in the way if they get on first and the person getting off will have to maneuver through a crowd to reach the exit, but what if there are no obstacles in the way?

    1. I’ve never had to be at a meeting inside an elevator in my life. Letting people off before you get on will, in the grand scheme of things, allow everyone to get to where they are going faster. Those people who have to get off are going to get off. The faster that happens the faster those doors close and the elevator heads to its next stop. In the event that there is room for two people to pass and one is getting on, and one is getting off theoretically you are right but realistically people will walk slower in an effort to ensure that they do not bump into the person coming their way thereby slowing their departure and taking longer for the elevator to close. There is zero down side to letting everyone off before you get on.