What I spend is someone else’s income. Apple co-founder Steve Jobs discussed every morning at breakfast with his family about buying a set of Miele washing machines and dryers from Germany for two weeks. Why? Of course, it was to teach their children about economics and to illustrate a lesson about opportunity cost, a common trait among wealthy people. If you buy this washing machine, you cannot buy that one. That is the opportunity cost. It’s a form of relative value, based on the idea that choosing one option means sacrificing another, so the value of each can be compared within those limits. Wealth begins with training in understanding even trivial opportunity costs. To succeed in business, you need to learn how to measure opportunity cost first, rather than just how to make money. - Joseph’s “just my thoughts”
The IKEA Effect is a type of the Ownership Effect. People tend to become more attached to owning an item than borrowing it. Additionally, putting effort into their possessions enhances this attachment. However, if the effort is too much, it can have the opposite effect. IKEA intentionally does not sell furniture as finished products. Instead, it uses a sales method that encourages customers to assemble their furniture, which increases their satisfaction with the final piece. Furniture is not just a temporary consumer product but an experiential item that is visible and used regularly over time. When owners value their furniture, they see it as a vital part of their lives and a reflection of their family relationships, rather than simply a product that meets their needs. Customers who experience this tend to desire more than just furniture; they seek a symbol that fosters family bonds. However, this sales approach may not be suitable for all types of products. - Joseph’s “just my though...