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”
Believing that customers and consumers are identical can be misleading. These two terms are fundamentally different. For instance, parents don’t purchase a diaper after trying it on themselves, and pet owners don’t eat pet food before buying it. When the buyer is distinct from the actual user of the product, it’s crucial for sellers to approach product strategy and purchasing considerations with this distinction in mind. Often, we engage in business without fully understanding the nature of the products involved, which can lead to failure. - Joseph’s “just my thoughts”