Making dough from the right behaviour

5. Pricing

“Quality and service will be remembered long after the price is forgotten.”

Tom tapped into a few very powerful behavioural principles here:

• First, there’s what is called the “hedonic treadmill”. This means we overestimate the joy we will feel from a purchase (eating this pie will make me happy for weeks), because we adapt very quickly and move on. But the experience of service and atmosphere will be with us longer.
• Second, we have a “remembering” and “experiencing” self. This means we are persuaded by not only the experience but our memory of it.
• And, finally, we self-herd. This means we follow decisions we’ve made previously so because the memory of a great quality pie and great service will outlive the memory of cost, we will be more likely to buy a pie in future.

6. Personal growth

“Everything you want is just outside you comfort zone.”

A believer in raising the bar and constant self-improvement, Tom challenges our “status-quo” bias where we tend to stay in our comfort zone.

7. Leadership

“When you are placed in charge, take charge.”

We can often be scared to assert ourselves as leaders because that can mean failure is on our head. This is classic “loss aversion” where the risk of losing is more persuasive than the benefits of succeeding, so acknowledge that’s what is holding you back and try anyway.

8. Communication

“Everyone smiles in the same language.”

In talking about language gaps he has experienced here and overseas, Tom keeps it simple: See similarities rather than differences. We can all smile, and that’s the greatest bonding device you can have. Behaviourally, Tom is using our tendency to seek patterns and commonality to overcome our tendency to demarcate.

A refreshingly authentic and animated presenter, Tom is the poster-child for smashing through lazy mediocrity by keeping it simple and getting it done. As he says, “You can starve to death reading a cookbook”. Time to get cooking.

Bri Williams runs People Patterns Pty Ltd, a consultancy specialising in the application of behavioural economics to everyday business issues. Bri is a presenter, consultant and author who you can find out more about at www.peoplepatterns.com.au, viabri@peoplepatterns.com.au or by following on Twitter @peoplepatterns. Bri’s book, “22 Minutes to a Better Business”, about how behavioural economics can help you tackle everyday business issues, is available through the Blurb bookstore.