Chapter 65 The Third Way Other Than Acquisition and Bankruptcy

"Why don't I quit! I will!" Debra said resolutely.

Roy said: "If you want to return this product, you have to fill in the return form, right? You probably didn't look carefully, there are three copies of this return instruction form, each of which is about three pages." I'm sure you won't fill it out at all. ”

Debra's head is cloudy, this is a problem she subconsciously ignores, filling out the form or something, the most troublesome, countless messy terms, inexplicable specifications, it makes people worry when they think about it. But how could she admit defeat, she argued: "I'll fill out the list! Even if I really don't understand, won't I call customer service?"

"Oh, then you will think: Hey~ It's just a few hundred dollars, and it's a usable product, so why bother so much. ”

"I won't! I'll fill out the form and return it." ”

"When the time comes, you will still think: this is my thing, even if others pay for it, I will not sell it, even if you don't use it, you don't need to return it. ”

"I won't! I won't! Roy, whatever you say, I won't!" Debra said angrily.

"Then I'll see. Roy was noncommittal.

The psychology of "loss aversion" is a weakness of human nature. This psychological phenomenon is widely used in business behavior design, and few people can resist its power. (Appendix 1)

The biggest advantage of "behavioral design" is that you don't need coercion and inducement, you can use a few psychological routines to get people to do what you design. It's not hypnotism, but it's better than hypnosis and witchcraft.

As a well-known predecessor in the marketing industry, Gary designed a marketing campaign that is not a child's play, and it is difficult for ordinary consumers to escape from this well-designed net.

One routine after another, interlocking, people are invisibly sold without knowing it.

Debra looked at Roy's back and swore in her heart, "I won't pay." She thought to herself, "Just to be on the safe side, why don't I return this DVD now?" but I haven't used this new product myself...... It's so tangled......"

……

……

Roy drove past the Golden Gate Bridge, looking at the calm coast and the magnificent Red Bridge, and felt countless emotions in his heart.

That DVD is Debra's mirror, and BesTV's Joseph isn't his own mirror.

It reflects its own weakness, humility, powerlessness, and the embarrassment of struggling on the brink of bankruptcy, and the fragility, youthfulness, and isolation of Red Coral, which can be tossed to the ground by a single wave.

BesTV, the behemoth's competitor, is similar to the future Chinese Internet giants BAT in front of Roy, and no matter what industry entrepreneurs do, they can't avoid these three mountains.

Being acquired by a giant may be the best result, but most of the time, it is an imitation of the giant, relying on the resource advantage, and the entrepreneur who fights has nowhere to cry.

Just like now, if BesTV really takes Red Coral's business model seriously, then a hundred Roys can't handle each other. You must know that BesTV is the overlord of home theaters with an annual income of more than 6 billion.

BesTV wants resources and resources, talents and talents, channels and channels, and R&D and R&D...... If you want to target a seedling, you don't need a 360-degree blow, you only need to imitate it, it is likely that Red Coral will fall into the A round of financing dilemma, and there is no money to continue to support the company's development, then talk about the future of wool.

Roy has a headache now, a lot of headaches, and if Red Coral has any results in two months, it may face the most important turning point in the company's fate, whether it is life or death, success or failure.

Roy pondered the dangers of the future, searching through the lessons learned in his head to come up with the best strategy.

In the world, there are a large number of companies registered every day. Some are like a star, soaring into the sky, some have accumulated a lot of money and have sprung up, a small number of people are struggling with meager profits, and most of the enterprises are quickly coming to an end and disappearing.

Roy seems to see the end of his company, and if his company cultivates the market well, there are two possibilities, being copied or acquired.

As for whether your own company will be copied or acquired, it depends on the cost difference between the two.

To put it simply, if plagiarism only needs to spend 1 million to achieve the result of the acquisition, then the company's purchase price will definitely not exceed 1 million.

In the cruel world of business, there is no such useless morality as compassion. The CEO of such and such a company said that he chose to buy a certain business and disdained to choose to plagiarize - this person is definitely a liar. The real answer is likely to be that it takes too long for him to form a similar team by himself, and by the time his own team makes the same product, the hot spots have already passed by. If copying an idea can only take a month or even a week to do, who would choose to buy something as expensive as that?

Therefore, if Roy wants his fate to be acquired, then he must create technical barriers, market barriers, price barriers and other advantages as soon as possible, so that companies that want to enter this segment need to spend a lot of money to achieve results.

In this case, the cost of imitation is far higher than the cost of acquisition. Wise business managers choose the latter.

Roy clenched his fists, feeling a tremendous sense of urgency. He now has to do more and more, so that his company's advantages will continue to expand like a snowball, and finally no one can shake it. Only in this way will he be able to stand out in the cutthroat business competition.

However, is it true that in the end, fate is to be satisfied with buying oneself at a high price?!

Roy was a little unwilling, his eyes were glowing red, and he secretly swore in his heart, no one would want to bite off my flesh easily!

I want to quietly watch you, a giant, being eaten away little by little, in arrogance, in struggling and helpless, in hysteria, and destroying like fireworks!

……

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[PS] Appendix 1: Loss aversion is when people are faced with the same amount of gains and losses, and they think that the loss is more unbearable for them. The negative utility of the same amount of loss is 2.5 times the positive utility of the same amount of gain. Loss aversion reflects the fact that people's risk appetite is not consistent, showing risk aversion when it comes to gains and risk-seeking when it comes to losses.

There are many well-known cases of loss aversion, and I will give you an interesting example here.

Uber is a car-sharing company that is the equivalent of Didi and Uber in China.

People who drive taxi drivers set a goal for themselves every day, such as earning $500, quitting and going home to rest.

But it's not in Uber's interest for drivers to do so, and Uber wants drivers to run for more time, or even never go offline. Uber hired hundreds of sociologists, data scientists, and idea game designers to design mobile apps for drivers, and to study how to make drivers addicted to the activity of "driving a taxi" like playing a game.

The first trick Uber does is give drivers a "dynamic" target. A driver is tired of running, he clicks on the mobile app and says I want to go offline, Uber will not let the driver go offline immediately. It pops up a prompt for drivers: "You only need to earn another $6 today, you can make $40, do you really want to go offline now?"

When the driver makes $40, he will ask you why don't you make $60? It's like a carrot hanging in front of the donkey's eyes, which can never be reached, but it makes the donkey full of motivation.

(Uber also designs a lot of tricks, I won't repeat them one by one, if you are interested, you can ask me for information)