How we decide

Our first boil, 2019

Moving to Florida in 2018 has been mostly positive. Y’all and ma’am are great and I use them each day. The weather is wonderful. We also make a boil.

A low-country boil (minus the pesky crawfish) is a holiday and weekend staple. Boil water with seasoning; add potatoes, corn, onions, sausage, shrimp, enjoy. The ratio of work to taste is very low. It’s a good deal.

But making it the first time was hard. We had friends over and I didn’t want to be the person who gave everyone food poisoning or served potatoes that tasted like dirt. The whole meal went great, if not a touch spicy, and each subsequent preparation has been slightly easier even for serving a crowd.

There’s a lot of other options we could do as well. We made a lot of chili when we lived in Ohio. We could order out, make sausage stuffed potatoes, or any number of things. But we don’t. We make a boil.

A boil is familiar. It’s easy. The opportunity cost is opaque. Will <other meal> be better? We don’t know. Let’s make a boil.

A lot of decisions are like this. Opportunity costs are hard to quantify.

During the late teens one bit of regular startup advice was that a product had to be 10x better than the existing option. While JTBD offers a slightly different approach, the idea is a good one. People do switch from one thing to another all the time but it’s often because the decision to do so is easy.

Making a boil in Ohio: hard.

Making a boil in Florida: easy.

Organizations then can consider how to dial the friction up or down. To keep serving people, make it easy for them to stay. To serve new people, make it easy for them to switch.

Cowen’s Chow Choices

One local topic during COVID has been motor homes. Some fellow dog walkers want one, some don’t. The obstacle, as often the case, is cost.

A few friends have them and universally they mention the deal they got. It was either a family friend, a distressed seller or a trade-up-buy-out-sale. For us, the math doesn’t work. Thirty-thousand dollars is a lot of nights at a Hampton Inn.

“Buying good things can’t be the secret to success in investing. It has to be the price you pay. It’s not what you buy, it’s what you pay. There’s no asset so good it can’t become overpriced.” – Howard Marks

Great rewards come where value diverges from price. This is the moneyball insight. This is the JTBD insight. This is Tyler Cowen’s Dining Guide insight too.

Where are the wrong metrics being used?

Consider the name of a restaurant suggests Cowen. Would you eat at an Ethiopian restaurant called EYO Sports Bar? Cowen commented: “When I heard that name I thought, this place must be great. When Americans want to eat Ethiopian food what kind of name are they looking for? The Red Sea? Queen of Sheba? Fine. But when it’s EYO Sports bar you know it’s really for Ethiopians.”

In general, better food will be at places with bad names.

Also avoid places on the beaten path, full of beautiful people, and with famous chefs. These are all metrics some people use to choose a restaurant but that don’t necessarily contribute to the quality of the food. It might be good food, but won’t be a good deal.

Instead, use the economic Cowen espouses. Like the name Rus-Uz, a place that serves Russian and Uzbekistan food (and caters!) in Arlington Virginia. Ask, “‘What is the appeal to the masses?’ In relative terms it’s the Russians, so of course that means the Uzbek dishes are better.”

One way to think about metrics is to consider anything that has been quantified, counted, or numbered. It’s easy to count units but hard to count quality.

Part of the reason personal productivity has been an internet subject for so long is that it’s hard to measure. How does someone measure their work? Ask anyone who creates content online and they’ll tell you that it’s the oddest posts that get shared the most. The best productivity advice might just be: don’t give up.

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