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#1771 The Psychology Of Value - Harps · The You Project

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Speaker 1: A good a gang. I hope you're great. Just want
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Speaker 1: to mention my mentoring program before we kick off. Yes,
0:05
Speaker 1: it's a blatant plug. It's what I do, it's how
0:07
Speaker 1: I roll. Feb. Three, we're kicking off on ten weeks
0:12
Speaker 1: of frivolity and learning and growing and poking and prodding
0:15
Speaker 1: and yeah, some of you it's going to be great.
0:19
Speaker 1: Some of you maybe not where you're at at the moment.
0:21
Speaker 1: But for those of you who think you might want
0:23
Speaker 1: or need or benefit from a little coaching and perhaps
0:26
Speaker 1: coercing and mentoring as you head into twenty twenty five,
0:30
Speaker 1: go to my website if you would be so gracious,
0:32
Speaker 1: cragharpet dot net. Go to the education bit have a
0:36
Speaker 1: look at that, and you may or may not want
0:39
Speaker 1: to get involved. But anyway, we kick off Feb. Three.
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Speaker 1: It's going to be fun, all right, that's the ad now. Ah.
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Speaker 1: One of the things that I've been interested in for
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Speaker 1: a long time that falls in the space of psychology
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Speaker 1: and human behavior and thinking metacognition. All that is understanding
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Speaker 1: the way that value works, like what what is value?
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Speaker 1: Perceived value, real value, intrinsic value, external value, Like what
1:08
Speaker 1: makes me think something is worth something. What makes me think, well,
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Speaker 1: that's good value, that's a good deal, or that's a
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Speaker 1: shit deal, that's not good value at all. But somebody
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Speaker 1: else might look at the same proposition or the same
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Speaker 1: service or the same product or the same whatever it
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Speaker 1: is and think, no, that's great, that's a good deal.
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Speaker 1: And so what is objectively good value? What is a
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Speaker 1: subjective interpretation of value? And also, as somebody you know
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Speaker 1: obviously you know my job in inverted commas is well,
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Speaker 1: a big part of my job is selling my skills
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Speaker 1: and knowledge and talent and time for money. So when
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Speaker 1: I go to a company, I do one hour keynote,
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Speaker 1: or I do a half day workshop or a full
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Speaker 1: day you know kind of conference with them or workshop
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Speaker 1: with them, there's a value you placed on that. And
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Speaker 1: there's a point in time where a company rings up.
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Speaker 1: Usually they talk to Melissa or email and they'll say
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Speaker 1: to Melissa, this is when our conference is, or this
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Speaker 1: is when our program is, this is what we're thinking.
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Speaker 1: And she will say cool, so for that, that would
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Speaker 1: cost you x yz. And they will either go great,
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Speaker 1: let's get him on board, or they'll have some other questions,
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Speaker 1: or they'll go fuck, no, that is ridiculous, that is
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Speaker 1: too expensive. And what is interesting is that, as I
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Speaker 1: said at the start, for some people x X amount
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Speaker 1: of dollars or a particular x a particular product or
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Speaker 1: service will be considered to be good value or a
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Speaker 1: good investment, and for somebody else the same financial investment
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Speaker 1: paying for a different person could be seen as an
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Speaker 1: absolute bargain or overwhelmingly too expensive and terrible value, depending
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Speaker 1: on the story that you have about what you think
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Speaker 1: that person or that product all that program is worth.
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Speaker 1: There were times when in my life we won't talk
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Speaker 1: about particular dollars, but when I first started as okay,
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Speaker 1: I will, I will talk about in this case, i'll
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Speaker 1: talk about dollars. So when I first started my first client,
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Speaker 1: my first personal training client, when I started PT I
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Speaker 1: should say, which was one hundred years ago, I got
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Speaker 1: paid one hundred dollars for three one hour sessions, so
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Speaker 1: essentially thirty three dollars an hour, and up until that
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Speaker 1: point in time were very close. To that point in time,
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Speaker 1: I was working, still working in the gym at the stage,
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Speaker 1: but I was earning twelve dollars an hour on the
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Speaker 1: gym floor as a gym instructor doing mostly gym instructing
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Speaker 1: and writing programs and doing assessments. But this was probably
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Speaker 1: nineteen eighty three or four, so forty years ago, and
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Speaker 1: I was earning, like I said, twelve bucks now, which wasn't,
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Speaker 1: believe it or not terrible. Wasn't great, of course, but
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Speaker 1: it wasn't terrible. So then all of a sudden, I'm
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Speaker 1: now earning some of my anyway, I'm earning thirty three dollars,
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Speaker 1: which is the best part of three times more, And
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Speaker 1: that was fucking incredible. That was amazing. So for me
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Speaker 1: at that point in time, I believe that thirty three
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Speaker 1: dollars an hour was enormous, And to be honest, I
4:16
Speaker 1: didn't really feel like I was worth thirty three dollars
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Speaker 1: an hour because I had been programmed, because you know,
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Speaker 1: I'd been working lots of hours on the gym floor
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Speaker 1: for twelve and now I'm just working another hour on
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Speaker 1: the gym floor, but this time I'm getting three times
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Speaker 1: as much money. And so part of the deal with value,
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Speaker 1: perceived value is the value that we have in ourself
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Speaker 1: and of ourself. Now, there's a point where that perceived
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Speaker 1: value in ourselves, or perceive worth in ourselves can spill
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Speaker 1: into arrogance or ego. But knowing knowing what you are
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Speaker 1: worth and knowing what people might pay for your service
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Speaker 1: or your advice or your skills, whatever it is, that's
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Speaker 1: also really important thing for you to have an understanding of.
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Speaker 1: So I now know, give or take, what I am
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Speaker 1: worth for a company to pay for a keynote or
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Speaker 1: a workshop or any of those things, or for coaching
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Speaker 1: or one on one of this, or one on one
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Speaker 1: of that, which I don't do a lot of anymore.
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Speaker 1: But I know kind of my worth because not only
5:26
Speaker 1: do I have a lot of experience and insight and
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Speaker 1: reasonably good self awareness around this, but also the market
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Speaker 1: tells me. Now if I say I'm worth fifty thousand
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Speaker 1: dollars a day to present to your company, and I
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Speaker 1: believe I'm worth fifty thousand dollars a day, which I
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Speaker 1: do not, but I believe I'm worth fifty thousand dollars
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Speaker 1: a day, and that's my story and I'm sticking to it. Well,
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Speaker 1: that's one thing, but we also need to be realistic
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Speaker 1: and understand what the market will pay, and what the
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Speaker 1: market will pay is largely by the market. It could
6:01
Speaker 1: be a company, it could be an individual. It could
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Speaker 1: be a sporting club in my circumstances, could be a school.
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Speaker 1: You know, what a market will pay, let's say, for
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Speaker 1: an hour of me or a day of me, is
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Speaker 1: really about what they think I am worth based on
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Speaker 1: a range of variables. I could be This is not
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Speaker 1: great science or a great explanation, but you'll get it.
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Speaker 1: I could be as good as some people in the world.
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Speaker 1: And by the way, people do get fifty thousand dollars
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Speaker 1: a day to speak. And I know you think that's ridiculous,
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Speaker 1: and I agree, But is it right or is one
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Speaker 1: thousand dollars a day ridiculous? It is five hundred dollars
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Speaker 1: a day. Is you know, if you're Tony Robbins, you
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Speaker 1: might be earning millions of dollars a day. Whatever it is.
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Speaker 1: We're not talking about what things are absolutely worth, but
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Speaker 1: what things are subjectively worth or perhaps perceived value. When
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Speaker 1: we are doing some kind of transaction of knowledge, skill, time,
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Speaker 1: expertise for money. There were times when for me to
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Speaker 1: get one thousand dollars for a keynote was for me
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Speaker 1: great money and a keynote presentation and for that company
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Speaker 1: a pretty good investment, So win win and then there
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Speaker 1: was a time when that based on my knowledge and
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Speaker 1: skills and runs on the board and reputation and brand
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Speaker 1: and profile, where that probably wasn't quite enough. Right, I'm
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Speaker 1: not going to say what again now it doesn't matter,
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Speaker 1: but it's it's really about understanding one what am I
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Speaker 1: bringing to the table? What am I offering? What are
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Speaker 1: my skills? What is my knowledge? What is my talent?
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Speaker 1: What is the information? What is the value potentially that
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Speaker 1: I bring into this environment or this person or this
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Speaker 1: company that is going to be of service or of
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Speaker 1: worth to them. That's the first thing, what is value
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Speaker 1: that I'm bringing? And the second is what is the
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Speaker 1: value that they think I'm bringing? And then the next
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Speaker 1: question is what do they think that is worth? What
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Speaker 1: do they think that is worth? So I mean we're
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Speaker 1: really diving into a topic that shapes so much of
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Speaker 1: what we think and do and feel, like, what do
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Speaker 1: we value? Why do we value it? Where does that
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Speaker 1: come from? How much of what we consider to be
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Speaker 1: valuable is all about clever marketing or societal conditioning, or
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Speaker 1: parental influence, or cultural or religious conditioning, or even emotional attachment.
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Speaker 1: So I mean, value is not just an idea it's
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Speaker 1: a lens that affects how we see the world and
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Speaker 1: how we make decisions and how we prioritize what matters.
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Speaker 1: So today I want to explore everything from intrinsic and
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Speaker 1: perceived value, to the psychology behind scarcity, to emotional driver
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Speaker 1: and even self worth. So let's get into it. I'll
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Speaker 1: do my best to keep it real, relatable, and actionable.
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Speaker 1: So let's break down two key ideas, and one is
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Speaker 1: perceived value and one is intrinsic value. So these two
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Speaker 1: concepts drive a lot of our behavior and often when
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Speaker 1: it comes to this stuff without us really even thinking
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Speaker 1: about it or realizing it. So perceived value is one
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Speaker 1: about the stories that we tell ourselves about the worth
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Speaker 1: of something. And then two, perceived value is the stories
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Speaker 1: that others might tell themselves about whatever it is that
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Speaker 1: we are selling. And of course these stories ours of
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Speaker 1: theirs might be influenced by advertising or social norms or
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Speaker 1: previous experiences or personal bias or program thinking. But nonetheless,
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Speaker 1: we have an idea in our head about what something's worth,
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Speaker 1: and like, think about this. I was talking to one
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Speaker 1: of my friends yesterday who's a trainer, and I said,
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Speaker 1: in fact, Toby I'll give Toby a shout out. And
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Speaker 1: I said to Toby, think about this. Let's say let's
10:17
Speaker 1: say I don't know what he's worth or what he charges,
10:20
Speaker 1: but let's just say one hundred dollars an hour. Right,
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Speaker 1: Let's just go one hundred bucks an hour. He could
10:24
Speaker 1: be more, he could be less. I think he's probably
10:26
Speaker 1: a bit more, but let's say one hundred bucks an hour.
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Speaker 1: Now he lives in Queensland. Let's say he moves down
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Speaker 1: to Melbourne and nobody really knows him here, so that
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Speaker 1: one hundred dollars an hour he'd probably get. But it
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Speaker 1: might be tricky if he comes to a place and
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Speaker 1: he now bases himself in a gym where despite it's
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Speaker 1: the same guy with the same skills and the same
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Speaker 1: experience and the same knowledge and the same ability to
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Speaker 1: connect and create raport. But now he comes into a
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Speaker 1: place where he has no value or no perceived value
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Speaker 1: because nobody knows him, or not a high level of
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Speaker 1: value anyway. But let's say the version two of that
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Speaker 1: story is he's going into a gym where I train,
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Speaker 1: and he's basing himself in that gym, and I've spent
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Speaker 1: the month leading up to him moving into the gym
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Speaker 1: telling everyone that I can about my friend that's coming
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Speaker 1: from Queensland. Now it's the same guy with the same skills.
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Speaker 1: But how fucking amazing he is, how brilliant he is,
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Speaker 1: the incredible results that he gets with his clients, how
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Speaker 1: smart he is, his ability to inspire and communicate and
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Speaker 1: interact with people in an exceptional way, and the great
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Speaker 1: work that he's done over an extended period of time.
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Speaker 1: And I pump him up and pump him up, and
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Speaker 1: these people listen to me, and they trust me, and
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Speaker 1: they value what I say, especially when it's in their
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Speaker 1: space of high performance and wellness and personal training. Now
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Speaker 1: he comes to the gym and he gets one hundred
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Speaker 1: and fifty dollars easily, he gets two hundred dollars, perhaps easily.
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Speaker 1: I'm not saying this is worth or not worth. I'm
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Speaker 1: just talking about the psychology of perceived value. Now, Conversely,
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Speaker 1: if Toby came to the gym and he hold everybody
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Speaker 1: he was amazing, he might actually damage his brand because,
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Speaker 1: especially in Australia, we don't like people beating their chest.
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Speaker 1: We don't like people telling us how amazing they are,
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Speaker 1: because we just see that as ego, even if they
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Speaker 1: are fucking amazing. So sometimes we need someone to champion
12:21
Speaker 1: us or support us. We need to create raving fans.
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Speaker 1: When I first started training people and working with people,
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Speaker 1: and I was okay at it, I wasn't brilliant. And
12:33
Speaker 1: then I got a bit better and develop skills and
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Speaker 1: knowledge and competence, and I started to get some good results.
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Speaker 1: And then over time I built a brand despite the
12:42
Speaker 1: fact that I never consciously created a brand or there
12:46
Speaker 1: was no social media. So the idea of you know,
12:48
Speaker 1: doing what I'm doing right now through a podcast or
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Speaker 1: having you know, an instapage, or you know, building a
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Speaker 1: brand through LinkedIn or Facebook or what that wasn't a thing.
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Speaker 1: It wasn't a thing. So how I built a brand
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Speaker 1: was I got really good at what I did. I
13:05
Speaker 1: got really good at what I did. I focused on
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Speaker 1: building rapport and connection. I focused on building great experiences. Yeah,
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Speaker 1: there are lots of trainers and lots of gyms, but
13:15
Speaker 1: there's only one me. I don't mean that sound arrogant,
13:18
Speaker 1: but you know what I mean, you can do that.
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Speaker 1: There's only one you. How do you create a version
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Speaker 1: of you? How do you present a version of you?
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Speaker 1: How do you create an experience with people where they're
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Speaker 1: fucking raving about you right now. All of a sudden,
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Speaker 1: you're in that situation and you're selling whatever it is
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Speaker 1: that you sell, and your your product is three hundred
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Speaker 1: dollars and the guy or girl next door is one
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Speaker 1: hundred dollars. But because you're so fucking amazing, people think
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Speaker 1: that three hundred dollars with you is a better investment
13:51
Speaker 1: than one hundred dollars with the bloke next door. What
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Speaker 1: is that about? That is about psychology, That is about perception,
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Speaker 1: That is about perceived value. When we think about for example,
14:03
Speaker 1: I mean an obvious one is like luxury cars, right,
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Speaker 1: And that's not to say luxury cars are not good cars.
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Speaker 1: But one of the things this actually got me thinking
14:16
Speaker 1: years ago, when I was way younger and I'd never
14:18
Speaker 1: had a I didn't really own much. I just drove
14:21
Speaker 1: average cars, and I had some motorbikes, and I rented
14:23
Speaker 1: a house. And I remember, though, I remember having lots
14:27
Speaker 1: of clients with lots of dough and some of them
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Speaker 1: would spend like more money on their car than I
14:32
Speaker 1: would spend on an apartment. If I could have afforded apartment,
14:36
Speaker 1: an apartment, which I couldn't right, and I remember thinking, wow,
14:41
Speaker 1: I wonder if this same car, the exact same car,
14:47
Speaker 1: was not called BMW, but it was called Hyundai, or
14:51
Speaker 1: it wasn't called Mercedes, or it wasn't called Porsche. But
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Speaker 1: imagine if it was the same car, like it was
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Speaker 1: a Porsche, or it was a Benz, or it was
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Speaker 1: a Merk, or it was a Ferrara or whatever, but
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Speaker 1: it was badged with some brand that wasn't valued in
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Speaker 1: the automotive marketplace or held in such high social regard.
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Speaker 1: It's like a social badge. I'm driving this and people
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Speaker 1: aren't driving it because it's infinitely a better car. In
15:20
Speaker 1: most cases, people are driving it because they want to
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Speaker 1: have one. Now I'm not saying that's a bad thing
15:25
Speaker 1: at all. I'm not saying this should stop. I'm saying
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Speaker 1: this is how value works and perception of value. Remember
15:34
Speaker 1: one of my clients once bought a car that I
15:39
Speaker 1: won't say which brand, but it was an SUV of
15:42
Speaker 1: a particular prestige brand. Honestly, I thought the car was
15:47
Speaker 1: fucking ugly. I went and had to look at the
15:49
Speaker 1: car in it. I'm like, yeah, this is good, but honestly,
15:54
Speaker 1: you could have bought a Mazda, which by the way,
15:56
Speaker 1: I think is not a bad brand. I've got no
15:58
Speaker 1: association with him. But you could have bought a mass
16:00
Speaker 1: or a Honda, and you would have paid half, maybe
16:03
Speaker 1: a third of the money, and you would have got
16:05
Speaker 1: a longer warranty, You probably would have had less problems
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Speaker 1: with it, You probably would have had you definitely would
16:11
Speaker 1: have had cheaper servicing, blah blah blah, all of that.
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Speaker 1: And when I said to this, it was a lady.
16:17
Speaker 1: I said to this lady, you know, why did you
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Speaker 1: buy that car? And she's like, oh, yeah, it's good.
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Speaker 1: And I said, what what if? Now, let's just say
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Speaker 1: it cost one hundred grand? I said, what if I
16:27
Speaker 1: could sell you an identical car, In fact, that car
16:31
Speaker 1: the same car, but instead of having those badges, we
16:35
Speaker 1: put on Honda badges. And you could buy the identical
16:39
Speaker 1: car for fifty grand, or you could have your one
16:41
Speaker 1: with a fancy, prestige German badges for one hundred. Would
16:45
Speaker 1: you take the fifty thousand dollars honder? She goes, absolutely not?
16:50
Speaker 1: And I said why and she goes, because I don't
16:51
Speaker 1: want to drive a fucking Honda, and I said, it's
16:54
Speaker 1: not a fucking Honda, it's a fill in the blank
16:56
Speaker 1: with Honda badges. Then she goes, I don't want to
16:59
Speaker 1: be seen to be driving a Honda. I'm like, that
17:03
Speaker 1: company has done an amazing job. I'm interested in that
17:06
Speaker 1: for a range of reasons right now. Imagine if you
17:10
Speaker 1: could be the Murk, you could be the BMW, you
17:13
Speaker 1: could be the Poorsche or the Ferrari. Imagine that, and
17:17
Speaker 1: anyone who's I've owned a few nice cars, I can
17:20
Speaker 1: tell you they're not more reliable. Typically, they're not better
17:24
Speaker 1: to drive necessarily, especially now, cars are fucking amazing. The
17:29
Speaker 1: landscape has really changed. But imagine if you could build
17:34
Speaker 1: that brand, because what you do is just fucking amazing.
17:42
Speaker 1: And I remember, I think I told this story briefly
17:45
Speaker 1: a while back about some of you might have heard it,
17:49
Speaker 1: most of you won't have heard it. But there was
17:51
Speaker 1: a guy not long ago. So there's a very famous
17:53
Speaker 1: street artist called Banksy. Some of you have heard of him,
17:56
Speaker 1: and allegedly no one knows who he really is, but
18:00
Speaker 1: just goes out and he does this art, this almost
18:02
Speaker 1: pop up art in the street, and he'll do it
18:05
Speaker 1: on a wall and people will take or on a
18:08
Speaker 1: canvas and leave it there. But his art is worth
18:13
Speaker 1: hundreds of thousands of dollars. And I mean something that
18:18
Speaker 1: he does in ten minutes, right, so it's highly valued.
18:22
Speaker 1: And what he did was that I might mangle this
18:24
Speaker 1: a little bit, but this is the guts of the story.
18:26
Speaker 1: So he gave this guy, I think it was eight
18:29
Speaker 1: six or eight pieces of art that he had done,
18:33
Speaker 1: so typically each one of those is going to be
18:35
Speaker 1: worth about one hundred grand or something. These were on
18:38
Speaker 1: either on I'm not sure what they were on, some
18:40
Speaker 1: kind of maybe canvas or something. But this guy went
18:43
Speaker 1: to a stall, not a stall, a market, and he
18:45
Speaker 1: had his own stall. And in the middle of all
18:48
Speaker 1: of these other marketers selling bits and pieces and candles
18:53
Speaker 1: and bloody scarves and whatever they were selling, here's this
18:57
Speaker 1: bloke with his little stall with his eight Banksies. Banksy
19:02
Speaker 1: being the artist saying, you know, these are original Banksies
19:05
Speaker 1: and they're all like sixty bucks or eighty bucks or
19:08
Speaker 1: you know, buck all now over the now. Firstly, they
19:13
Speaker 1: were actually real Banksies, and they were all worth at
19:16
Speaker 1: the very least tens of thousands of dollars, probably close
19:19
Speaker 1: to one hundred thousand dollars, if not more so, very
19:22
Speaker 1: valuable in general terms. Right now, people would walk past
19:26
Speaker 1: and see the Banksies in inverted commas and obviously think, well,
19:30
Speaker 1: at sixty bucks, that's not a real Banksy. They would
19:32
Speaker 1: keep walking, and by the end of the day he
19:36
Speaker 1: had sold something like half of the works of art,
19:39
Speaker 1: and people had kind of bargained with him, and he
19:41
Speaker 1: sold them for like forty bucks instead of sixty bucks
19:45
Speaker 1: or eighty bucks or whatever it was, so he discounted
19:47
Speaker 1: them and he ended up selling for and not selling
19:50
Speaker 1: for as best I can remember, something like that. But
19:53
Speaker 1: the bottom line was people were walking past something that was,
19:58
Speaker 1: in any other content incredibly valuable, but because that didn't
20:05
Speaker 1: fit like, well, of course this is I mean, this
20:08
Speaker 1: is a fucking you know. Next door to this stall
20:10
Speaker 1: is a bloke selling bloody moccasins and ugg boots, And
20:13
Speaker 1: just over there is a bloke or a lady selling
20:16
Speaker 1: whatever it is jam and different bloody products. Of course
20:20
Speaker 1: these are not real Bankses. It just doesn't make sense.
20:23
Speaker 1: But the truth is they were real. And so in
20:27
Speaker 1: this case, it is all about perception, It is all
20:32
Speaker 1: about context, It is all about the psychology of what
20:37
Speaker 1: a person thinks is happening. Nobody walked past thinking, oh,
20:43
Speaker 1: these are incredibly valuable works of art being sold for
20:47
Speaker 1: not much. Everybody walked past and went, wow, there's some
20:53
Speaker 1: rip off bankses, or there's some prints or whatever they thought,
20:57
Speaker 1: and as a result, nobody considered it to be real.
21:03
Speaker 1: And also, just as an adjunct to that, the people
21:05
Speaker 1: who did buy those at fuck all ended up selling
21:08
Speaker 1: them for a lot. So you know, there's this whole
21:13
Speaker 1: thing about what something is perhaps inherently or intrinsically worth,
21:20
Speaker 1: and then perceive value what we think it's worth. So
21:24
Speaker 1: I mean when we talk about conversely we talk about
21:28
Speaker 1: the inherent or intrinsic value of something, generally we're talking
21:33
Speaker 1: about its practicality, it's functional worth, or perhaps its ethical significance.
21:42
Speaker 1: So like for a car, a safe, reliable car might
21:48
Speaker 1: have for you a high intrinsic value because you really
21:53
Speaker 1: care about safety and utility. It doesn't matter that it's
21:59
Speaker 1: not flat or instagram worthy. It meets your real practical needs,
22:05
Speaker 1: like it gets you where you want to go, It
22:08
Speaker 1: is comfortable enough, it has the things in it that
22:11
Speaker 1: you need. It doesn't cost a fortune, It is reliable,
22:17
Speaker 1: so it has intrinsic value for you based on those criteria. Now,
22:23
Speaker 1: if we want to get philosophical, the next person might
22:28
Speaker 1: not value those things, but you do. So not only
22:31
Speaker 1: is it intrinsically valuable because it's reliable, it doesn't cost
22:35
Speaker 1: too much, it gets you from A to B, you
22:37
Speaker 1: know what's coming. But also that is what you value.
22:40
Speaker 1: So again, in a way, that's almost perceived value. What
22:43
Speaker 1: I perceive to be important is reliability and it doesn't
22:47
Speaker 1: cost me a fortune. So how much of your energy, time,
22:53
Speaker 1: money goes towards chasing things that have a high perceived
22:59
Speaker 1: value but a low intrinsic value. That's an interesting question.
23:04
Speaker 1: And how do we tell the difference. So now let's
23:07
Speaker 1: talk about how do a word this. Let's talk about
23:14
Speaker 1: scarcity or what we think is scarce, because scarcity is
23:21
Speaker 1: something that messes with our mind or our brains, you know,
23:25
Speaker 1: like for example, Banks's art like by the way, and
23:31
Speaker 1: because he doesn't do a whole lot of them there
23:33
Speaker 1: and I think his art's pretty good. But you know,
23:35
Speaker 1: I wouldn't pay five grand for something like that. I
23:38
Speaker 1: wouldn't pay probably, But if I knew that, I could
23:40
Speaker 1: then sell it tomorrow for a hundred, I might, but
23:42
Speaker 1: if I was just out and about and I didn't
23:44
Speaker 1: know who he was or what it was, it was
23:45
Speaker 1: just a thing, I definitely wouldn't pay five hundred dollars.
23:48
Speaker 1: But then I'm not a connoisseur of art. And then
23:50
Speaker 1: what that reflects also is that to me, my perceived
23:53
Speaker 1: value of that is low. But if you get enough
23:57
Speaker 1: people who believe, who perceive that that is worth a lot.
24:04
Speaker 1: And also, now let's talk about scarcity. Not only do
24:07
Speaker 1: we think it's worth a lot, there aren't many of them.
24:10
Speaker 1: There aren't many of them. So you think about why
24:14
Speaker 1: marketers and branding people love terms like limited edition while
24:19
Speaker 1: stocks last, think about, you know, concert tickets, how they
24:24
Speaker 1: sell for two, three, four times the face value, collectible sneakers,
24:28
Speaker 1: even exclusive memberships. Like the actual thing itself might not
24:34
Speaker 1: be inherently amazing, but it's the idea that it's rare
24:40
Speaker 1: or you can't get it or they are very hard
24:44
Speaker 1: to get that makes us want it more and makes
24:48
Speaker 1: us more prepared to spend more. So it affects scarcity
24:55
Speaker 1: also how we value people's time. You know, have you
25:02
Speaker 1: noticed that you appreciate someone's time more when you know
25:07
Speaker 1: they don't have much time, like I don't have much
25:11
Speaker 1: free time. I don't personally think my hours are worth
25:15
Speaker 1: more than intrinsically, I don't think my hours are worth
25:18
Speaker 1: more than anyone's. But when we talk purely from a
25:22
Speaker 1: availability and perhaps if we want to commercialize it and say, well,
25:26
Speaker 1: I want to be coached by Craig, but he doesn't
25:28
Speaker 1: have any time, but he might have one hour on this.
25:31
Speaker 1: By the way, I'm not taking new clients and all that,
25:34
Speaker 1: but I'm just talking hypothetically. Then if you can get
25:37
Speaker 1: in to see me, or get in to see whoever
25:41
Speaker 1: it is, and get an hour of their time or
25:43
Speaker 1: skill or service or whatever. And you know that it's
25:46
Speaker 1: almost impossible to get a booking, to get a time,
25:49
Speaker 1: to get a slot, and you get that booking, You're like,
25:52
Speaker 1: oh fuck, this is amazing, because that's scarcity at play.
25:57
Speaker 1: You know, when I got busier as a trainer and
26:00
Speaker 1: I got more in demand as a trainer, and I
26:04
Speaker 1: owned three gyms called Harper's, and I was Harper for
26:08
Speaker 1: a range of intersecting reasons. My perceived value by customers
26:14
Speaker 1: and clients and would be customers went through the metaphoric
26:19
Speaker 1: roof like what people would literally pay to work out
26:25
Speaker 1: with me for an hour was three four, five, six
26:28
Speaker 1: times what it was only a couple of years before.
26:31
Speaker 1: Not because I was three four, five or six times
26:33
Speaker 1: better at all at all. It's just that scarcity thing. Oh,
26:38
Speaker 1: you can't get in to see him. He doesn't have
26:40
Speaker 1: any he doesn't take on new clients. He's got like
26:43
Speaker 1: he's got a bunch of people that work for him,
26:45
Speaker 1: but he'll chat to you and all that. And I
26:47
Speaker 1: didn't do it for that reason. That wasn't a strategic
26:51
Speaker 1: thing in my business. It was just a practical byproduct
26:58
Speaker 1: of what was happening in my business. So scarcity can
27:03
Speaker 1: be a powerful influencer of perception and perceive value, but
27:11
Speaker 1: it also can be you know, misleading and just because
27:14
Speaker 1: like just because something is rare or hard to get,
27:18
Speaker 1: by the way, that doesn't mean it's worth chasing. I
27:21
Speaker 1: literally used to say to people that wanted to train
27:26
Speaker 1: with me and only me. And I don't say any
27:28
Speaker 1: of this to sound arrogant. This is just true. And
27:30
Speaker 1: it didn't happen all the time, but it happened reasonably
27:33
Speaker 1: regularly where people would come and they say, I want
27:35
Speaker 1: to do one session a week with you. I just
27:37
Speaker 1: want to do one with you. I know you're busy,
27:38
Speaker 1: and I'd say, I really don't have time, and they
27:41
Speaker 1: would essentially say, without being crazy, I'll pay whatever I
27:44
Speaker 1: need to. And I won't say what it was. But
27:47
Speaker 1: there was a period of time there where I was
27:49
Speaker 1: just so busy that I could charge five or ten
27:52
Speaker 1: times more what my trainers on the floor were charging.
27:58
Speaker 1: In other words, they could have an hour with me
28:00
Speaker 1: in the same gym, using the same equipment, and probably
28:04
Speaker 1: have a pretty similar workout and experience to training with
28:07
Speaker 1: let's just say Barry. There was no Barry, but let's
28:09
Speaker 1: say Barry, So you could train with Barry for X,
28:11
Speaker 1: or you could train with me for five X. And
28:13
Speaker 1: I would even say he's a great trainer, you'll love it.
28:16
Speaker 1: He or she has got great energy, really well qualified,
28:20
Speaker 1: lots of experience, great communicator, funny, inspiring, their shit hot,
28:24
Speaker 1: and they would go, no, I want you often that's
28:29
Speaker 1: and that is not because I am that great at all.
28:31
Speaker 1: That is because they think I'm that great. That is
28:35
Speaker 1: about scarcity, That is about a lack of availability. That
28:38
Speaker 1: is about psychology. So interesting this shit, isn't it all? Right?
28:44
Speaker 1: Let's talk about let's talk about social proof and comparison.
28:50
Speaker 1: So we're social creatures and one of our default setting
28:55
Speaker 1: is to look around and take cues from others. Right.
28:57
Speaker 1: This is called social proof, and it's a huge driver
29:02
Speaker 1: of perceived value. So when everyone's for example, raving about
29:06
Speaker 1: a new restaurant or you know, a Netflix show or
29:10
Speaker 1: some kind of app or gadget or I don't know,
29:14
Speaker 1: fucking alm and milk, whatever, people around us are more
29:20
Speaker 1: likely to jump on board because popularity creates the illusion
29:26
Speaker 1: of value. And then there's on top of that, there's comparison.
29:30
Speaker 1: So that's social of comparison. Is this all right? Let's
29:33
Speaker 1: say you see you see Let's say there's a jacket
29:37
Speaker 1: that you want to buy, and the jacket's one hundred bucks,
29:41
Speaker 1: and now the jacket is discounted. You walk past the
29:43
Speaker 1: window and now it's fifty dollars and you're like, fuck,
29:46
Speaker 1: that's half price. It's fifty dollars off. That is a steal.
29:50
Speaker 1: That is amazing, and you go in and buy the jacket.
29:53
Speaker 1: Or conversely, you walk past another jacket that you want,
29:59
Speaker 1: but it's a thousand dollars, but it's on special today
30:03
Speaker 1: for nine point fifty. There's fifty dollars off. It's the
30:08
Speaker 1: same discount, it's the same amount of money, But it's
30:15
Speaker 1: all about the percentage, isn't it. It's the same savings,
30:18
Speaker 1: But it's a totally different emotional response. And why because
30:23
Speaker 1: we evaluate value in relative terms, not absolute. Once relatively,
30:31
Speaker 1: fifty dollars off one hundred dollar jacket is fucking amazing,
30:36
Speaker 1: But fifty dollars off one thousand dollar jacket, Ah, that's
30:40
Speaker 1: what is that? Five percent versus fifty percent? It's the
30:44
Speaker 1: same amount of money, right, So we do this in
30:47
Speaker 1: relative terms and not absolute. So how do we use
30:51
Speaker 1: this bit of information. We use it by staying conscious
30:54
Speaker 1: of the traps and the tricks. Ask yourself, am I
30:58
Speaker 1: valuing this because it's truly in plant to me? Or
31:03
Speaker 1: because it seems important to everyone else? That little kind
31:06
Speaker 1: of question, that little pause, that little like breath, that
31:10
Speaker 1: can save you a lot of wasted energy and money.
31:14
Speaker 1: All right, let's have a look at let's talk about
31:18
Speaker 1: the emotional drivers of value. So let's be honest. Emotions
31:24
Speaker 1: can amplify value. For example, if you've got a note
31:31
Speaker 1: that was written to you, handwritten note that was written
31:33
Speaker 1: to you, by someone that you love or care about.
31:36
Speaker 1: It could be a grandma, or could be a friend,
31:38
Speaker 1: that could be an ex lover. It could be mum
31:41
Speaker 1: or dad, or somebody that matters to you, somebody that's
31:44
Speaker 1: important to you. That note might feel to you like priceless.
31:49
Speaker 1: At the same time, you could get an expensive gift
31:53
Speaker 1: from somebody that you don't even know well and that
31:56
Speaker 1: might not even move the needle in terms of perceived
32:00
Speaker 1: value or importance or worth to you. That doesn't move
32:04
Speaker 1: the needle. And why because it's often not about the
32:07
Speaker 1: actual item. It's not about the thing. It's not about
32:10
Speaker 1: the expensive gift, or it's not about the handwritten note
32:14
Speaker 1: from a loved one. It's about the emotional connection that
32:18
Speaker 1: you associate with it. It's about what it means to you. Again, psychology,
32:25
Speaker 1: this is your story. Your story is this is an
32:29
Speaker 1: incredibly valuable, precious note to me from Nana. And she's
32:34
Speaker 1: not around anymore, she's gone, and I can never get
32:38
Speaker 1: another one of these, and this is precious and blah
32:40
Speaker 1: blah blah blah blah bibbity bobby boo, this is super valuable.
32:45
Speaker 1: Somebody finds it on the footpath, chucks it in the
32:48
Speaker 1: bin because it ain't valuable. It's just a bit of
32:50
Speaker 1: shit on the road. So it's not actually about what
32:54
Speaker 1: the thing is so often, but rather the emotional drivers
32:59
Speaker 1: of belief or thinking op or perceived value, Like that's
33:04
Speaker 1: why we're drawn to, you know, often drawn to like
33:09
Speaker 1: vintage items, family heirlooms, anything with for us a sentimental
33:15
Speaker 1: kind of value behind it, And ain't even necessarily about
33:20
Speaker 1: the thing or the price tag or the objective cost,
33:24
Speaker 1: but rather it's about the story. You know, I love
33:31
Speaker 1: this stuff. How interesting is this? So now let's talk
33:34
Speaker 1: about value in the shadow of time, effort and a
33:41
Speaker 1: thing that they call the ikea effect. Do you like that? So?
33:47
Speaker 1: And the relationship and the interaction and intersection of effort
33:51
Speaker 1: and perceived value, Like have you ever spent Maybe you have,
33:58
Speaker 1: maybe you haven't, But have you ever spent hours assembling
34:01
Speaker 1: stuff like flat pack furniture? This is where the IQ
34:03
Speaker 1: or effect comes in. And you put that shit together,
34:06
Speaker 1: You put that fucking wonky cover together, or that you
34:09
Speaker 1: put that coffee table or that dining room table, or
34:11
Speaker 1: you put that that bloody TV cabinet together, and it
34:15
Speaker 1: takes you forever, and it's it's like it's a bit wonky,
34:18
Speaker 1: it's not perfectly square, but you did it. You built it,
34:21
Speaker 1: you put it together. You fucking love that thing. And
34:24
Speaker 1: I remember when I put that motherfucker together, and the
34:27
Speaker 1: TV's been sitting on it for nine years, and you
34:31
Speaker 1: it's really it's just a piece of furniture that ain't
34:33
Speaker 1: even that special. But you created it, you built it,
34:37
Speaker 1: and then after you built it and put it together,
34:39
Speaker 1: you painted it because you didn't love it, and then
34:41
Speaker 1: you painted it and then you fucking did whatever. Right now,
34:45
Speaker 1: you value and you don't value it because you don't
34:49
Speaker 1: value it because it's inherently amazing. You value it because
34:53
Speaker 1: of the relationship you have with it, you relate. You
34:58
Speaker 1: value it because of the effort that you put into
35:03
Speaker 1: making it something that was in a box to something
35:06
Speaker 1: that lived or lives in your space. Love that. All right,
35:12
Speaker 1: Let's talk about last one. Let's talk about the practical
35:16
Speaker 1: applications of value psychology. All right. So, so knowing this,
35:23
Speaker 1: having heard this, I want to just break it down
35:26
Speaker 1: into three simple areas. So one is business, one as relationships,
35:31
Speaker 1: one as personal growth. So how do we take all
35:34
Speaker 1: this stuff do something constructive with it? Cread some positive change.
35:37
Speaker 1: So here are a few things to think about. So one,
35:40
Speaker 1: in business, right, realize that your audience and or customers, clients,
35:47
Speaker 1: whatever you want to call them, understand their perception of value.
35:53
Speaker 1: Understand what they believe to be good value. Remember, seek
35:57
Speaker 1: first to understand, remember theory of mind. Understand how they think.
36:02
Speaker 1: Are you adding value to their problem, to their situation,
36:06
Speaker 1: to their life, to their quest for a healthy body,
36:10
Speaker 1: for a better home, or for whatever it is. Are
36:12
Speaker 1: you solving their problem? Are you meeting their need? Are
36:15
Speaker 1: you offering something unique? What is your unique selling proposition?
36:21
Speaker 1: In a bloody landscape full of people who do what
36:25
Speaker 1: you do or similar? Why would someone pick you? Why
36:29
Speaker 1: would they perceive that you are the person that they
36:33
Speaker 1: should invest in, or the business or the brand or
36:35
Speaker 1: the product. Why would they think that? Why would they
36:39
Speaker 1: think that? Give them a reason? So understand the psychology
36:43
Speaker 1: of value in that context. And remember, you know I
36:47
Speaker 1: always thought, why would somebody? Essentially, why would somebody pick me?
36:51
Speaker 1: Why would somebody pick me when there's so many people
36:54
Speaker 1: that do what I do and I can't make people,
36:58
Speaker 1: of course think better of me, and because that is
37:01
Speaker 1: out of my control. But what is in my control
37:04
Speaker 1: is how I treat them, how I serve them their
37:07
Speaker 1: experience interacting with me to an extent, that's in my
37:12
Speaker 1: control my words, my energy, my focus, my attention, the
37:16
Speaker 1: quality of what I do, my consistency over time. And
37:20
Speaker 1: when I put all of that together, hopefully I am
37:23
Speaker 1: creating something that, in a professional or a business context,
37:27
Speaker 1: is perceived as being worth investing in, is perceived as
37:32
Speaker 1: being valuable. So let's talk quickly about in relationships, which
37:37
Speaker 1: kind of insects with business like personal professional show people
37:40
Speaker 1: that they matter. Expressing appreciation and valuing others strengthens connections
37:47
Speaker 1: and creates deeper and deeper bonds. Showing people that they
37:51
Speaker 1: matter to you, that you value them, and when you
37:55
Speaker 1: value them, they're going to value you. Lastly, let's talk
37:59
Speaker 1: about values in the context of you, your personal growth,
38:03
Speaker 1: your journey. So maybe think about what your values are,
38:07
Speaker 1: think about take stock of your values. Your values are
38:10
Speaker 1: the things that matter to you most. So are you
38:14
Speaker 1: spending your time, energy, effort, skill, money, perhaps on what
38:19
Speaker 1: truly matters to you or are you chasing what looks
38:25
Speaker 1: good or what people think you should chase. Are you
38:28
Speaker 1: thinking for yourself? Are you living a life aligned with
38:32
Speaker 1: what you perceive to be valuable. What are my values?
38:36
Speaker 1: What do I value? And do I have an operating system,
38:41
Speaker 1: a health plan, an exercise plan, a career, a relationship model,
38:48
Speaker 1: a way of living and being and doing that's built
38:51
Speaker 1: around those values. Because when I live a life that's
38:54
Speaker 1: built around the things that are my values that I value.
38:59
Speaker 1: Now I'm an alignment. So maybe this week you might
39:06
Speaker 1: take a moment to reflect on what you value and
39:09
Speaker 1: how you might be providing value to the world, whether
39:14
Speaker 1: that's on a personal or professional level. And also you
39:19
Speaker 1: might open the door on how others see you. Remember,
39:24
Speaker 1: meta perception matter, accuracy, and what you're perceived. And this
39:29
Speaker 1: is not all just strategical or commercial, but what your
39:32
Speaker 1: perceived value might be to them. And if now putting
39:36
Speaker 1: in our business hat, you can create greater value for them,
39:40
Speaker 1: You can be of more value, of more service, of
39:43
Speaker 1: more worth to them, and you can increase some of
39:48
Speaker 1: the things you want to increase on planet You then go,
39:51
Speaker 1: you food the thoughts, See you next time.