The Brainy Business | Understanding the Psychology of Why People Buy | Behavioral Economics

Clutter has a negative impact on your brain. It can lead to disorganization, overwhelm, increased stress, and even health issues. That’s why organizing your brain and your surroundings is so important. This episode is about the benefits of organization in your life and how it can lead to positive outcomes such as weight loss, decreased stress, increased productivity, and clearing the way to smash through your goals. The benefits of an organized brain are really amazing, and I want to help you get there.  This episode walks through a bunch of tips and some of my favorite tools I use to keep organized. This includes a couple of great books that can help eliminate clutter from your physical and digital life, as well as the tools and systems I use to manage all existing commitments while building and scaling The Brainy Business. Tools discussed include: Focus mode on Word, Time Timer, Gmail’s Snooze feature, GANTT charts and how I use Trello to get it all done in an organized and sane way.  Before diving in, I want to tell you about a really cool article that was posted recently on Bloomberg. It’s called Top Jobs for the Next Decade Are Behavioral Scientist, Data Analyst. This is great news for the field, and I am totally not surprised as so many people have been reaching out with questions about getting degrees in behavioral economics or how they can pursue work in the field. More people are also finding the podcast and asking about working together. Look for an upcoming episode with my recommendations and resources for exploring this fascinating and growing field. If you have specific questions you would like included, hit me up on social media.  CLICK HERE FOR YOUR FREE DOWNLOAD! Show Notes: [01:49] If you want to be featured on the show – leave a review of the podcast in the app you listen to, and I may talk about you and your business in an upcoming episode. [02:25] This episode is going to cover a lot of resources and things you can consider as you work to organize your brain. If you are already on The Brainy Business list, you get direct links to everything related to each episode…as well as access to the super secret subscriber page with all the freebies. [03:44] Bloomberg recently came out with an article called Top Jobs for the Next Decade Are Behavioral Scientist, Data Analyst. So awesome! [04:05] So many people have been reaching out and asking questions about getting degrees in behavioral economics or how to pursue work in behavioral science. [05:14] When your brain is overwhelmed…which happens a lot quicker than you would think…worse decisions are made. An example would be the chocolate cake study. [06:15] Essentially, when the brain gets overwhelmed – even by a few extra digits – it makes worse decisions. [07:20] Your conscious brain’s 40 bits are bogged down with that big number. More things that would normally be handled by the conscious brain are now in the realm of the reward seeking subconscious brain. [07:44] Clutter also increases stress, makes it harder to focus, increases the likelihood you will procrastinate, costs time and money, and can keep you stuck in the past. [09:19] We are loss averse as a species, we don’t like to get rid of things. We want them “just in case” and the brain will make reasons for why it needs that extra stuff around. [09:48] If the “things” (physical, mental, emotional, digital) surrounding you aren’t well organized and are getting out of hand it is keeping you from reaching your goals. This is why the first step in the Brainy Mindset Course is to work on clutter. [10:10] Even if you aren’t consciously paying attention to the clutter, your brain knows it is there and it creates distraction. [11:02] The reverse is that the brain loves organization. Think about when you go on vacation or are looking at awesomely organized spaces. [13:10] Americans waste 9 million hours per day collectively looking for misplaced stuff – 30 minutes per person per day on miscellaneous stuff from keys to remotes to shoes and socks. [13:34] Clutter leads to procrastination, weight gain, stress…all kinds of things keeping you from your goals. [14:31] THE LIFE CHANGING MAGIC OF TIDYING UP by Marie Kondo. When people clear up the clutter in one area of their life they make huge shifts in other areas of their life. [16:08] You go throughout your house and make a huge single pile of everything in the category. You start with clothes – everything you own in one giant pile. Does it spark joy? [19:45] INDISTRACTABLE by Nir Eyal has great tips for eliminating digital clutter. [20:43] NO MORE NOTIFICATIONS - Changing the notifications on your phone is easy and SO freeing. It only takes a few seconds and can help you take control of your life, living in an organized style on your own terms. [22:32] You can also turn off email notifications.  [25:13] The next tool I’ve learned to love is “FOCUS MODE” from Word. If you need to write a lot of content…like me…you spend a lot of time in word and it is easy to get distracted. Focus blacks out everything except the document you are working on. [26:27] Your brain is constantly pulling focus and looking at other stuff. If you remove it from your sight, you really just…stop thinking about it. [28:26] Another thing I use to keep focused and productive is the TIME TIMER.  [29:33] Let’s say I want to commit to writing, instead of saying “I am going to sit and write…no distractions this time!” I say, I am going to write for 20 minutes. And set the timer…that feels easier to focus. [32:35] The SNOOZE function for Gmail. I don’t know if other email clients have this…but if they do you should absolutely use it if you can. The Snooze function allows me to determine when I want to tackle an item, and move it so it is out of my inbox and will only come back in at the set time. [35:20] If you’ve snoozed something more than twice, ask yourself, “Why am I not doing this? Does it really matter?” [36:06] A GANTT CHART is essentially a visual tracking system that lets you sort through your tasks and see what is upcoming. A GANTT chart is helpful because it allows you to see what is coming up and where you might have overlap. [38:10] Narrowing your goals, removing the clutter around them and then aligning your to dos with something like a GANTT chart can really help you. Splitting the big goal into its smallest components is one of the most critical steps [39:10] The BE Thoughtful notebooks will really help with this when they come out soon! FILL THIS OUT to get notified first. [39:20] Trello is awesome and it has totally changed the way I approach my days, my life, my clutter and my business. Take heed: there is a LOT of effort up front effort required to set it up properly so it does everything you want it to. It's very customizable, which is great, but it could quickly become a time suck if you aren’t ready for it.  [40:44] Remembering all the junk you have to do for routine tasks is keeping you stuck. Trello can help turn that into a process that reminds you of the next step so you don’t have to. [45:45] For those of you already signed up for the Brainy Mindset Course – I’ll be walking you through my boards and can create templates and things for you that are shared. It’s so valuable. The Brainy Mindset Course is starting now. Use the code BRAINY50OFF to take $50 off your registration and join us to tackle mindset! Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.  Links and Resources: Susie Barolo on Twitter Top Jobs for Next Decade Are Behavioral Scientist, Data Analyst The Brainy Business on Facebook The Brainy Business on Twitter The Brainy Business on Instagram Episode 32. The Overwhelmed Brain and Its Impact on Decision Making How Clutter Can Affect Your Health 5 Reasons to Clear the Clutter Out of Your Life How Clutter Affects Your Brain (and What You Can Do About It) 7 Ways Clutter Is Ruining Your Life 9. Loss Aversion: Why Getting New Stuff Is Not The Same: A Behavioral Economics Foundations Episode The Brainy Mindset Course Use the code BRAINY50OFF to take $50 off your registration and join us to tackle mindset! How Much Time Do You Spend Looking For Lost Possessions? The Life Changing Magic of Tidying Up by Marie Kondo Episode 78. How to Become Indistractible, Interview With Author Nir Eyal 3 Ways You Can Limit Everyday Distractions 51 Time Discounting: The I’ll Start Monday Effect – My Favorite Concept!: A Behavioral Economics Foundations Episode Time Timer Audible Countdown Timer Trello

I don’t know about you…but I am having a hard time believing that it’s 2020 already. 2019 was such an amazing year with so many milestones for The Brainy Business. This episode will be digging into the top content from 2019. Links to all of the articles and episodes are below along with a link to the post with the full list. My subscribers will receive all of these links along with over 40 freebies I’ve given away (if you want to be on the list, download any freebie -- including the Master Your Mindset mini-course -- and you’ll be automatically added).  I want to take a moment to thank you all for listening, subscribing, sharing, connecting on social media, and reaching out to let me know your wins and the behavioral economics concepts you have applied in your own businesses. These are some of my favorite messages to get – I truly love hearing from you. I’ve received messages from all over the world, including Poland, Romania, Spain, South Africa, India, Italy, Ireland, and more.  Wherever you are, if you love the podcast and behavioral economics, please do reach out through your favorite social app to let me know who you are. I love connecting with each of you, and it really is me responding. I’ll kick off this show with sharing the top countries that have downloaded the podcast and then move on to the top shows and articles, and I might throw in a few surprises along the way.  CLICK HERE FOR YOUR FREE DOWNLOAD Show Notes: [00:59] I talk about many milestones in this celebration episode 80. Celebrate! It’s More Important Than You Think. [01:39] You can also find everything here The Best of The Brainy Business: 2019. [03:58] The top countries downloading The Brainy Business begin with the US and are then followed by the UK, Canada and Australia.  [04:23] India has pushed past Germany to claim the number 5 spot. Brazil is still number 7 and Mexico retained its number 8 spot. The Netherlands has made its way into the top 10 claiming the number 9 spot, and South Africa rounds out the list.  [04:43] Ireland came in at number 11. [05:12] The top 10 states in reverse order begins with North Carolina at number 10, followed by Colorado, then Georgia, Virginia and Florida at number 6. The state with the fifth most downloads is Illinois, number 4 is New York, then Texas at number 3, Washington is number 2, and California is number 1. [07:07] The top 10 downloads were found by doing a sort of all the downloads of the podcast. [07:53] We begin the countdown with 51. Time Discounting: The I’ll Start Monday Effect – My Favorite Concept!: A Behavioral Economics Foundations Episode. [08:05] I also call this the “I’ll start Monday” effect, because it is the concept behind all our new diets, exercise plans, failed resolutions…as well as efforts to save more money, quit smoking and generally change behavior. [09:01] Changing behavior doesn’t have to be as hard as we make it out to be, and understanding time discounting is a big way to help combat that. [09:34] Two of the top 10 were analyses of businesses, including episode 42. Apple Card: A Behavioral Economics Analysis at number 9 and episode 73. Starbucks: A Behavioral Economics Analysis at number 5. [09:38] I used real world examples and talk about what top companies do in business that outline various concepts from behavioral economics and how you could use the same concepts in your own business. [10:33] Number 8 on the list was episode 59 on the Pain of Paying: Why The First Item In A Purchase Is The Hardest: A Behavioral Economics Foundations Episode. [10:44] This episode was part of a series that talked about partitioning as well, and how adding little barriers can impact behavior. [11:14] Getting someone to buy one thing is the hardest part, but once they have bought something it is easier to add on more items. This is why loss leaders are effective. [12:11] While we are talking about paying for things, I want to give a little shout out for The Truth About Pricing, episode 5, which was a top downloaded episode of all time, but didn’t quite make the top 10 in 2019. [13:11] The next episode is 62. Game Theory: Life And Business Are A Game…Do You Know The Rules?: A Behavioral Economics Foundations Episode. This was a really fun episode and so important for understanding negotiations and communication with anyone you know. [13:30] The big tip I will give from this is to understand the difference between playing to win…and playing not to lose. They are not the same thing and result in vastly different outcomes. [14:18] Next, we have episode 45, which was an Overview of Personal Biases, part of the 8-part series on all the biases, and episode 50 on Selective Attention Biases made the top 10 as well, it was actually the third most downloaded episode of the year. [15:23] Next is episode 61 on Color Theory: When It Comes To Color, This 1 Thing Matters More Than Anything Else. This was a topic a lot of listeners asked for and something that comes up so much in branding and marketing discussions. Colors absolutely do matter, but it might not be in the way you think. [16:42] The number two episode of all time is Episode 2 – The Top 5 Wording Mistakes Businesses Make this also has a related presentation which I gave several times in 2019. [17:05] The categories to avoid are: too literal, too much, too vague, too confusing and too boring. [18:02] Before I get to the most downloaded episode of all time and in 2019, a little shout out to episode 3, Do Lead Magnets Work and Do You Need One? Which was the 6th most downloaded episode of all time, but didn’t make the 2019 list. [19:06] The most downloaded episode of 2019, and the podcast in general, is the very first one, – Unlocking the Secrets of the Brain. [20:04] In this first episode of the podcast, I talk about behavioral economics in general, a little about my background and why I started the podcast, and how the brain works. [23:07] I want to give a little shout out for the content I created for CUinsight for all the credit union folks listening. My article 1 Word That Increased Sales by 38 Percent made their top 10 list for 2019 - woohoo!  [23:54] I wrote 27 articles for Inc last year, and expect to create a bunch more in 2020! [24:37] Number 11 on the most read articles on Inc is about counterfactual and prefactual thinking and How to Break the Negative Cycle of ‘What If’ Thinking. [24:53] I share a simple tip of incorporating the language of “next time, I’ll” into your life. [25:04] The importance of word choice also came up in the number 10 article, Why Rami Malek’s Choice of Self-Talk May Have Led to His Academy Award. [25:38] The next article is 3 Ways You Can Limit Everyday Distractions, which is based on insights from Nir Eyal’s book Indistractable. [26:32] The next article is Here’s How to Send a LinkedIn Connection Request to Someone You Haven’t Met Before Without Sounding Like Spam. It has some easy tips using their own algorithms to help you reach out in a way that makes people want to engage. [26:53]  The last release of the year has had a lot of traction already. These 5 Simple Concepts of Behavioral Economics Can Drastically Improve Your Marketing Efforts. This article is a summary of the top recommendations I give to my clients on how to include behavioral economics in their businesses. [27:28] Next, is called These Small Tweaks to Your Daily Routine Will Eliminate Unnecessary Mistakes and I was inspired to write it while I was traveling in London working with a client. [29:00] Number 5 is The Font Size on Your Price Tags Could Be Reducing Your Sales by 28 Percent. Here’s How to Fix It. The tips apply beyond physical price tags and are important for showcasing prices in any format (website, brochure, etc). [29:45] Effortlessly Increase Creative Ideas With These 4 Simple Brain Hacks is about priming and associations in the brain. [30:24] The third most read article is another new post from late December, called, Why You Should Ditch Your Flimsy, Paper Business Cards Right Now – this also gets into priming and brain associations, and is essentially outlining how the senses impact the way people think about your brand. [33:05] The second most read article on Inc is the first one I wrote for them! It’s called, 1 Simple Brain Trick That Can Help You Overcome Self-Doubt Forever This is very much in the mindset genre, and something I will work on with you in the Mindset Course. [35:52] The top content of 2019 with the most read article I wrote for Inc, which is called, A Starbucks Barista Asked Me This 1 Simple Question, and Using It May Be a Great Way to Boost Your Sales. [36:11] This article is about framing, and breaking free of the way we have always done things. [37:12] Asking a slightly different question can move the interaction in a much different direction. The Brainy Mindset Course starts soon! Use the code BRAINY50OFF to take $50 off your registration and join us to tackle mindset! Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.  Links and Resources: Episode 80. Celebrate! It’s More Important Than You Think The Brainy Business on Facebook The Brainy Business on Twitter The Brainy Business on Instagram Social Bee Podcast Episode 96 – the Psychology of Why People Buy – With Melina Palmer. Business Bros – Episode 167 – Melina Palmer (The Brainy Business) The Best of The Brainy Business: 2019 The Brainy Business In The News Episode 81. How to Finally Change Your Behavior (So it Sticks) Episode  14. Scarcity: Why We Think Less Available Means More Value: A Behavioral Economics Foundations Episode Episode 16. Framing: How You Say Things Matter More Than What You’re Saying: A Behavioral Economics Foundations Episode Episode 19. Herding: Come On And Listen…Everyone Else Is Doing It: A Behavioral Economics Foundations Episode The Brainy Courses Episode 11. Anchoring & Adjustment: The 1 Word That Increased Sales 38%: A Behavioral Economics Foundations Episode The Brainy Business Podcast Episodes Episode 68. Counterfactual Thinking: Why We ‘What If’ And ‘If Only’ (A Behavioral Economics Foundations Episode) Episode 71. Prefactual Thinking: How to Turn “What If” Into “Why Not” – Behavioral Economics Foundations Episode 78. How to Become Indistractible, Interview With Author Nir Eyal Episode 18. Priming: Why You Should Never Have A Difficult Conversation With Someone Holding An Iced Coffee: A Behavioral Economics Foundations Episode The Brainy Mindset Course Use the code BRAINY50OFF to take $50 off your registration and join us to tackle mindset!

In honor of the new year, today’s episode is about how to make behavioral change that sticks. Welcome to 2020 everyone! 2019 was an amazing year here at The Brainy Business, with 52 episodes released, more than 100,000 downloads in 150 countries, a brand new column on Inc.com (which already has 27 articles posted), a white paper on savings behaviors, two courses launched, and lots of engagement with all of you on social media. Next week, I’ll dig into all of my top content from 2019. Today, is all about behavior change and narrowing your focus, so you can accomplish what matters most. If you are trying to do too many things at once, you will stay stuck. And, your brain actually wants that. I also talk about the Moment In Time or the Fresh Start Effect (like beginning your new goal or exercise program at the beginning of the year). I also talk about Temptation Bundling, which is combining something you should do (but often neglect) with something you really want to do) to help motivate you. This episode will help you name and claim your goal whether you are using fresh starts or temptation bundling (or ideally both!) to get going. CLICK HERE FOR YOUR FREE DOWNLOAD Show Notes: [06:45] The first thing to do, and something I have been preaching to you for months, is to narrow your focus. [07:09] The brain can’t handle too many priorities. If you are trying to do too many things at once, you will stay stuck. [07:19] The human brain likes predictability, it builds your world based on what has happened in the past and it likes to know where its next reward is coming from. [07:51] If you don’t take the time to prioritize what really matters, your brain can keep hiding and keeping you stuck. [08:24] Would you rather look back 10 years from now and say, “I made a little bit of progress on a lot of things…but never really completed what I wanted to” or “I completed one thing at a time and built on each success”? [09:23]  Now that you understand the importance of limiting your priorities and goals to no more than three, we can talk about how you can set yourself up for the most success for actually achieving what you have set as your priorities. [09:46] There are many ways to tackle goals, and I'm going to share two of my favorites in this episode. [10:54] You can and should throw everything you can at your goals including the tactics of "moments in time" and "temptation bundling." [11:15] The "moment in time" is also known as the first start effect. This is exactly what you get at the beginning of the year (or decade in this case). [11:36] We humans are wired to look at new moments in time as a fresh start. This is a form of mental accounting. These time breaks allow you to look at yourself fresh. [12:27] We also create a new and distinct version of ourselves along with these fresh starts. [15:04] One thing that the fresh start does is it prompts you to stop and, essentially, look up.  [15:39] Fresh starts are the opportunity to stop and look around to reevaluate what you’ve been doing and decide if it's time for a change. [16:11] Anything and every day can be a fresh start. [19:00] Any moment is an opportunity to be better than you were the moment before – an opportunity to reinforce those three goals you are focused on. [21:51] Having an opportunity to step out of the everyday work and realign your priorities and make sure that you are still on track is a benefit to every business and individual. [22:33] This practice can help you to reinvigorate your dedication to your life and commitments, to see what is working and what needs to change. It keeps you tuned in with yourself and your goals. [22:45] Schedule quarterly appointments with yourself. [23:22] If you are someone who sells products or services that align with being better or positive change…you should know when people are most likely to be looking for you and your offerings. [23:40] At your office, align talking about change at times when people are already aligned for change like a holiday or New Year. [24:37] While milestone dates can be beneficial for forming new habits…they also are a key point where you might BREAK habits – for better or worse. [25:14] You can control this. Awareness is key. [26:11] I've talked about bundling tasks and habit stacking in the goals episode. [26:39] Temptation bundling is another way to motivate yourself to have positive behavioral change. You can combine doing something you really want to do with something that you know you should do. [27:19] The only time you get to do the reward is when you are doing the thing that you should do. [29:33] Two thirds of people would prefer to have their possessions locked up to keep them on track. Committing your goal to someone else means you are much more likely to keep it.  [31:09] The thing for you to do is think about what you wish you could do – or something where you tend to get distracted from your goals…and combine it so you can ONLY do it when it is helping you achieve your goal. [32:19] Combining the knowledge of these two methods: temptation bundling and fresh starts, are a great recipe for achieving those goals and resolutions in 2020 and throughout the whole new decade. Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.  Links and Resources: Master Your Mindset FREE mini-course The Brainy Mindset Course The Brainy Business on Facebook The Brainy Business on Twitter The Brainy Business on Instagram Articles by Melina Palmer on Inc. The Brainy Business In The News The Brainy Business Courses The Best of The Brainy Business: 2019 Episode 50. Selective Attention Biases Episode 51. Time Discounting: The I’ll Start Monday Effect – My Favorite Concept!: A Behavioral Economics Foundations Episode Episode 73. Starbucks: A Behavioral Economics Analysis Episode 42. Apple Card: A Behavioral Economics Analysis 1 Simple Brain Trick That Can Help You Overcome Self-Doubt Forever A Starbucks Barista Asked Me This 1 Simple Question, and Using It May Be a Great Way to Boost Your Sales Why You Should Ditch Your Flimsy, Paper Business Cards Right Now Episode 29. Resolutions and Keeping Commitments Episode 70. How to Set, Achieve & Exceed Brainy Goals Episode 67. How to Get (and Stay) Motivated Katherine L. Milkman Grit: The Power of Passion and Perseverance Creating Enduring Behavior Change The Fresh Start Effect: Temporal Landmarks Motivate Aspirational Behavior Episode 56. Mental Accounting: How To Make Your Money Math Work For You: A Behavioral Economics Foundations Episode Episode 34. Optimism Bias: The Good And The Bad Of Those Rose-Colored Glasses: A Behavioral Economics Foundations Episode 376: CEO Day – Vision Casting 377: CEO Day – Strategic Planning Holding the Hunger Games Hostage at the Gym: An Evaluation of Temptation Bundling

Merry and happy holidays to you all – whatever you celebrate or don’t, wherever you are in the world…I hope you are surrounded by joy, friends, family and everything else good as we close out 2019. Can you believe it’s almost the end of another year? We’ve hit a milestone here on the podcast with 80 completed episodes. So much to celebrate – and as you’ll learn today, it's very important to celebrate…everything. Yes, everything. Big, small, momentus or seemingly mundane…celebration is great for our brains! This is based on a lot of the foundations I shared with you in The Brainy Benefits of Gratitude.  Being grateful breeds happiness. It also makes people more creative and even sleep better. Being grateful makes the people around you happier, you perform better in life and work, and have better memory retention and better relationships. It’s an all around great thing. Celebrating is very similar to that. Celebrating allows you to slow down – be thoughtful – and reflect on the great things you have done. On the achievement in front of you.  Many of us achievers who want to achieve big things in this world, and I’m guessing that’s you if you have chosen to listen to this podcast, we tend to keep our eyes on the prize. We haven’t “made it” yet, and so every milestone along the way is just a check mark on the road to greatness. But it needs to be more than that. We need to celebrate the big and small accomplishments and the things that we are so very grateful for. In this episode, I kick things off by sharing some of the Brainy things that I am grateful for and celebrating.  Show Notes: [04:07] Our brains choose to do what has felt good in the past. Our experiences are shaped by our actions…not the other way around. [04:31] When we celebrate and mark things in our memory as achievements that make us feel good our brain will look for more of those achievements to boost ourselves up and create a more positive outlook on life. [04:42] “Celebrations are the punctuation marks that make sense of the passage of time; without them, there are no beginnings and no endings. Life becomes an endless series of Wednesdays.” David Campbell [05:24] I love celebrating and have always been able to find the silver linings as a default. [05:58] If you have employees, celebrate them at their annual review. I encourage my employees to keep track of wins when they came in. This makes a huge list of accomplishments to begin the annual review. [07:19] The BE Thoughtful Notebook is coming out in 2020! Want one? Get on the waitlist.  [08:03] This was an amazing year with a lot of great things to celebrate. [08:19] Highlights include: The Brainy Business blew past 100,000 downloads with listeners in over 150 countries. I launched two courses that both made money on their first time out, and we already have people signing up for the 2020 courses.  [09:44] I was offered and started a column with Inc.com; went to visit Texas A&M and started doing research with them (so cool), I spoke to audiences around the country and led workshops abroad. I completed my masters in behavioral economics with a published white paper through the Filene Research Institute and walked at a graduation ceremony. I got to go back to Rome and show my husband where I used to live and we wrapped up our visits to all 50 states. There were amazing partnerships and connections and possible working relationships slated for 2020...so many cool projects underway! [10:11] All this amidst a much more balanced family life and bringing some exercise back into the mix, running a 5k in New York with my husband on Thanksgiving, and seeing the Macy’s parade in person! [10:38] What can you celebrate from 2019? Celebrate those little wins too. It's not all about the big stuff. Share with me on social media. [12:08] My dad is a captain for American Airlines. He has flown there for nearly 35 years. His last flight will be on December 19th, and I'll be on it. [13:43] Dad, I don’t know if you will hear this – I guess this is a test of who really listens to the podcast – ha! – but I am so proud of you and honored to be able to celebrate with you. Congratulations. [14:02] I want to wrap up the year and this mini episode (80 episodes of The Brainy Business podcast!) by saying, thank you to you. Thanks for listening. Thanks for making this year amazing. Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.  Links and Resources: The BIG Brainy Bundle ending SOON! Use the code BRAINY100OFF by December 31st to get all three pieces (a $1200 value) for just $599. I can’t wait to have you join us in 2020. Master Your Mindset FREE mini-course Episode 76. The Brainy Benefits of Gratitude Episode 16. Framing: How You Say Things Matter More Than What You’re Saying: A Behavioral Economics Foundations Episode Why You Should Celebrate Everything Throw a Party! Why It’s So Important to Celebrate 3 Reasons Celebrating Your Many Accomplishments Is Critical to Your Success 3 Reasons Why It’s Important to Celebrate Yourself Every Day Episode 79. Why Our Brains Love Nostalgia & Traditions (And How To Incorporate Them Into Your Business Strategy) Episode 78. How to Become Indistractible, Interview With Author Nir Eyal BE Thoughtful Notebook The Brainy Business on Facebook The Brainy Business on Twitter The Brainy Business on Instagram

Holidays are a time filled with traditions and reflecting upon the past, remembering the good ol’ days or reliving your childhood…while creating new memories with (and for) those around you. This episode is all about nostalgia and traditions, and it fits in perfectly with the holiday theme. As we dive into the topic of nostalgia, I’ll explain nostalgia’s Swiss origins in the 1680s and the root of the concept. I talk about how it’s not negative or pain inducing, but it can be triggered by a sad or tragic event.  There are a lot of benefits of nostalgia and thinking about the good ol’ days. It can help increase self-esteem, feelings of belonging, growth on a psychological level, and even make people act more charitably. It can also be a powerful technique for marketing and advertising.  People are most likely to become nostalgic at major transitions in life. This is why a midlife crisis is a time where people buy the car they always wanted when they were in high school, or go back to visit their childhood home. Marketing or advertising for these sorts of things at the right time can trigger nostalgia and action in a buyer of a certain age. I’ll be talking about all that and why our brains love nostalgia and tradition while also giving a few tips about how to use this in your business – whether it’s at the holidays or any other time of year. Show Notes: [02:22] The concept of nostalgia was first introduced in the 1680s. Being far from home caused Swiss soldiers to have all kinds of symptoms. [02:40] The root is from the concepts of “return home” and “pain.” [02:55] Everyone can feel nostalgia, and it's not negative in and of itself. [03:11] A sad event may cause us to think about the good old days. There are actually many benefits of nostalgia. It can help increase self-esteem, and feelings of belonging, and encourage psychological growth. It even helps us to remember that our lives can have meaning and value. [03:44] It's also a powerful technique for advertising and marketing. [04:00] Our bodies are made up of constantly changing atoms. Our makeups change every five years.  [05:23] Sometimes what feels like a tradition is actually an assumption from the observer. [05:49] Ask a question. If you've always done something a certain way ask why. (Even if it doesn’t appear broken...ask.) [06:09] Nostalgia helps us remember our lives have meaning and value. Most of our best memories are from the ages of 10 to 30. This span is called the reminiscence bump. [06:26] This period of time is important, because it's heavily linked to the time that we form a sense of ourselves. [08:45] Children are quite sensitive to effort, and with good reason. Actions speak louder than words. [09:17] Children can differentiate between fantasy and history, evaluate the strength of evidence and prefer claims with scientific framing. Children in many cultures are less likely than adults to appeal to supernatural explanations for unlikely events. [10:09] Feelings of nostalgia are most likely to come up whenever you feel sad or lonely. Nostalgia – remembering important people in your life or key moments – can help you to feel better about yourself. [10:51] People are also most likely to become nostalgic at major transitions in life. This is why a midlife crisis is a time where people buy the car they always wanted when they were in high school, or go back to visit their childhood home. Marketing or advertising for these sorts of things at the right time can trigger nostalgia and action in a buyer of a certain age. [11:16] Finding a trigger that can make someone feel nostalgic can make them feel better and more endeared toward your product. Incorporating all of the senses is also important. [13:03] Studies have shown nostalgia physically warms you up! [13:21] Our brains are also wired to make memories much better than they actually were. Our nostalgic brains build memories up to be better than anything that could possibly be. [14:33] Our brains are nostalgic and brands can and should use this in advertising and marketing when it makes sense to do so. The right memories need to be chosen and triggered properly. Get as close as possible to the context and emotion. [16:32] When you feel nostalgic, ask why that experience meant so much to you. [17:03] The brain does things based on what has felt good in the past. [17:44] There are four key elements of a traditional ritual. This includes 1) a strictly defined time and place, 2) a set of features that are repeated year after year, 3) another set of features that are different from year to year, 4) and a lot of symbols. [18:42] It's psychologically important for the event to contain a lot of sensory information. [19:53] Having enjoyed a happy set of childhood traditions makes parents more likely to give you support and enact effective rituals for their children. It has actually been shown to create more mentally strong kids. [20:34] Traditions have been passed down through story or ritual in cultures all around the world for a reason. They teach us morals and what is important. [22:24] Brands like Macy's have holiday traditions, and there are even traditions in the brand of food we buy. [25:22] I have loved learning about some of your traditions over the last couple of weeks – and not surprisingly, this is something people love to share about because…we love our traditions! [26:08] What is your favorite holiday tradition and why is it important to you? Will you tell me about it on social media? [26:28] For your business, it is a good time to ask, is there something you can do to be part of a tradition at the holidays or any other time of year? How can you be part of a ritual?   Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.  Links and Resources: The BIG Brainy Bundle ending SOON! Use the code BRAINY100OFF by December 31st to get all three pieces (a $1200 value) for just $599. I can’t wait to have you join us in 2020. Master Your Mindset FREE mini-course Why Do We Feel Nostalgia? - Clay Routledge Why Do We Feel Nostalgia? Why Children Really Believe in Santa – the Surprising Psychology Behind Tradition Why Do We Experience Nostalgia? Episode 24. Vision Does Not Happen In The Eyes, But In The Brain – On The Sense of Sight: A Behavioral Economics Foundations Episode Episode 25. Why Burnt Popcorn Has Derailed So Many Meetings – On The Sense Of Smell: A Behavioral Economics Foundations Episode Episode 26. Why You Actually Taste With Your Nose – On The Sense Of Taste: A Behavioral Economics Foundations Episode Episode 27. Did You Hear That? – On The Sense of Hearing: A Behavioral Economics Foundations Episode Episode 28. Why Picking Something Up Makes People More Likely To Buy – On The Sense Of Touch: A Behavioral Economics Foundations Episode Why Do I Get Nostalgic? That bittersweet longing for the past can have an important impact on the present. Advertising to Bilinguals: Does the Language of Advertising Influence the Nature of Thoughts? Episode 68. Counterfactual Thinking: Why We ‘What If’ And ‘If Only’ (A Behavioral Economics Foundations Episode) Episode 78. How to Become Indistractible, Interview With Author Nir Eyal Why We Love Traditions, According To Science Episode 19. Herding: Come On And Listen…Everyone Else Is Doing It: A Behavioral Economics Foundations Episode Episode 73. Starbucks: A Behavioral Economics Analysis The Brainy Business on Facebook The Brainy Business on Twitter The Brainy Business on Instagram

I am so beyond excited to introduce you to Nir Eyal, author of the fantastic new book Indistractable, which I have mentioned a couple times on the podcast already because..well...I haven’t been able to contain myself! I also wrote about some of my learnings from his book in an article from my Inc. column. Nir is awesome, and he was so engaging to talk to. His writing has been featured in Fast Company, Entrepreneur, Forbes, TechCrunch, The Harvard Business Review, Psychology Today, Time and The Huffington Post to name a few. You may have heard of his first book, Hooked, which became an international phenomenon, loved by everyone from Silicon Valley and beyond. He’s taught at Stanford and sold a couple tech companies…I could list the accolades for ages, but I think you get the idea. Nir is awesome and I can’t wait for you to meet him as we talk about brains, goals and being Indistractable. So without further ado, Nir, welcome to The Brainy Business podcast! CLICK HERE FOR YOUR FREE DOWNLOAD! Show Notes: [03:10] Nir calls himself a behavioral designer. He uses consumer psychology and behavioral economics to change customer behavior through the technology that we use. As well as helping people shape their own behavior by understanding their cognitive characteristics. [03:41] His first book Hooked was all about how to build habit-forming products and create habits. Indistractable is about how to break habits and how to make sure we can get the best out of these technologies without letting them get the best of us.  [04:24] Nir writes because he wants to know the answer. With Hooked, he wanted to uncover the techniques that tech companies use to make their product so habit forming. He wanted to allow other industries to use these techniques to help form healthy habits.  [05:40] He wrote Indistractable, because the products can be so well made it's hard to stop ourselves from using them. That was the situation he was in.  [06:40] He was using an activity book with his daughter. There was a super power question, and he missed his daughter's answer, because he was looking at his phone. She actually left and went outside to play.  [07:41] He decided to read everything that was written about this problem. The answer in all the books was to get rid of the tech. So he did. And...he discovered that he still got distracted.  [08:35] This is when he realized the problem was much deeper than the technology. The technology was a proximal cause or symptom of a larger dysfunction. [09:48] He decided to find an answer that actually worked. We can find ways to get the best of these tech tools without letting them get the best of us. [11:07] The opposite of distraction is traction. [12:53] The best place to understand distraction is to learn its opposite. Traction is an action that pulls you towards what you want to do. A distraction pulls you away from what you want to do. [15:03] Tech tools aren't bad if you use them on your schedule. We can turn anything into traction as long as we make time for it. [16:42] Nir wanted to get down to the root cause of identifying distraction and knowing what to do about it. [17:11] Find out what prompts towards traction or distraction. What are the triggers?  [18:14] Our most common triggers start from within. The real disease is that we are uncomfortable with our emotions, so we let ourselves be distracted. [19:23] Why do we do what we do? Our brain gets us to act by spurring discomfort.  [20:25] Motivation is spurred by a desire to avoid discomfort. [21:11] We use distraction as psychological pacification. Time management is pain management unless we learn tactics to cope with discomfort. The first step is to master these internal triggers. [22:50] People can become addicted to anything from exercise to news. It's not about the behavior. It's about what we are escaping from.  [27:46] We were not designed by evolution to be happy all the time. Constantly striving and craving is what helped our species to progress. [28:21] We need to channel our uncomfortable sensations towards traction (not distraction). [29:50] Step two to becoming indistractable consists of three steps reimagine the task, reimagine the trigger, and reimagine our temperament. [36:23] Our brain craves simple answers which always get us into trouble. That's what's happening with the boogey man of distraction.  [39:04] Gum sales have gone down since the iPhone has come out. We don't need gum to distract ourselves. [40:01] If it's something you are serving instead of it serving you...it's time to disconnect.  [41:06] Step number three is to hack back the external triggers. Turn off phone notifications. Hack back the open floor plan office.  [42:31] Every copy of Nir's book comes with a sign you can put on your monitor that says that you are currently indistractable.  [44:09] Nir's wife wears a concentration crown to let her daughter know that she is working.  [44:48] The fourth step is to prevent distraction with pacts or commitments to stay on track.  [46:05] Find one thing that you can do to start the journey to become Indistractable. [48:00] The antidote to impulsiveness is forethought.  Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.  Links and Resources: The BIG Brainy Bundle pick the Big Brainy Bundle and use the code BRAINY100OFF by December 31st to get all three pieces (a $1200 value) for just $599. I can’t wait to have you join us in 2020. Master Your Mindset FREE mini-course Indistractable: How to Control Your Attention and Choose Your Life 3 Ways You Can Limit Everyday Distractions How This Year's Nobel Prize Winning Research in Economics Can Help Your Business Episode 15: Availability: Why People Are More Likely To Get Flood Insurance Right After a Flood: A Behavioral Economics Foundations Episode Episode 21. Habits: 95% Of Decisions Are Habitual – Which Side Is Your Business On?: A Behavioral Economics Foundations Episode Episode 22. The Power of Habit Episode 70. How to Set, Achieve & Exceed Brainy Goals Episode 13. Adjusting Your Mindset: Tips To Overcome Imposter Syndrome And More: A Behavioral Economics Foundations Episode Episode 67. How to Get (and Stay) Motivated Episode 29. Resolutions and Keeping Commitments Episode 27. Did You Hear That? – On The Sense of Hearing: A Behavioral Economics Foundations Episode Nir & Far Indistractable Nir Eyal on Twitter

“How do I raise my prices?” is a question I hear all the time. You all know that pricing is my jam. In fact, I’ve even created a Brainy Pricing Course that has a module on raising prices. In a recent questionstorming session with my current Brainy Mindset Course group, they asked to focus on getting past mindset blocks about raising prices. That is one of many reasons this episode seemed particularly fitting right now. It is all about raising your prices and learning to get past your own mindset blocks that have always tripped you up in the past (so you can move past them next time).  If you are wondering if you can raise your prices...the answer is probably yes. As I’ve said many times, it’s not really about the price. It’s about what comes before the price and the framing of that price. I’ll get into the importance of understanding your why and the context of the price too. I talk about scarcity and how it can actually validate a higher price. I talk about why it’s okay if raising your prices is scary. It is for everyone. It’s how you raise the price and why that matters. I also share a secret tip to convey your price to your clients with confidence just like you were telling them the time or the weather.  This episode should help give you the tools and encouragement to confidently make a pricing strategy plan. If you do want more pricing help, I have an awesome year end special where you can get the Briany Pricing Course plus the Virtual Workshop Bundle, and you get the Brainy Mindset Course completely free! The BIG BRAINY BUNDLE is a $1200 value for $699, and if you use the code BRAINY100OFF you can get the whole thing for just $599, or 50% off – but that deal is only through December 31 so don’t wait. Show Notes: [04:13] If you wonder if you could or can increase your prices or raise your rates…the answer is probably yes. [04:28] Pricing isn't about the price. It's about everything that comes before. If you can't raise your rates the block is often internal. [05:28] When you are working in massive volumes, small changes that are not going to be noticed much by consumers can have a huge impact on the bottom line. [05:53] Another way to look at profitability and prices is to understand what your costs are and how it all ties into the baseline question of why you want to increase the price. [06:48] Before you go through the process of raising your prices, it's important to know that you definitely could do it. [07:09] The next phase is: should you raise your prices and discovering what you are trying to accomplish. [07:18] The reason you want to raise the price is important to understand as you tackle the fears you have about raising prices. [07:36] Someone in the service industry may want to raise their prices because they're too busy. The brain will try to scare you and ask “what if I lose clients?” The answer is, it's okay to lose people because you're trying to reduce your workload. [08:28] The increase in revenue should make up for the people who leave. [08:58] Scarcity helps validate a higher price, so don't always be available. [09:08] Another reason to raise your prices is if you're not making enough profit. You need to sit down and understand your whole strategy behind pricing before you make the adjustment. [10:15] When raising your prices, know that nothing is for everyone and it's okay not to be a fit for someone anymore. [10:52] Don't tell them they can't afford you. It's their job to decide they don't want to work with you anymore. [11:10] People get more value from things that they pay more for. [11:48] Think about jeans and framing. We believe are expensive jeans are better than our cheap jeans. [12:27] Once you know you want to raise your prices and why, don't over explain and draw attention to the fact that you are doing so. [14:21] Apologies aren't necessary when raising your prices. Most people will pay the price, and some people will move on. [16:52] Some of my favorite questions to ask clients: What would happen if you charged 10 times more? What would make people happy to pay 10 times more? [18:18] If your campaign is all about price people will notice. [19:14] You can also charge new clients the new rate and phase in the new pricing for existing clients. [21:02] This can also be a chance to let a few problem clients go. Think through what you will do when people ask for discounts or threaten to leave.  [22:33] Look at the competition and understand what others charge, but don't let it dominate your space. [23:10] Have a plan and understand some people won't want to pay your new rates. That's okay. They're not your people anymore. [26:00] You need to understand what is on the shelf next to your product. Consider the context of the price and what people will compare it to.  [27:08] Consider search terms your ideal client will use, where your more expensive item can be showcased as the best choice.  [28:32] High anchors can make something look more affordable. [29:01] Everyone hates raising prices. It's scary. Something as simple as how you present your price on a sticker can impact the sales. [30:19] Just because raising your price is scary that doesn't mean that it's wrong. [31:07] It isn’t about you – it is about the customer and what value you provide for them, which is done through proper strategy and framing as you set and raise prices. [31:31] You need to say this new price so many times that your brain automatically thinks of the new price as the right number and you can say it as if you are saying the weather or time of day. [32:31] Confidence is the number one important thing when talking about pricing. Use a confident and friendly tone and ask for the sale every time. [34:22] If you want to raise your prices, you absolutely can. You always can, and it is best to have a plan to make sure you are doing it for the right reasons and you know how you will react if you do get questions or pushback. Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.  Links and Resources: The BIG Brainy Bundle use the code BRAINY100OFF by December 31st to get all three pieces for just $599 (50% off!) I can’t wait to have you join us in 2020. Master Your Mindset FREE mini-course Episode 43. A Guide for You to Create a Brainy Brand Episode 47. A Behavioral Economics Analysis of Costco The $40,000 Olive: How Entrepreneurs Can Spend Time Saving Money Melina@TheBrainyBusiness.com Episode 16. Framing: How You Say Things Matter More Than What You’re Saying: A Behavioral Economics Foundations Episode Episode 11. Anchoring & Adjustment: The 1 Word That Increased Sales 38%: A Behavioral Economics Foundations Episode Choosing a Pricing Strategy for Your Small Business Is Daunting. Here's How to Choose the Right One The Font Size on Your Price Tags Could Be Reducing Your Sales by 28 Percent. Here's How to Fix It Episode 19. Herding: Come On And Listen…Everyone Else Is Doing It: A Behavioral Economics Foundations Episode Episode 31. Mirror Neurons: A Fascinating Discovery From A Monkey, A Hot Day, And An Ice Cream Cone: A Behavioral Economics Foundations Episode

Happy Thanksgiving! This episode is coming out the day after Thanksgiving, also known as Black Friday – a day of crazy deals and holiday shopping (which I have written a few articles about recently on my Inc column) including, Why Black Friday Is the Perfect Holiday Sale According to Neuroscience, Why Year End Is Actually a Bad Time to Send Gifts to Clients, and Why Offering a Deal at the Holidays Isn’t Right for Every Business and Should Always Be Done Thoughtfully. I’ve also been thoughtful about a year-end deal from The Brainy Business - and we’re having one! In honor of this episode, it will be called the Gratitude Discount (details below). Last year at this time, episode 23 was all about reciprocity and the benefits that come from giving gifts. While today’s episode is about gratefulness, there is a reason I brought up last year’s reciprocity episode to kick us off today. Gratefulness and reciprocity have an important thing in common…a tie that can bond them together…which is a feeling of happiness and joy.  Doing things for others, giving things away, can help you to feel happier. And, as you learned in that episode on reciprocity, people want to give something in return; they can feel good from receiving AND from giving. It creates a nice virtuous cycle that I like to extend beyond the holiday season…though this is the perfect time of year to talk about this sort of thing. Reciprocity is the act of helping someone else to be a little happier. Giving away things, even in business, needs to be genuinely about that thing and not what you will get back. This episode explores how our brain filters for gratitude and how those principles can be applied in life and business.  Show Notes: [02:07] Check out episode 23 on reciprocity (fab favorite!).  [03:25] Gratefulness and giving can help us feel happier. [04:17] Giving away things, even in business, needs to be genuinely about that thing and not what you will get back. [05:13] Dan Gilbert shares what really makes us happy in his TED Talk. He found our brains systematically misjudge what will make us happy.  [06:29] Studies found that a year after winning the lottery or becoming a paraplegic people had the same happiness levels.  [07:11] People don't know what will make them happy. One of the most important things the human brain does is allow us to synthesize the future. [07:55] Natural happiness is a product of getting what you want. Synthetic happiness is what we get when we DON’T get what we wanted. [08:35] Synthetic happiness – not getting what you want but still being happy about where you are – is just as enduring and every bit as real to the brain as if you got exactly what you wanted (or thought you wanted). [08:57] We really and truly do create our own reality, and understanding how your brain looks at these situations can help you to be happier through a filter of gratitude. [10:30] Our brains reinforce our decisions.  [11:27] You can be grateful and appreciate things and have them make you happier even if you don’t remember going through the process before. [11:55] There is such a thing as too much choice. “Freedom to choose is the opposite of happiness.”  [14:31] Not getting what you want can make you just as happy – or happier – than if you had gotten what you set out for. Synthesized happiness is the same as natural happiness. [14:59] Lots of choice and opportunity to ruminate are a recipe for unhappiness. [15:16] Gratefulness comes before happiness. Gratitude is tied to happiness and helps people feel more positive emotions. [16:42] The benefits of gratitude filtering can impact all areas of life in a positive way. [17:34] When you are “filtering for gratitude” as I call it, you are resetting the way your subconscious is looking at the world around you – encouraging it to find good things happening so you will have something to write about at the end of the day or week. [18:08] Students who hand wrote a letter of gratitude had a huge boost in their happiness. [19:27] Our brains pay attention to what we write down, and it allows us to slow down and be thoughtful. [20:26] The BE Thoughtful Notebook will be released in early 2020. Get on the list! [21:01] Gratitude can also improve relationships. Sharing the good makes it easier to share the bad.  [22:11] Do you want to be happier? Do you want to sleep better and be more creative? Do you want to make those around you happier, and increase performance on the job and off? Do you want better relationships and memory retention? [22:27] Then it's time to filter for gratitude and start writing down what you are grateful for. [22:49] The year end deal! Claim your spot and get discount pricing before it goes up at the end of the year!  [26:09] If you get the pricing course and workshop bundle before the end of the year, which is only $699…you get the Brainy Mindset Course FREE! Use code BRAINY100OFF to get it for $599! Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.  Links and Resources: Here's Why Black Friday Is the Perfect Sale, According to Neuroscience Holidays Can Be the Worst Time to Send Client Gifts, According to Research. Here's What to Do Instead Does Your Business Need to Offer Holiday Deals? Contrary to Popular Belief, Maybe Not Episode 23. Behavioral Economics Foundations: Reciprocity Daniel Gilbert The Surprising Science of Happiness Dan Gilbert TED2004 Stumbling on Happiness Episode 75. The Littery – Interview with CEO Michael Manniche Episode 9. Behavioral Economics Foundations: Loss Aversion What Does It Take To Be Grateful? In Praise of Gratitude 5 Reasons Writing by Hand Is Good for the Brain and for Well-Being 4 Benefits of Writing By Hand for National Handwriting Day Three Ways That Handwriting With A Pen Positively Affects Your Brain 9 Incredible Ways Writing By Hand Benefits Our Bodies And Brains How Arianna Huffington, Tony Robbins and Oprah Winfrey Use Gratitude as a Strategy for Success Successful People Do This at the Beginning of the Day—Do You? BE Thoughtful Notebook Gratitude Discount Claim your spot and get discount pricing before it goes up at the end of the year! Get the pricing course and workshop bundle before the end of the year for $699 and get the Brainy Mindset Course FREE! Use code BRAINY100OFF to get an additional $100 off and get it all for $599!

Litter is found just about everywhere you find people. Discarded wrappers and dropped pieces of paper aren’t meant to be cluttering up our parks, running trails, and sidewalks. Yet, litter is everywhere. It’s a problem that hasn’t been solved. Today’s guest is someone who looked at this problem and used intuition and research to create a solution.  I am so excited to have Michael Manniche, CEO and founder of The Littery as my guest. When I learned about The Littery in a post on LinkedIn, I knew instantly it was a perfect example of behavioral economics being used to create a business to help the planet and people from all countries living on it by turning litter…into lottery tickets. In today’s interview, Michael shares how he first invented the name (it contains the problem and the solution). Michael has always felt that litter is totally unnecessary. He also understood that litter was a behavioral problem. The solution would need to be something strong enough to change that behavior. He then shares his research and how he has built a business model that pays people prize money to stop littering. This is a great example of how behavioral economics can be used in business and in making the world better.  Show Notes: [03:27] The problem and the solution are in name The Littery. (“litter” + “lottery”) [04:07] Michael has always felt that litter is totally unnecessary. [04:52] He wanted to find a motivation strong enough to change the bad behavior of littering.  [05:48] Lotteries have been around for over four thousand years and all over the world.  [07:44] Michael had a theory that a lottery incentive could stop littering. He did a test in his home country of Sweden and the results were better than he expected.  [09:14] It's actually incredibly easy to change behavior with the right driver or motivation.  [11:31] To test the concept, Michael went to a movie theater. They had students measure litter on the floor, in bins, and for correct sorting.  [14:07] Patrons were offered an opportunity to win €5000 or free movie tickets if they put their trash in the correct place.  [15:41] After one month, across four locations, the litter in the bin was now 100% and correctly sorted!  [19:35] The success of the test encouraged Michael to leave his job, get investors, and start his company. [20:29] You put an app on your phone. When you open a smart bin and throw something in, you get a digital lottery ticket sent to your phone.  [21:38] It's also a goal to sort recyclables correctly. There is a camera in the bin that checks the sorting process. You don't get a ticket if things aren't sorted correctly.  [23:33] The AI and image recognition was more difficult than Michael thought it would be. The lighting and things have to be exactly the same as it would look inside of a bin.  [30:02] He incorporated in Latvia (and moved to Sweden to support his dream), because he had Latvian investors.  [31:02] The next phase will be piloted in the Paris area. In the future they will use the city litter contract money to purchase the bins and pay the lottery prize money.  [32:47] The business model depends on procured contracts. Having a new solution is a challenge for procurement. This stage they are also raising funds to help finance the pilot programs.  [34:52] Some partners include a large waste management company and Coca-Cola.  [35:33] 10% of earnings will go to charity. Winners can also donate to their charity of choice.  [41:01] Optimism bias and framing comes into play when you think about how picking up trash can give you a chance to win a lottery.  [42:14] Now, when Michael looks at a cigarette butt on the ground, he sees a lottery ticket. Hopefully everyone will have that same opinion soon. [44:31] Humans want to behave as the norm. We are also prone to enjoy competition. Michael has incorporated many of these things into the app.  [46:35] If anybody wants to invest reach out to Michael.  [49:02] Michael is learning that behavioral science is super intriguing.  [50:35] Using incentives to influence the larger group is the plan.  [51:41] “When litter hits the bins everybody wins.” Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.  Links and Resources: The Littery Behavioral Economics Group Episode 16. Behavioral Economics Foundations: Framing Episode 36. Behavioral Economics Foundations: The N in NUDGES – iNcentives Episode 39. Behavioral Economics Foundations: The E in NUDGES – Expect Error Episode 34. Behavioral Economics Foundations: Optimism Bias Episode 23. Behavioral Economics Foundations: Reciprocity Episode 21. Behavioral Economics Foundations: Habits Episode 19. Behavioral Economics Foundations: Herding Episode 8. What is Value? Episode 9. Behavioral Economics Foundations: Loss Aversion

It’s that time of year when everything starts to speed up. We all have so much to do for our businesses and personal lives...how can we get it all done? This is the perfect time to talk about your brain on time pressure as we head into Black Friday and Cyber Monday deals and limited time offers at every turn.  You may be considering if you should do a year end sale or offer in your business, or maybe you love taking advantage of the deals—or want to know why you can’t stop yourself from a deal sometime. Whatever the background, we all can learn about our brains on time pressure. And it isn’t just buying decisions that are impacted by this, which I will get into during the episode. You also have other impacts within your work and personal life where your precious commodity of time is limited and impacting your performance.  Think about it. If you had all the time in the world to make a decision…what would you do? How would you go about it? I discuss time pressure and how it impacts you as a consumer. Then I will discuss some ways to think about using time pressure in your promotions and offerings, and finally, some ways to think about how it impacts your actions in life and business. CLICK HERE FOR YOUR FREE DOWNLOAD! Show Notes: [03:46] If you had all the time in the world to make a decision, what would you do? [03:59] You would ideally be able to evaluate every important feature and aspect against each other, and devise a system for ranking values. [04:39] Trying to consider every facet and every decision means you never actually make a decision. [05:01] We need to structure our decisions properly and only consider what matters. The subconscious brain has to make a lot of those decisions because the conscious is too slow. [05:47] The subconscious is heavily influenced by rules and concepts of personal biases and that doesn't always lead to the best results in life and business. [06:03] Limited quantities, opportunities and time are all closely tied to value in the brain. [06:44] When there is plenty of time available, we might be calmer and the conscious has some time to think and process. But time pressure? Move over conscious! You’re too slow and I got this down. [07:06] Studies have found people are less creative when they are under time constraints. They also defer making choices at all and if forced to make a choice, it's not the best one.  [07:25] Time pressure is a form of stress. [08:24] How time pressure affects you as a consumer. People buy more during the holidays. [09:34] When the brain is overwhelmed, the subconscious takes over and that can negatively impact your decisions. [09:48] Studies show that the things the brain focuses on when making decisions shift and can actually reverse when time pressure is applied. [10:03] When there is plenty of time available, people become risk-averse. When pressure is applied, we become loss averse and FOMO takes over. [10:17] Time pressure can encourage people to buy an extra item or get something “just in case” especially when paired with a discount or benefit of some kind. [10:42] Have a plan and a list if you have regrets about overspending after time discounted shopping. [11:19] Make a list of everyone you want to shop for. List of dollar amount you want to spend on each person. Run this against your total budget for the holiday to make sure you are in alignment and make any necessary edits. [12:12] Having a list makes it easier to hold yourself accountable to a plan. [13:44] It's good to set up rules when you are in a cold state so you are prepared when you get into the hot state. [15:28] Having any check in point and taking a moment to breathe can help you determine if this thing you are interested in is truly a great deal for YOU at this moment. [16:16] Making promos and offers. It's important for most businesses to have promotions and offers at some time or another. [16:28] Some ways you can incorporate time pressure in your offers is to have a discount or sale or gift that is only available until a certain date or time. [17:04] Countdowns are very effective in showcasing a deadline and the time pressure. [18:03] Another way you can look at time pressure is with a limited quantity. [19:03] Look around at what makes YOU want to act. When have you bought something you didn’t realize you were ready for? [20:33] It's best to test and find out what works for your business. Time pressure can almost always be effective when used properly. [20:59] Don't feel like you have to do a Black Friday offer just because everyone else does. [21:53] If it doesn’t work for your business…don’t do it! [22:20] Actions you take in life and business and how they are impacted by time pressure. [22:51] The worst case and best case scenario become the new normal and that impacts your decision. [23:12] When you have lots of time to get something done, you have a status quo of all the important things to look at and do. You make a list and work through it and have risk accounted for. [23:24] When there is time pressure, your brain looks at the biggest extremes – the worst thing that could happen if you don’t act and the best thing that could happen if you do. [24:03] Time pressure may get you to finally act and get things done…but are they of high quality and what you would have actually wanted done? [24:23] Studies have found that time pressure causes people to be less creative, less accurate, and for some people can cause them to freeze and revert to making no decision at all. [26:23] Do you have any big things that are constantly moving to tomorrow or next week on the to do list? Constantly putting the important things off is a mindset block we work through in the Brainy Mindset Course.  [26:47] You don’t need to be under constant pressure to get things done. If you know what your brain is doing, why it is putting those blocks out for you and why they are actually holding you back, you can find time to alleviate that pressure. [27:55] Start by narrowing down your goals. Put in time budgets and deadlines based on what is truly in your day. [29:56] Planning and breaking it down into micro-tasks or mini goals can help you to accomplish the big stuff because it gets you out of time pressure. [30:09] Sometimes, time pressure and deadlines can be helpful, but it is best when you are setting those time limits yourself. [30:26] Thoughtful time blocking and time pressure can help you move forward and make progress. [30:59] Set rules for yourself and remember to say that you DON’T do the thing instead of CAN’T do the thing. Studies have found that the way you frame your self talk is really important. [31:28] Take a step back and take time to evaluate what's really going on. Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.  Links and Resources: Judgment and Decision Making Under Time Pressure Decision Making Under Time Pressure: A Model for Information Systems Research This Is Your Brain 'On Sale' Decisions under Time Pressure: How Time Constraint Affects Risky Decision Making Searching for a Better Deal: on the Influence of Group Decision Making, Time Pressure and Gender in a Search Experiment The Effects of Time Pressure and Completeness of Information on Decision Making Episode 32. The Overwhelmed Brain and Its Impact on Decision Making Episode 9. Behavioral Economics Foundations: Loss Aversion Episode 16. Behavioral Economics Foundations: Framing Episode 63. How To Set Up Your Own Experiments Holidays Can Be the Worst Time to Send Client Gifts, According to Research. Here's What to Do Instead Episode 70. How to Set, Achieve & Exceed Brainy Goals Master Your Mindset Free Brainy Course Episode 35. Behavioral Economics Foundations: Nudges and Choice Architecture Episode 45. Overview of Personal Biases Episode 14. Behavioral Economics Foundations: Scarcity Episode 8. What is Value? Episode 19. Behavioral Economics Foundations: Herding