Does your customer decide by thought?

Let’s find out together, step by step.

Let’s say you have a cow. You sell its milk and earn money. After some time, milk prices drop so much that you start to lose with the current feed prices, and it also seems that prices will not increase in the coming period. Would you slaughter the animal and sell it as meat?

Before making the decision, you immediately calculate with your mind: “I get X liters of milk from the animal per day. Multiply by 30 to see it per month. Multiply by 365 per year. Great! Milk price times annual milk production is also my annual endorsement. What are my expenses? How much feed does the animal eat per day? Multiply it with 365.” Facility costs, human costs, milking machines, sustainability costs… With the rough calculation here, a profit or a loss emerges. If there is a loss, you either sell the milk for higher prices or reduce the costs. The price is determined as a competitive one in the market.

Costs can also be reduced to a certain extent, but just like we said, only “to a certain extent.” Is there an alternative solution? Is it possible to sell the animal as meat while bearing the exact costs while growing the animal? What is the price per kilo of beef? How much does your animal weigh? Is it possible to generate more revenue than the cost? In addition to these, some unknown barriers come to your mind; for example, what will the future price of milk be? The health of the animal, as well as its possible death. Changes in legal regulations or working conditions are also possible. Despite these unknowns, we try to make the right decision with reasoning. The results may not be what we exactly want.

We may make the wrong decision, but there is a calculation and reasoning in this approach even though it’s a wrong decision.

Either we look at this rough calculation and continue to milk, or we slaughter the animal and sell its meat.

When we act rationally, measuredly, and calculated in decision-making processes, like in this article, we call it rational thinking. With this method, our chance of making the right decision increases, or predicting the consequences even if we make a wrong decision gets more accessible. Rational thinking is an action that takes time and effort. Our biology, on the other hand, works by savings. If a truck is coming on your way, your brain has evolved to escape without thinking, not to calculate the estimated speed of the car and pick the best case scenario to save your life.

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