What I Learned Buying a Rug in Turkey

In some countries, it is not unusual for male friends (heterosexual friends) to sometimes hold hands when they walk

I think application of this into a startup is all about interaction. How can a company passionately (read: more then just newsletter drips) interact with their users after they have signed up for the freeby but maybe aren't quite ready to pay? Even with the "free plan with hopes of people upgrading to pay" model so popular these days, conversion rates still seem too low to me. Users sign up for the freeby but then instead of diving into an engaged relationship with the company, too often those users are "off the hook" from courting... they have already shown interest, now wow them into converting.

Reciprocation is covered with the company providing the free trial or the free shipping. In startups, "Social proof", "Liking", "Authority", and "Scarcity" are all more-or-less defined by the userbase and market the company is in. That leaves us with "Commitment and consistency" as the magical 'weapon of influence'. So what is that exactly? I think it comes back to providing your users with an excellent product, excellent service, and make them feel like they are part of the family. From a different model, I think Zappos does an excellent job of this. To loyal Zappos customers, using the service is a no-brainer - at every turn the company makes users feel catered to, and in turn the users will continue to shop and feel confident that the relationship will work like it always has in the past.

I see this more of a lesson in persistence paying off, and understanding your client, their needs, how to predict and answer their questions, and behave to sell effectively (in this case usage of the environment) - things any entrepreneur in any business needs to know.

Yes, it is a social hack and manipulation to an extent (I don’t agree with bringing the kids in etc., that is low), but these are the same lessons and issues found in most business (merchant wants as much as he can get, client is often reluctant to buy until they see the benefits to them, and in order to reach a deal there is often much bartering and negotiations to be had).

Are some of the people we meet and network with, especially in business conferences and trade-shows, any different? Are price negotiations between the companies we interact with any different?

Simply put, the rug sellers understand what they are selling, what people are willing to pay, and how to sell it to them, and these are things all people in business should know. If win-win can be achieved (client thinks they are getting a bargain and seller is happy with sale price) then all the better. If you buy a rug, are happy with the rug, are happy with the price, what is the problem?

It is really market competition, and in many cases desperation, that is the root of the unethical behaviour. I do not agree with using pressure tactics, misleading "consultative" selling (was what he was teaching them about rugs true or was it tailored to his needs?), inferior goods supplied ("bait-and-switch"), or the multitude of other things that occur. But I see similar behaviour occurring in many high pressure environments, especially in the financial services sector (some stock brokers come to mind).

There were street vendors/con artists like that running around in Fiji when I visited--asking your name, carving it onto a painted, balsa-wood knife-thingie, going on at length about how their kids were going to starve if you didn't fork over at least $20. Luckily, my co-workers ran into 'em first, so I was forewarned and forearmed. I pulled all but $3 from my wallet and folded it up in another pocket before hitting the street, and when the inevitable vendor approached me, I got the Fiji keepsake for about what it was worth to me, no social pressure involved (and he wasn't shy about looking into my wallet when I claimed I only had $3 on me).