Monday, August 29, 2011
Why We Make Mistakes: Post #7--It's the Frame that Matters
We’re in the Wrong Frame of Mind: How we frame or look at things dictates how we respond to them. Much of the time we’re operating off of our emotions, even when they don’t always serve us well. Framing is all around us. We buy more food when we’re hungry, buy more French wine when French music is playing in stores, buy snow shovels when the weather gets cold, eat more ice cream when the weather is hot. When it comes to pricing homes, the listing price acts as an anchor—or frame—for negotiations. When it comes to selling homes, the higher the listing price, the higher the final negotiated price. Another note: Being listed first on a ballot, gives you a 3 percent bump in elections. Frame it first and find yourself at an advantage.