“It takes more skill to successfully give something away than to sell it”
Agree?
Think about selling:
Excluding one time profiteering where the buyer is victimized (want to buy the Brooklyn Bridge?), it should be win/win for both the buyer and seller where price becomes the vehicle for determining success.
Now think about giving something away:
The giver gets the pleasure of altruism, helping someone else. The receiver gets the value of the gift, needed help, a boost to make their lives better. But only if successful… looking at four unsuccessful examples:
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- The US government used to dump (give away) excess agricultural commodities (food) to countries in need due to chronically low production (not natural disaster). The end result? Many times this dumping of food further depressed the receiving country’s ability to feed themselves as the free food depressed the price local farmers could receive for their production. Lower prices led to lower production, magnifying the problem. A poster child for “Ugly Americans”.
- When I first came to a new manufacturing facility, I asked to see the budget details for an upcoming Christmas party. A nice event for all employees including dinner and a live band. I was stunned to see that by far, the biggest expense for the party was “door prizes”. These give aways totaled dramatically more than all other expenses combined. When I suggested eliminating or reducing the amount spent on door prizes I was told, “If we don’t keep all the door prizes, nobody will come.” Beyond the obvious morale issue of a team that needed to be bribed to socialize together… was the reality that huge door prizes had become an entitlement.
- I’m sure we have all had a gift exchange where someone had given a gift of far greater value than what you had given. The giver may still be very happy, but you as the receiver… less so.
- Lastly, most of us have probably tried to help someone in need with a significant gift to help them get back on their feet. It feels good to help. But when they tried to reciprocate with some small gesture, did we say, “Oh, no, please don’t bother”? Denying the person the ability to keep their pride, damaging their self-worth.
It’s better to give than receive. Yes. But givers should always be very careful. Governments must anticipate and prepare for unintended negative consequences. Managers should of course reward employees and creatively increase engagement, but think through establishing informal entitlements. And we all can be more tactful with our generosity.
Giving takes skill.