BC BUSINESS MENTAL MODELS
Saved by @DattaTanishq

“I spend too much at Starbucks” is a legendary meme.

It's also not an accident: the coffee retailer -- worth $120B -- uses many psychological hacks in its store and menu designs to get you to drop more cash.

Here are 11 of them 🧵

 1/ Starbucks is all about positioning

The chain has higher prices vs competitors. But that's the point.

People typically assign higher value/quality to higher prices. Known as "irrational value assessment", this makes Starbucks an everyday luxury that people will pay for.
2/ Premium brand = premium customer base

By setting its prices higher, Starbucks attracts clientele that are relatively price insensitive.

Starbucks frequently raises its prices with little negative effect to its bottom line.
3/ "More than coffee"

Former Starbucks CEO Howard Schultz created the premium feel by emphasizing experience:

◻️Positioned SBUX as a "third place" (b/t home, work)
◻️Brought bean grinding in-store (for aroma)
◻️Banned auto espresso machines (it took away from the barista craft)
4/ Lighting and visual cues

The Starbucks operations is about "flow", efficiently moving people around the store+ getting them to spend.

To form lines, it directs people to well-lit areas (usually the merchandise, which provides the added benefit of nudging products for sale).
5/ Shop layout

Across its 32k+ locations, Starbucks places its cashiers in the middle or back of the cafes. As customers work through the line, they're watching other patrons enjoy their beverages and bites.

This is all priming them for their eventual orders.
6/ Mobile app

There's a psychological effect known as "peak-end rule": people remember experiences by the most intense part and the end.

The pre-order app takes away 2 of the most unpleasant parts (paying + waiting), improving the *whole* experience.
7/ Starbucks card

Customers have $1.6B+ on Starbuck's apps/cards (hence the joke "SBUX is a bank").

In a concept called "mental accounting", people irrationally classify money in different buckets and treat them differently. That SBUX money is way more *spendable* than cash.
8/ Loyalty program

Starbuck's Loyalty Program has 20m members and they contribute ~50% of the company's revenue.

The retailer takes all customer data and is able to provide individualized offers at scale. The freebies are habit forming and keep people coming back.
9/ Personalized orders

We all know the joke: "Starbucks mispelt my name". However, the very fact that the baristas write it down increases your affinity for the brand.

This is known as the "cocktail party effect": people focus (and assign more value) to info about themselves.
10/ Menu structure

Through the 90s, the 3 sizes that Starbucks listed were Short, Tall and Grande. It has since bumped Short (you can still order it but its not on menu) and added Venti.

Now, the most popular size is the Grande (the new middle option and larger than SHORT).
10/ Pricing

In addition to upping default sizes, Starbucks also uses pricing to steer you.

In what is known as the "attraction effect", your choice-set gravitates to the items that are "closer together". Here, the price b/t Grande and Venti is *closer* than Tall and Grande.
11/ No dollar signs on menu

Why? psychologically, a dollar sign triggers the idea of "price" and "spending...instead of "experience" and "what you're receiving".

Here IS a dollar sign: ~$29B, which is Starbucks projected sales this year.
12/ If you enjoyed that, I write threads breaking down tech and business 1-2x a week.

Def follow @TrungTPhan to catch them in your feed.

Here's one you may enjoy: https://t.co/GsnF25dBwj
13/ I discuss interesting topics like this once a week (with a healthy dose of dumb jokes) on the Not Investment Advice (NIA) podcast.

🔗https://t.co/WY6Xehj30C
14/ Sources

Formation: https://t.co/aqCrODYrof

Bloomberg: https://t.co/2EStUU7BLW

CNBC: https://t.co/99JjI8OlbH

Medium: https://t.co/A4APLJQiBO

Brightside: https://t.co/wc1DAS8qAD

Price Intelligently: https://t.co/hz8FGpeqQv

Kent Hendricks: https://t.co/FtePg3mwJ2
15/ Here's an interesting WSJ price breakdown of a Starbucks drink:
16/ Oh, also, a Starbucks barista one gave a famous answer on Quora explaining "what your drink said about you":
17/ One more of the Starbucks barista's insights

🔗https://t.co/rMfxx0pwVx
18/ Some Reddit comments from former Starbucks baristas...which are big if true https://t.co/mqcj0qUhmD
19/ Last thing.

If you enjoyed this thread, you'll DEF like this one: https://t.co/WZZYWQhlzD

More from Trung Phan 🇨🇦

Trung Phan
Trung Phan
@TrungTPhan
Steve Jobs famously said innovation is "saying no to 1000 things" before you say yes.

For more than a decade, Apple has used Pablo Picasso's Bull to drive home the lesson.

Here's a breakdown 🧵


In Dec. 1945, Picasso created "The Bull", a series of 11 lithographs (stone prints).

With each successive print, a bull is simplified and abstracted. Picasso's goal was to find "spirit of the beast".

At Apple, employees are taught this philosophy.


Below are the 1st, 4th and last stone print.

The bull progresses from:
◻️a realistic drawing
◻️to a deconstructed image w/ the famous "abstract" style
◻️to lines outlining a shape

Through 11 iterations, Picasso simplified the image until it captured the "essence" of the bull.


Picasso said of the abstraction process:

"Two holes. That’s the symbol for the face, enough to evoke it without representing it. But isn’t it strange that it can be done through such simple means? Whatever is most abstract may perhaps be the summit of reality.”


Enter Apple University.

In 2008, Steve Jobs tapped the dean of Yale School of Management to create an internal training curriculum for Apple.

The program was meant to teach new employees Apple's culture and design philosophy (the teachings are rarely shared with the public).
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Trung Phan 🇨🇦...
@TrungTPhan
At 40, Jim Simons left a famed math career to launch the most successful hedge fund ever: Renaissance Tech.

Even though it only won 51% of trades, the fund made 66%/yr for 30yrs (Simons worth = $25B). It's a story of genius, but also of how hard it is to beat markets.

THREAD🧵


1/ The crown jewel of RenTech is The Medallion Fund (launched in 1988).

◻️ From 1988-2018, it posted a return of 66%/yr (39% after fees)
◻️$1 invested in 1988 is now worth $14m+
◻️ Cumulative profit = $100B+ even with an avg. fund size of only $4.5B


2/ Before creating what Bloomberg calls the “greatest money-making machine ever”, Simons was a legendary mathematician.


3/ While at Stony Brook, Simons started trading commodities (with money staked by former MIT classmates).

The side investing was good enough that Simons -- also going through a divorce -- decided to leave academia and launch his own money management firm in 1978: Monemetrics.

4/ At the time, there were 2 main investment approaches:

◻️ Fundamental (understanding and forecasting an asset based on key drivers)
◻️ Technical analysis (studying price charts)

Simons’ strategy was to place a “fundamental lens” on currencies (eg. supply and demand).
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𝚃𝚛𝚞𝚗𝚐 𝙿𝚑𝚊𝚗 🇨🇦...
@TrungTPhan
1/ Amazon is famous for its writing culture:

• "Mock press releases / FAQs" for new product pitches
• "6-page memos" instead of Powerpoint

Two former Amazon execs wrote a book called "Working Backwards" detailing the philosophy.

Here are some insights 🧵


2/ The "Working Backwards" playbook

Instead of creating a product then finding customers, Amazon asks "What does the customer need?" and works toward the product.

✅Customer need --> Create product
❌Create product --> Find customer

3/ Write a mock press release

To determine if the customer need makes biz sense, employees write a press release:

• What problem is the new product solving
• Why it's better than existing options

To persuade a customer, the document has to be jargon-free and tell a story.


4/ Press release forces big thinking

You don't write a press release for an incremental improvements.

Creating a product worthy of a press release means really solving a customer problem and going after markets with large TAMs.

5/ Include an FAQ in press release

Addressing every potential customer question can help identify hurdles to getting something to market...and also uncover opportunities.
CULTURE
Trung Phan \U0001f1e8\U0001f1e6
Trung Phan 🇨🇦...
@TrungTPhan
The most memorable interview I did this year was w/ Stanley Druckenmiller, who famously made $1B shorting the British Pound.

The trading legend's track record includes a 30-year stretch returning 30%+ a year (without a single down year).

Here are 8 investing lessons🧵

1/ Make concentrated bets in high conviction plays


2/ Concentrated bets can sometimes *reduce* risk


3/ Use a multi-disciplinary approach to investing


4/ Know when to sell (he never uses a stop loss)
FINANCE
Trung Phan \U0001f1e8\U0001f1e6
Trung Phan 🇨🇦...
@TrungTPhan
A Netflix user will browse the app for 90 seconds and leave if they find nothing.

Thumbnail artwork is actually NFLX's most effective lever to influence a viewer's choice. A user will look at one for only 1.8 seconds, so NFLX spends huge to optimize them.

Here's a breakdown🧵


1/ Spoiler alert: humans are visual animals.

Our eyes move 3-4x per second to process information and we can analyze an image in as little as 13 milliseconds.


2/ In 2014, Netflix consumer research showed that thumbnail artwork:

◻️ is "the biggest influencer...to watch content"
◻️ is the focus of 82% of browsing time

A user looks at one for only 1.8 seconds. If they can't find Netflix content in 90 seconds, they'll leave the app.


3/ Consequently, Netflix uses an elaborate thumbnail selection process for each of its 200m+ users.

The process is called aestethic visual analysis (AVA), which starts by pulling all the frames from a video.

For reference: a 1hr episode of "Stranger Things" has 86k frames.


4/ In a process known as "Frame Annotation", each frame is tagged with metadata identifying key variables:

◻️ Saliency
◻️ Frame #
◻️ Brightness / Contrast
◻️ Nudity probability
◻️ Face / skin tone
ALL , MARKETING INSIGHTS

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\u2728Anshika Sharma
✨Anshika Sharma
@Anshi_________
Low-risk, High-return stocks are what we look for relentlessly

But many of them we know but ignore
some of them don't grab financial headlines

Here are 10 low-risk, high return stocks (that we ignore):

What I mean by “high-return”?

These stocks have OUTPERFORMED the market:

💹Chart with upwards trend Since IPO
💹Chart with upwards trend Over the last 5 Years or since IPO

These are all long-term winners that will keep on winning

What do We Mean by “low-risk”?

A combination of:

❣️Great management
❣️Broad moat
❣️Financially strong
❣️High ROCE
❣️Low Disruption/Dilution/Volatility
❣️Consistent Organic Growth
❣️Assorted Customers/Suppliers
❣️Low debt

1-#CDSL

A depository is a big business and will grow continuously, Its a sustainable business
cause "Market hai toh CDSL bhi hai or rahega"


2- #Dixon

High Management Efficiency with a high ROE of 19.30%
Healthy long-term growth as Net Sales has grown by an annual rate of more than 30%
High Institutional Holdings
LOW RISK HIGH RETURN STOCKS , LOW RISK HIGH RETURN STOCKS FOR LONG TERM , LOW RISK STOCK IDEAS
Jaya_Upadhyaya
Jaya_Upadhyaya
@Jayalko1
SRI KALAHASTI KSHETRAM, CHITTOOR (AP)
#bharatmandir

Panchbhootasthalam representing vayu element, also called Dakshin Kailasha.
As per Shiva’s boon, Vayu is incarnated here as Shiva and worshipped as Kalahasteeswara.
The kshetram is also associated with Rahu and Ketu.


The Kshetram is named after 3 devotees of Shiva- a snake, spider and elephant who worshipped a lingam in the forest. Elephant did jal abhishek with water from its trunk, spider protected it from dust by weaving a web on it and snake adorned it with his jewel.
@GunduHuDuGa


Once, the web and jewel got washed away when elephant sprayed water on the lingam. Angered snake entered elephant’s trunk and bit him but died in the process. The agitated elephant trampled the spider accidentally. Shiva gave moksha to all three.


Hence the name-Sri for Spider, kaal for snake n hasti for elephant.

Shiv bhakt Kanappa is said to have plucked his own eye to put it on the lingam here when he saw blood oozing from the eye on the lingam
This place is the ultimate location for Rahu Kethu Sarpa Dosha Nivarana.
ALL
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Vशुद्धि...
@V_Shuddhi
The first ever world map was sketched thousands of years ago by Indian saint
“Ramanujacharya” who simply translated the following verse from Mahabharat and gave the world its real face

In Mahabharat,it is described how 'Maharishi Ved Vyasa' gave away his divine vision to Sanjay


Dhritarashtra's charioteer so that he could describe him the events of the upcoming war.

But, even before questions of war could begin, Dhritarashtra asked him to describe how the world looks like from space.

This is how he described the face of the world:

सुदर्शनं प्रवक्ष्यामि द्वीपं तु कुरुनन्दन। परिमण्डलो महाराज द्वीपोऽसौ चक्रसंस्थितः॥
यथा हि पुरुषः पश्येदादर्शे मुखमात्मनः। एवं सुदर्शनद्वीपो दृश्यते चन्द्रमण्डले॥ द्विरंशे पिप्पलस्तत्र द्विरंशे च शशो महान्।

—वेद व्यास, भीष्म पर्व, महाभारत


Meaning:-

हे कुरुनन्दन ! सुदर्शन नामक यह द्वीप चक्र की भाँति गोलाकार स्थित है, जैसे पुरुष दर्पण में अपना मुख देखता है, उसी प्रकार यह द्वीप चन्द्रमण्डल में दिखायी देता है। इसके दो अंशो मे पीपल और दो अंशो मे विशाल शश (खरगोश) दिखायी देता है।


Meaning: "Just like a man sees his face in the mirror, so does the Earth appears in the Universe. In the first part you see leaves of the Peepal Tree, and in the next part you see a Rabbit."

Based on this shloka, Saint Ramanujacharya sketched out the map, but the world laughed
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Ｌａｄｙ Ｂｌａｚｅｓ...
@Lady_Blazes
Oh my Goodness!!!

I might have a panic attack due to excitement!!

Read this thread to the end...I just had an epiphany and my mind is blown. Actually, more than blown. More like OBLITERATED! This is the thing! This is the thing that will blow the entire thing out of the water!


Has this man been concealing his true identity?

Is this man a supposed 'dead' Seal Team Six soldier?

Witness protection to be kept safe until the right moment when all will be revealed?!

Who ELSE is alive that may have faked their death/gone into witness protection?


Were "golden tickets" inside the envelopes??


Are these "golden tickets" going to lead to their ultimate undoing?

Review crumbs on the board re: 'gold'.


#SEALTeam6 Trump re-tweeted this.
GOVERNMENT
Anu Satheesh \U0001f1ee\U0001f1f3
Anu Satheesh 🇮🇳...
@AnuSatheesh5
Nanganallur Anjaneya Temple
#Chennai
#Tamilnadutemples 🚩

Bhaktha Anjaneya temple at Nanganallur in Chennai is one among tallest Anjaneyar Vigraham. Here Anjaneyar blesses with relief to all illness. Vigraham is about 32 feet height made of single  stone.
Anjaneyar here is 👇


Sri Vishwaroopa Aadhivyathihara Baktha Anjaneya Swamy.

Sthala Puranam says that, this is the place where Indra Deva hit Hanuman on the cheek by his Vajrastram. Sri Raghavendra Swami and Sri Kanchi Paramacharyar were behind in building this temple. Temple is constructed to


Realize power of Anjaneyar who is seen both in Ramayana and Mahabharatha.
Vadamalai is important offering to Anjaneyar here. It is believed that vigraham contain powers to heal any disease. Shri Ramanavami is celebrated here.

Jai Sri Ram
Jai Hanuman
🙏🕉🙏
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