In his biography of Charlemagne, Notker the Stammerer relates a story of two “Scotchmen [who] were unrivalled for their skill in sacred and secular learning.” These men would go into the market and call out, “Ho, everyone that desires wisdom, let him draw near and take it at our hands; for it is wisdom that we have for sale.” This claim drew in the crowds and, ultimately, the attention of the emperor.
The twist in the story, however, is that the Scotsmen really had no interest in marketing their learning to make a profit. They had simply come to realize that if they offered to teach for free, nobody would be interested. Because the price tag is the first signal that the market sees, things that are being given away for free or sold cheaply are assumed to have little worth. Likewise, some people put extremely high prices on their products (even if they intend ultimately to sell for a much lower price) in the hopes that the product will appear more desirable.
I was a tangential party to a real life example of how asking price affects perception. One of my side jobs in college was dealing cards for a promotional company that ran poker tournaments as fund-raisers. The tournaments were well organized and quite successful. However, the owner of the business quickly discovered that some prospective clients saw his very reasonable prices and decided that they wanted to go with a more up-scale competitor. His solution was to raise the prices without changing anything about the product. And it worked. New prospective clients assumed that the high price was a good indicator of the product’s high quality. Business actually increased after the price went up, precisely because the price went up. Like Notker’s Scotsmen, the owner of the promotional company learned that sometimes you have to ask for more than you need, just to get people’s attention.
Beer of the week: Modelo Especial – The head on this beer faded so quickly that I couldn’t get a good photo of it before it was gone. Modelo Especial is a clear, gold brew. It has little aroma or flavor to speak of, really. It’d be easy enough to drink a bunch of this stuff at a party Cinco de Mayo fiesta, but otherwise, why bother? And don’t get me started on the price!
Reading of the week: The Life of Charlemagne by Notker the Stammerer, Book I, 1-4 – Charlemagne filled his court with educated men, such as the aforementioned Scotsmen, and had them educate the children of his kingdom. He found that the highborn children did not take to their lessons as well as the commoners. The lesson, again, seems to be that certain assumptions about value need to be carefully scrutinized.
Question of the week: How much does the asking price affect your perception of a product’s value?
It may be surprising to people with an American education to learn that at the very same time that the United States of America was at war with the Confederate States of America, a French army was pushing its way across Mexico. The Monroe Doctrine had been in place for nearly 40 years, so the thought of a full-on European invasion of Mexico seems rather shocking.
Shortly before the American Civil War, Mexico had its own, known as the Reform War. The immediate result was a fractured and bankrupt Mexican government. In 1861, the president of Mexico declared a moratorium on paying its debts, and the French were none too happy about that. Emperor Napoleon III, who had been elected as President Bonaparte but refused to leave when his term ended, decided that a Mexican regime change was in order. He sent a small army to “negotiate”. On the 5th of May, 1862, an outnumbered rag-tag Mexican army crushed the better trained and better equipped French invaders. Cinco de Mayo has been celebrated ever since.
It is always interesting to put historical events into context. While the Americans were being divided over the question of self-determination (and slavery), Mexicans were fighting for their own right to govern themselves. Their success at the Battle of Puebla was short lived, though. Just three years later, Maximilian I, born in Vienna into the powerful Hapsburg Dynasty, sat on his throne in Mexico City as Emperor.
As it turned out, Maximilian’s empire did not last long either. A successful republican revolt culminated in Maximilian’s execution by firing squad, just two years after the murder of Abraham Lincoln. Sic semper indeed.
Beer of the week: Tecate – Cerveza Tecate is a standard Mexican adjunct lager. It is pale gold in color and quite fizzy. As far as aroma and flavor, there is not much to write. Cheap grain supplies the bulk of both. I could surely down more than a few of these on a hot day, but generally I would pick something more flavorful. Even the addition of lime and salt doesn’t do much for it.
Reading for the week: Memorabilia by Xenophon, Book I, Chapter 2, Sections 39-50 – Whether government is monarchical or democratic in form, it’s nature is always coercive. This reading by Xenophon includes a brief dialogue between Alcibiades and Pericles. In it, Alcibiades gets Pericles to define government coercion as “not law, but force.” The logical conclusion is that all conventional “laws”, from tyrants’ dictates to democratic legislation, are not law at all, but mere force.
Question for the week: When have you been surprised to learn that two historic events were much closer in time than your had realized?