Boycotts

Captain Charles Boycott was the focus of a social shunning organized by the Irish National Land League. He acted as the land agent for Lord Erne in County Mayo, Ireland. In 1880, there was a bad harvest and Lord Erne started evicting tenants from the land for not paying their rent. The social shunning was so effective that Mr. Boycott could not get workers for his fields and the post refused to deliver mail. The news about this action spread quickly and soon, we had the word "boycott" in our language.

Tesla sales have dropped dramatically. Other companies have experienced either threats of consumer boycotts or actual dropping sales. What would happen if your customers suddenly went "on strike" against your company? The best defense is prevention by being close to your customers and their values.

Consumers have a moral right to choose from whom they will buy. They may choose based on price, perception of the company's political support, or ideas about how the company operates.

There have been some high profile attempts to organize boycotts against companies in the past. Some of those companies quickly folded only to find themselves being hit from the other side. Target has seen some significant store sales drop due to people protesting their dropping DEI. On the other hand, Tractor Supply saw less than a 1% drop in same store sales this last year after publicly disavowing certain initiatives.

There are several reasons for a boycott to be effective. First is whether or not there are easy replacements for what the company sells. Bud Light could easily be replaced by another "lite" beer and thus, their sales dropped quickly. The second is whether or not the company stance fits with the customer base. Telsa sold many cars in Europe and now many would be consumers are turning away for national and political reasons. (VW sales of electric cars is up.) And media coverage is vital for boycotts. The original shunning of Captain Boycott would not have had much effect without all the media coverage it received. Today, social media is key to organizing a boycott

Most consumer boycotts fade away after a while. 90 days is mentioned in the literature. Social media campaigns can fade even quicker. Yet, the long-term effect can be significant. Most companies fold not because of the sales drop, but because of the publicity and wanting to avoid bad publicity. When people can easily shift to another company to buy essentially the same goods or service, that shift can be a long-term effect.

The best action is prevention. Companies prevent activist action by connecting with their customers and their concerns. The top reasons for consumer boycotts are putting people's health at risk or engaging in unethical behavior. Avoiding both of those is a good idea. Quite a number of companies have resisted the calls to stop DEI because their customers value it.

Follow your customer's values in the social sphere.

Flooded by Risk

The recent floods in Texas and elsewhere and the recent meme about the concert couple remind us that risks eventually do happen. Eventually what we risk will happen. Being caught on the Jumbotron might be the smallest of consequences. There are two types of people who take on lots of risks, those who simply ignore or are ignorant of them, and those who constantly take on risks. A proper evaluation of risks helps survival.

Most humans are good at assessing short term risks. We can look at the oncoming traffic and wait to turn till the road is clear. However, as a group, humans are terrible at long term risks. We build towns and other infrastructure in places that the tidal wave destroyed hundreds of years ago only to see another tidal wave destroy these. We build camps beside rivers that had flash floods decades ago only to have another flash flood wipe out the camp. Even insurance companies are having trouble properly pricing insurance that properly takes in both short term and long term risks.

There are people who are addicted to taking risks. They seek out the latest and most extreme roller coaster rides. They gamble heavily and engage in other high-risk behavior. Often, these enjoy the first time they take that risk but the effect wears off. They become used to that level of risk and seek even more risk. While many of them are successful business people, their risks eventually catch up with them and they get caught on the Jumbotron or worse. The people who constantly need more risk drive new businesses and stock market bubbles. Risk takers fill their lives with drama, excitement, and failures.

Do we want to associate with high-risk takers or do we want a more stable life? Choose what fits your life goals.

Risky World

There are many people with the same name (and companies with similar names). AI is confusing them adding to what is now called "AI slop." Dave Barry (the writer) has been called dead when it is Dave Barry (the activist) who is dead. Hopeful sales people are sending out marketing emails mixing up accomplishments from another company.