In the spirit of one of the most commercially incentivized holidays of the year, let’s talk about the foundation of business — Supply and Demand.

i.e. the exchange of value.

Person A wants something.

Person B has the thing Person A wants.

Person A: “How much is this worth?”

Person B: “How much are you willing to pay for it?”

Negotiation. Also known as the game of Will.

Eventually, one side concedes.

Let’s say Person B is good at business.

Person B has wide array of psychological tools to speak to Person A’s desire. They know how to manipulate the market to simulate scarcity. They know how to present what Person A wants in an enchanting, tantalizing way.

Person A’s mind is filled with all sorts of thoughts:

“Look how much better Person C is doing with this thing I want.”

“My life would lose its meaning without this thing I want.”

“Every person in the social circle I want to be in has this thing I want. I won’t be accepted without this thing.”

If Person A is not feeling very good about themselves, if they are a little depressed, their self-image has taken a hit… if they’ve fallen into a loop of outsourcing their personal power to collecting material possessions and experiences, they are vulnerable to Person B’s tactics.

However, if Person A is aware of their own power… if they know that without their resources, Person B won’t stay in business, the dynamic changes.

Person A has done their research. They know what Person B is selling can be found in many places. Person A, through subtle and not so subtle cues, lets Person B know what they’re selling is commonplace.

Person A pretends not to see the value of the thing they want.

Person A is at peace with living without the thing they want.

If Person B is not very good at business, not connected to their personal power, if they see Person A as an opportunity to climb a social ladder, they will beg (consciously and unconsciously) for Person A’s approval.

Person A flips the table. Person A says what they have access to is of greater value than the thing Person B is selling.

Person A wants to get the thing they want with as little exchange of resources as possible.

They know they are connected to people who may potentially bring Person B opportunities. Person A wants to pay Person B through social capital.

Notice how the dynamic changes when one side has access to what the other doesn't.

As the supplier of goods or services, Person B’s position in the negotiation depends on their ability to demonstrate their value. If they fail, the exchange of resources becomes a race to the bottom. Person A will either move to cheaper options or, in some cases, to a more expensive supplier that knows how to speak Person A’s language.

This is why in order for Person B to find success, they must be deeply immersed in the cultural context Person A exists in.

Trust requires understanding.

In the Worldbuilding for Your Business Workshop I hosted earlier this month, the 57 people who registered were given an opportunity to see their business more objectively, learning where their audience and potential customers hesitate and disconnect from their work.

If you struggle with sales and retention, creating an inviting experience for your prospects and audience is the key you may be missing. The workshop replay and workbook are available for purchase for $27. Buy it here.