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Christmas is coming, which means we're gonna waste a lot of money on gifts that people don't *really* want that much.
Here's what the research has to say about why, and how you can give better gifts this year.
Here's what the research has to say about why, and how you can give better gifts this year.
In 1993, economist Joel Waldfogel published a study called 'The Deadweight Loss of Christmas'.
He found that we value our gifts anywhere between 10-33% lower than their actual cash value.
The reason? Gift givers and gift receivers think completely differently.
He found that we value our gifts anywhere between 10-33% lower than their actual cash value.
The reason? Gift givers and gift receivers think completely differently.
When we give give gifts, we optimise for:
Surprise
Desirability
Materiality
Virtuosity
When we GET gifts, we look for:
Usefulness
Versatility
Quality
Stuff we asked for
Surprise
Desirability
Materiality
Virtuosity
When we GET gifts, we look for:
Usefulness
Versatility
Quality
Stuff we asked for
When we GIVE gifts we focus too much on the *moment of exchange*. We want to see their faces light up.
When we GET gifts we care more about what we can do with the gift *afterwards* (because we're stuck with it).
When we GET gifts we care more about what we can do with the gift *afterwards* (because we're stuck with it).
Gift givers care about making gifts EXPENSIVE and THOUGHTFUL.
Gift receivers are only bothered about being able to use the damn thing, and whether or not they actually care about it.
Gift receivers are only bothered about being able to use the damn thing, and whether or not they actually care about it.
Example: I know you're passionate about music so I put a lot of thought and money into it and...
Buy you a guitar.
Only problem is, you never had any interest in wanting to play the guitar... so it's a complete waste of a gift. Doesn't matter how expensive or thoughtful it was.
Buy you a guitar.
Only problem is, you never had any interest in wanting to play the guitar... so it's a complete waste of a gift. Doesn't matter how expensive or thoughtful it was.
Altogether, we have a bunch of blindspots when it comes to buying gifts for our nearest and dearest.
Luckily, there are a BUNCH of ways we can improve our chances.
Luckily, there are a BUNCH of ways we can improve our chances.
1. Be realistic about your relationship
If you're an aunt, uncle or grandparent... 9 times out of 10 they're going to value CASH (or a cash equivalent) more than the gift you would have otherwise gotten them.
They can then get something they *actually want*.
If you're an aunt, uncle or grandparent... 9 times out of 10 they're going to value CASH (or a cash equivalent) more than the gift you would have otherwise gotten them.
They can then get something they *actually want*.
2. Make it useful
A voucher for dinner at a fancy place out of town is inconvenient. But a voucher for a cheaper place a short walk away... that's more useful.
Research shows we actually prefer the easier, more usable option to the fancy one that’s hard to reach.
A voucher for dinner at a fancy place out of town is inconvenient. But a voucher for a cheaper place a short walk away... that's more useful.
Research shows we actually prefer the easier, more usable option to the fancy one that’s hard to reach.
3. Ask them what they want
It feels awkward, but it's better than trying to read someone's mind.
You will lose the surprise in the moment of exchange, but that's only something that *you* care about, not them.
It feels awkward, but it's better than trying to read someone's mind.
You will lose the surprise in the moment of exchange, but that's only something that *you* care about, not them.
4. Be selfish
That is, think about what *you* would actually want.
Studies show that if we think too hard about what *they* would want, it's too abstract and we slip up.
(Don't get your wife a bowling ball like Homer Simpson did, though: )
That is, think about what *you* would actually want.
Studies show that if we think too hard about what *they* would want, it's too abstract and we slip up.
(Don't get your wife a bowling ball like Homer Simpson did, though: )
And that's about as many tweets as I shall be tweeting. (It's already too many.)
For more detail, check out my article on the topic below and, if you found it useful, please do me a solid and share this thread! https://www.willpatrick.co.uk/articles/how-to-buy-gifts-that-people-actually-want
For more detail, check out my article on the topic below and, if you found it useful, please do me a solid and share this thread! https://www.willpatrick.co.uk/articles/how-to-buy-gifts-that-people-actually-want
