I had never heard of “sunk cost” in my life until Kyeli posted about it at Cloud Nine. Do people really do this??
What I understand from various references is that “sunk cost” describes the amount of time and effort you have invested in a particular course of action. Therefore, a business person who is playing on your sunk cost may draw out the length of your meeting, give you plenty of paperwork to fill out, spend a lot of time getting to know you, etc. Someone who does this with sunk cost specifically in mind may be hoping that once you’ve invested that energy, you will continue to work with them, continue at this course of action, despite any conflicting details that become apparent.
The “sunk cost fallacy” explains that it makes no sense to do this. And that’s what I would think, too! Just because you’re sinking a lot of time into a solution doesn’t mean it’s the right thing to do, especially if you find out along the way that it’s definitely not the best solution. There are really people who use this on purpose? For real?
Ironically, doesn’t this tactic create a sunk cost situation for the business person, as well as the client?
Ha!
