Actually, just a small part of my summer vacation.  And to be even more specific – how I spent last weekend.

First, a little background.

Many years ago, I developed an addiction to playing mahjong on my office computer. Since it was impeding my ability to get my work done, I deleted the game from my computer.  Problem solved. Or so I thought.

The following Saturday I arrived at the office knowing I needed to work.  Unfortunately, I also knew that the mahjong game was still on Cathy’s computer, to which I had the password.

I thought that a few minutes of mahjong would be fine. So at 9:00 am I sat down for two games – ten minutes, maximum.  Then work.

As you might have predicted, I was still sitting in exactly the same position at Cathy’s computer at 4:00 pm.  No work.  No lunch.  Just mahjong for the entire day.  It was, I must admit, glorious.

Fortunately, or unfortunately, last week I came across a free mahjong game on my iPhone.  There went Saturday.  But I promised myself on a stack of hundred-dollar bills (see the photo with last week’s blog) that on Sunday I would not play mahjong.  Not even once.

You’re probably ahead of me.  Yes, I also spent last Sunday playing mahjong.  I skipped breakfast, though I did stop for lunch and dinner.  Perhaps I’m getting my addiction under control?

Now for the rationalizations:

1. It doesn’t really matter in the great scheme of things whether I play a computer game for a day (or two) instead of reading a book.
2. I didn’t really have to work on weekends anymore.
3. I can’t think of any activity that provides me more reliable fun for an extended period.  (I once played mahjong on what seemed like a 20-minute flight from Maui back to Los Angeles.)

Okay.  Enough blog writing.

My iPhone is calling to me.

Alan

As many of you know, a few years ago I wrote People Tools, a guide for enjoying a happier and more productive life.  That book became a best seller and was followed by two sequels – People Tools for Business and People Tools for Love and Relationships.  One of my all-time favorites is the People Tool of “Sunk Cost,” which is both obvious and counter intuitive.  It is a strategy I have written about before, but it bears repeating because it can significantly improve the quality of your life.

Let me elaborate.

When I was studying accounting in college, the following question was posed.  Suppose a manufacturing company has just installed a new machine at a cost of $2,000,000.  A salesman calls, trying to sell the company a much faster, more efficient machine priced at $3,000,000. Should they consider a replacement?

The easy response is, “No, they just bought a machine that is brand new, and it is working fine.”  But that is not necessarily the more profitable solution.  In business, as well as in our personal lives, we need to focus on the future because we cannot change the past.

So we have to completely ignore the “Sunk Cost” of the old machine and compare the future cost savings and potential profit from each machine.

For example, if the new investment of $3,000,000 will earn back its entire cost in six months and make a significantly greater profit after that, then it is certainly an investment we should consider.  The previous “Sunk Cost” is irrelevant.  Whether the existing machine was purchased twenty years ago, twenty days ago, or twenty minutes ago makes no difference.  It is a part of the past that we cannot change, and this is why a “Sunk Cost” shouldn’t influence our decision.

Another example comes to mind.  Suppose you have just moved to New York to take a new job, and two weeks later your ideal position becomes available – in San Diego.  Would you turn it down because you have just paid to move your belongings across the country?  ”Sunk Cost” says that your past move is makes no difference.  If you think you will be better off, you should accept the San Diego job. Why thwart future opportunity and potential upside because of an expense incurred yesterday?

I also apply “Sunk Cost” to the use of my time.  Just because I bought a ticket does not mean that I have to sit all the way through a boring two-hour movie.

You have now invested three or four minutes in reading this blog, so I hope “Sunk Cost” will be worth your time.

Thanks.

Alan

During the past four years, Daveen and I have seen just one movie in a theater — Westside Story, a remake of one of our favorites.  So on Saturday afternoon we thought it was time to see one of the two blockbuster films that opened last week.

We drove to Universal City, parked (at a fee of $75.00 for three hours — I recommend against valet parking), and found our way to the multiplex theater.  At the box office I requested two tickets to the Imax screen for Oppenheimer.  We could leave the Barbie film for another time.

The young lady behind the glass window could have been Barbie’s twin sister.  But alas, with a smile, she told us that the Imax showing was sold out – every seat for the next several weeks.  I was shocked.  I’d never heard of a new movie being sold out for that long, even on an Imax screen.  To assuage our disappointment, we stayed to enjoy lunch at the food court, but left in less than an hour, saving $50.00 on the parking lot fee.

I must admit that in a few ways I’m starting to feel my age.  For one thing, even though I own a property management company that exclusively oversees shopping centers, there were several retail stores at Universal City with names I didn’t recognize.  For another…well, I’ll just say that paying more than $10.00 for a hot dog – all right, a chili dog — seems a bit much.  Who do they think they are – Dodger Stadium?

On Sunday afternoon we enjoyed an early dinner with friends at a local Italian restaurant.  The total price of dinner for four was less than three hours of valet parking at Universal City.

And what will we do this evening?

Maybe I’ll have a 75-cent hot dog at home and watch a movie on Netflix.  The parking fee will be zero, the cost of the movie is included in our monthly subscription fee, and when it’s over we won’t have to remember where we parked the car and wonder how long it will take to drive home.

No, when the credits roll on a Netflix movie, I’ll be right in bed where I belong.  (The name of this People Tool is “Sweet Grapes”.)

Alan