Dear Daughter (XVII), Microeconomics, AI, and problem-solving

I can't wait to have you home for the weekend - even though it's only been four weeks, it feels like ages! I′m kicking off this letter with a few quick reflections.

You mentioned wanting more meaning in your life and considering teaching English to Ukrainian kids or doing volunteer work in Africa or other places in need. I'll support you no matter what you decide, but here's something to ponder: at this point, your contribution would mainly be your hands and perhaps a tiny slice of your brain (no offense!). As you gain more education and experience, you'll be able to make a greater impact and contribute in even more meaningful ways. My advice? Settle into your studies, make friends, enjoy books for fun, and explore Europe. There will always be problems in the world to solve – have some patience, young adventurer.

It was fun discussing microeconomics and price elasticity with you this week. The basics, as you know, are that when you reduce the price, you'll sell more - unless you're selling parachutes, then customers might get suspicious! Plotting the volume for different price points gives you a graph. Price elasticity is one of the first things you learn in business school – and it gave me a little "Wow, this is cool!" moment. However, keep in mind two things. First, it has limited practical value when setting prices unless you have very high sales volumes and lots of historical data. I've really only seen it work for grocery stores - people do love their discounted avocados. Second point on pricing, I had a bestseller years ago that generated over 200 million NOK in revenue. We started with a cost of $90 and were selling at 1,995 kroner, including VAT. Thanks to increased volume, we reduced our cost from $90 to $55. "June, what would you do?" We could've reduced the price to 1,495 kroner, and microeconomics suggests volume would increase. How much depends on price elasticity. I didn't change the price, and here's why: all marketing fundamentally boils down to two things - "Why us?" or "Why one?" "Why us?" is when customers choose between similar products, and "Why one?" is when you convince customers they need a product they didn't know existed. Since our product was in the second category, I kept the price and spent an additional 300 NOK on marketing – and volume took off.

There's a lot of talk about AI these days and how it will replace jobs, etc. Don't worry. If you had asked people over the past 60,000 years, "Would you rather live today or in 100 years?" the correct answer has almost always been to live 100 years into the future. Yet, almost everyone I meet thinks living today is better than in 100 years. If you trust history, that's unlikely. With the advent of AI, I believe we're living in the most exciting time ever, and people today will be like the founding fathers of a new era - with fewer powdered wigs but a massive impact on how the world will be in 1,000 years. "This is your chance, your opportunity." Here are a few AI reflections:

• AI will make the average good and the many greats good (laziness).
• The value of being great will increase tenfold, as will the value of creativity and judgment.
• I don't believe in mass unemployment. If you do, then you'd have to believe AI will solve all our problems. I think humans will never run out of problems to solve
• The world will change more in the next 5 years than in the previous 50.

Now, let′s get into what is happening on my side

You know, starting something new is like juggling flaming torches - you never know which problem might burn you next. Here's what's on my plate this week.

Today, I spent hours tumbling down the EAN code rabbit hole (those barcodes that make products look like they've been to jail). Our two products, the Night Booster, and the Pads need their own EAN codes to be sold in retail and on Amazon. There are barcode resellers, but the codes might not work and could violate Amazon's policies. So, it's time to register with the official EAN authority. Because who doesn't love more paperwork?

Great news: I just learned that tooling will be completed by October 25th. If the universe is feeling generous, we could get a few hundred units before Christmas. But here's the dilemma: When should I start selling them? Should I list them with a future shipping date or just pretend everything is normal and in stock?

Selling a product that won't ship until December 5th can scare off potential buyers - they might plan to come back later and then forget. I'm thinking of launching it as a regular product on November 5th. Then, I'll email everyone who orders early to let them know the next shipment arrives in early December and throw in an extra set of Aroma Pads as a thank-you for their patience. What do you think about this plan, June? Is it clever, ethical, or am I just asking for trouble?

Some of my worst business nightmares have sprung from product delays. Remember that tiny vibrating whisk for sauces? We sold out faster than free ice cream on a hot day. Another 5,000 units were due on December 10th - just in time for Christmas. The products took off from China on the 9th, and everything looked great, but tight. Until... a snowstorm blitzed Rotterdam. All flights were canceled. I was glued to the weather report every ten minutes for three days. When flights resumed, the backlog was insane. Stress levels were through the roof. Do we call customers to break the bad news? Do we split shipments for those who ordered multiple items?

Finally, the plane took off. I contemplated hijacking the shipment from the airport myself, but DHL assured us they'd deliver ASAP. The stirrers were supposed to arrive after lunch, and I had 1,200 orders printed and ready. The shipment rolled in at 2 p.m. We tore into boxes and packed as our lives depended on it. At 3:15, the postal service showed up to collect shipments. I dispatched Hilde with cupcakes to charm the postman. Her mission: stall him as long as possible. We managed to pack another 100 units during their sweet distraction. Success! All customers received their products by December 21st. “You see, June, why do I love physical products?”

With all my love and support,

Dad

P.S. If a man in his fifties takes a condescending tone toward your work, assume he means no harm. If it happens again, email him explaining your perspective and ask if you've misunderstood. If it repeats, you have choices: bite your tongue, quit, or go to war (call me—I’ll be your tactical support).

P.P.S. I'm considering running the Paris Marathon. It would be a fantastic excuse to visit you - and possibly regret all my life choices around 36 km.