.it’s hard to sell simple and it’s simple to make it hard to choose

I got inspired to write this by David Heinemeier's (the co-founder of 37signals) latest post, where he said:?

It's hard to sell simple, because simple looks easy, and who wants to pay for that?? Of course, everyone?says?they want something simple, but the way they buy reveals that they usually don't.

...so the companies make it look complex - this is the secret that the merchants have long since figured out to drive sales. It serves them two primary purposes. First - to confuse, so you can’t easily compare to others and define true intrinsic value. Simple products can seem interchangeable, making it hard to stand out in a crowded market and easy to be perceived as commodity. Second - both clever and sophisticated implies something special, and only what's special commands a premium price tag.?

I remember many ridiculous ads that claimed that I should buy a bottled water x, because it contains 0 calories, or that a very famous lollypop brand is good for a kid’s brain because it contains lots of glucose, or that nutella is a great source of a balanced diet and it's ideal for breakfast. Now, that’s the most extreme stretch of benefits that are given, but some sneaky brands use them to stand out where, otherwise, there is not much differentiation in the product itself.

People often equate complexity with quality or effectiveness. It’s complex, therefore many people must have spent much more time on it to design and build. Clever and sophisticated beats basic and straightforward most days in the market.

Have you ever heard traders or mortgage brokers talk? Financial products often use complicated terminology to make comparison difficult. Credit cards are an excellent example. We know they can be problematic - we've all heard horror stories of interest rates mounting exponentially after a missed payment. Yet people are lured by reward systems and delayed repayment plans, while changing interest rates and confusing terms make it challenging for consumers to determine the best deal and maintain healthy budgets.

Deep down, most people want to feel special and unique. That's far more important than merely purchasing a solution. Basic, cheap, or even free options are often seen as being for the "common fool" with simple needs and simple problems. "My needs are different," thinks everybody.

People buy with emotions, and then they add logic to their decision. If you manage to speak to person's values and understand their wants, they will convince themselves that your solutions is exactly what they need. And once they made the decision, they will ignore facts that say otherwise, and use all arguments, however irrational, to feel good about their decision.

Companies exploit this by creating anxiety about missing crucial features to upsell more complex products. Few people have the courage to admit their life and work isn't that complicated and they don't need the latest car or phone upgrade.

The time, when simple is desired?

There are times when simplicity is not just desired, but revered. Products that are inherently complicated but intentionally made simple to use and understand often command respect and loyalty. Steve Jobs, Apple's founder, famously advocated that it's incredibly hard to make something simple.

Ironically, creating truly simple and effective products often requires more thought and development, potentially making them more expensive to produce. The challenge then becomes: how do you achieve both simplicity and a premium price? (but that's a topic for another post)

The tech industry's complexity syndrome

This phenomenon is prevalent in the tech industry. Basic problems that people could easily solve themselves, cheaply and quickly, are transformed into scary and insurmountable challenges that only a sophisticated solution (usually on a subscription) will cure.

Project management tools, for instance, are sold with numerous features that require constant updates and support, justifying a subscription model. There are rarely high margins in actually selling someone something that they then own outright. It's much more profitable to rent it to them and make it hard to migrate, effectively locking them in.

The low up-front cost may seem low-risk and like a no-brainer, but when you compare the total cost over time versus paying upfront and owning it, it's rarely a great deal (even accounting for the time value of money).

You own nothing and they convince you should be happy. By what sorcery? FOMO, mostly. Vanity, sometimes. Sluggishness to analyse and think - often. Pride, definitely. David things that he more insecurities the merchants of complexity can trigger, the easier the sell.

Sometimes, the absurdity of complexity-driven decisions reaches ridiculous proportions. Take, for example, the case of New York City in 2022. The city paid McKinsey a whopping $1.6 million to come up with a bold solution to its trash problem.

Their innovative fix? Wheelie bins.

When opting for complex, established solutions, you're often paying for: a) reputation b) perceived security and c) A markup that can be 100 times or more compared to simpler, smaller alternatives.

It's a well-known myth that startups always fail. In reality, startups often struggle because established companies don't give them a chance. If given an opportunity, startups can often provide much more value for your money - it's literally their mission to prove their worth.

Breaking the spell

The good news is that the spell of complexity only binds you as long as you choose to believe in it. If you decide tomorrow that all this invested effort and money (known as the sunk cost fallacy) isn't worth it, you can break free. You can always stop and choose basic. It's that simple and that hard.

Whether that means daring to connect a computer directly to the internet without layers of complexity, dumping that micro-services monstrosity, or ditching Slack to an open source alternative - it's all within your power.

Why should you buy a monstrous Platform-as-a-Service (PaaS) solution when you'll never use 90% of its options? Those extra features are often there to lock you in. Then, because of their complexity, you of course need third-party integrators. Products marketed as requiring expertise to use often command higher prices, creating a self-perpetuating cycle of complexity and cost.

Most products do also have exaggerated benefits and potential returns, but the goal is to lure and lock you in to subscription or 5-year enterprise deals, and try to prevent you from churning before the end of your contract (just like politicians do pre-elections :)?

Isn't it better to just buy what you need?

I believe that modular platforms are the future. Pay for what you use, and nothing more. More flexibility, cost-effectiveness, and simplicity without sacrificing functionality.

Many people think complex means better. But choosing simple can be brave. It means knowing what you really need and saying no to extras you don't. This takes guts when everyone else is going for the fanciest option.

Go for simple and declutter your mind.?