By Tony Samson
CAN the same task under different situational contexts be perceived and priced differently? Dan Ariely, writing about irrational behavior in purchasing decisions, notes the distinction between social and market norms, and how they are sometimes blurred.
The distinction between a social situation where even hard tasks (washing clothes for the family; cooking Christmas dinner at home) are offered for free and a market norm where the same services (doing the hotel laundry; dining out for the holidays) are charged appropriately. Such distinctions can get entangled in a culture that tries to ensure what Filipino anthropologist Mary R. Hollnsteiner calls, Smooth Interpersonal Relationship (SIR) which avoids discomfort and embarrassment. Can someone staying in a friend’s house abroad be treated as a guest, for free? What if the visit extends to three months? Can hotel (or Airbnb) rates then apply? (Hey, Buddy, you need to move out or pay rent.)
Even in the corporate world, not all relationships are governed by market norms with contracts defining rights, obligations, fees, and “deliverables.” Does a professional consultant who gives solicited advice on a business issue like asset reallocation simply be treated for lunch? (Next one is on you.)
Informal consultations covering business topics over social occasions like lunch or parties are trapped in Ariely’s social norms. Even consultants who give advice for a living feel awkward moving the informal consultations towards a market norm, and putting a value on their inputs, especially when these have been acted on. If the consultant even hints of possible compensation, the timid request to formalize the arrangement is met with an incredulous stare — you mean you’re going to send me a bill for your jokes? Remember who paid for lunch.
Architects, lawyers, PR operatives (whether for demolition or spiking of news stories), doctors, ghostwriters, landscape designers, and tax accountants show agility in avoiding this jam of shifting the context from a social to a market norm. They have a ready response when anyone attempts to bring up a problem for free consultation — I have this occasional ache below my third rib. Before the complainer can remove his barong, and get any farther, he is quickly instructed to make an appointment with the cardiologist’s secretary next week for a proper diagnosis at the clinic, so the problem can be properly evaluated…and billed.
Still, even the successful professional who gets paid by the hour for his advice can be generous with free insights. He understands where the line for market charging can be drawn as when contracts and pleadings need to be drafted. A seemingly generous sharing of ideas can be an effective demonstration of expertise and justification for high fees later. It is part of marketing expertise, like free samples of shampoo sachets.
In our culture, someone who puts everything on a market norm, including informal opinions, is perceived as crass. The vernacular characterization of such a consistently money-for-my-opinion approach is contemptuous, “mukhang pera,” which roughly translates to: “you look like Jose Abad Santos with his two companions.” The putdown loses something in the translation.
In the realm of philanthropy and good works, market norms can be subsumed under social advocacy. Legal skills can be provided pro bono in the service of persecuted sectors, like senators in dire straits or victims of road rage.
The blurring of social and market norms sometimes becomes a problem over time. A professional relationship initially based on market norms entailing the provision of wellness services on a transactional basis can evolve into a more complex bond with expectations and financial commitments, the inflicting of pain with unanswered text messages (I’m still here, waiting), even possessiveness and computation of past investments made.
The emotional roller coaster of pain and relief is not limited to dental care. (You didn’t use to charge for prophylaxis.) It can apply to other situations where regular flossing doesn’t help.
It’s best for the professional who wants to establish the applicable norms for her services to establish a clear protocol. Having a market-related framing, like an office, clinic, or spa, promotes the presumption of fees to be paid. However, an invitation for a tête-à-tête, with no expectations of any other services, should be established right away — do you really just want to have coffee?
A.R. Samson is chairman and CEO TOUCH xda
ar.samson@yahoo.com
