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The sunk cost fallacy.

pest control software sunk costs by Pocomos / January 29, 2016

The sunk cost fallacy and how to avoid it.

In economics, sunk cost is a cost that has already been incurred and thus cannot be recovered.

People fall for the sunk cost fallacy all the time. Think you’re too smart to fall for it? Think again.

Remember that time you were at a restaurant and justified finishing the five-course meal (even though you were full after the third course) because you already paid for it and didn’t want it to go to waste?

Or when you started watching a movie and you could tell by the opening scene that it was going to be horrible? Since you drove all the way to McDonald’s and paid $1.50 at Red Box you ended up finishing the two-hour movie anyways.

In the past year I drove about an hour one way to get to my favorite biking trail. Both times it started to rain when I got there. Because I invested so much time preparing and driving, I forced myself to ride the trail even though I froze like a popsicle and had mud flying in my eyes the entire ride.

It’s not smart, but it’s okay to fall for the sunk cost fallacy every once in awhile in your personal life, but don’t let it happen to you in business. There’s too much on the line. Just because you invested in a new printer, ink, and paper to do your invoicing, doesn’t mean you need to stick to a paper system if you know that Pocomos will help you be more efficient and grow your business in the long run. You may have invested time and resources into creating your own software but you’ve found it’s costing a lot more than anticipated and keeps falling short. Whatever your investment, don’t let your sunk costs sink you. Give Pocomos a call.

"Don't dwell on what went wrong. Instead, focus on what to do next. Spend your energies on moving forward toward finding the answer."

--Denis Waitley