Always the Long-Term
I still can't over how my convertible survived my stupidity and the flash flood I subjected it to. Two days removed from floodgate, everything seems to be working. The stereo, speakers, automatic seats, dashboard controls.....everything! Unbelievable! Not only that, but the car is 19 years old. So today, a huge shout-out to the engineers at Nissan who created something nearly two decades ago that could withstand all that life would throw at it. I think it's truly remarkable!
It makes me think about a concept TJ and I discuss often as we build Northern Vessel. Whenever a decision needs to be made, we filter it through the lens of the following question: Which option is better for the firm 10 years from now? It's always about the long-term for us. That may not always sound fun, but in my experience, it ALWAYS yields the best outcomes. However, in order for that principle to carry forward, we must be willing to accept delayed gratification.
Here's one example where we didn't follow this principle. In December 2023, we thought it would be fun (and financially advantageous) to run a crazy gift card special for the Christmas season. For a 15-day window, we ran a buy-one-get-one special on $20 gift cards. For every $20 gift card purchased, customers would receive a $20 gift card for free. We had some strategic reasons for pulling the trigger on such an insane idea. One of the reasons was to boost cashflow for some upcoming projects. In just 15 days, we sold nearly $30,000 of gift cards......and gave away another $30,000 of gift cards.
While that cashflow influx (and the other ancillary benefits of getting thousands of NV gift cards in stockings and under trees) was nice, it was a decision that benefited us more in the short term than the long term. Fast forward 19 months, and we're just now starting to run on a net positive monthly gift card variance. When we made that decision, we failed to consider which decision would be better in the long term.
I'd like to think those Nissan engineers who spent lots of time, energy, and money designing and building a car that would thrive in the long term. Sure, they could have cut corners and boosted gross margins by producing a slightly cheaper vehicle, but they chose the long-term. As a customer, I'm so grateful for that. Today, I tip my cap to those engineers from 20+ years ago who considered the long term and saved my bacon two decades later.
It's so hard to view life through this lens. After all, the sexier and more enjoyable decision is almost always the one that benefits us more in the short term. Signing up for car payments vs. investing monthly. That Chipotle burrito vs. paying down debt. Focusing on our core products vs. grabbing whatever income streams we can find. Obsessing about excellence vs. trying to drum up more customers. Hitting the fast-food drive-thru vs. making a healthy meal at home. Taking a high-paying job we don't care about vs. a lower-paying job we might love.
If we were wise, every decision would be framed through the lens of what benefits us more 10 years from now. We might not like the answer (today), but our future selves will thank us soon enough!
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