IKEA. The effort is the product.
IKEA sells furniture you have to build yourself, with an Allen key and instructions that make no sense. It should be the worst shopping experience on Earth, but it is the biggest furniture company in the world.
THE GIST ON IKEA: "The Allen Key to Success"
Why should this be a disaster?
Every other furniture company delivers finished, assembled and polished. IKEA delivers a box of parts and says good luck. By every rule of business that should fail. Received wisdom says more effort from the customer means less satisfaction.
What is the IKEA effect?
When you build something yourself, even badly with leftover screws and a wonky shelf, you value it more than if it arrived ready made.
IKEA didn't do this deliberately. They made you build it to save on shipping. The emotional attachment is a total accident.
What is the lesson?
We assume value is in the product, how well it's made and how it looks. The IKEA effect proves value is in participation. The thing you help create is always worth more to you than something that arrived finished.
Perhaps the most underpriced insight in business. Everyone is trying to do more for the customer, while IKEA built a 50 billion dollar empire by letting you fill in the gaps.
Flat-pack or ready built?
Your take. One tap, then see how everyone else voted.
Quick answers
What is the IKEA effect?
A psychological phenomenon where you value something more when you build it yourself, even badly.
Did IKEA plan it?
No. They made customers assemble furniture to save on shipping costs, and the emotional attachment was an accident.
How big is IKEA?
Huw calls it a 50 billion dollar empire.
See you on the next one.
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