The Charity Chat

Undertaking an MBA changes the way one’s mind works.

In fact, right there is an example; I would previously have written “your” instead of “one’s”. Formal writing is inherent throughout the many assignments that we have done this year. But the changes have been far, far more serious than changing my word-usage.

The changes have also affected my pub chat.

Recently, sitting in Murray’s bar on Bow Lane, Dublin, I was talking to a friend about charity events. Specifically, she perceived the spending of money on charity events such as black-tie balls as a waste of money.  In other words, she proposed that the money spent on them should be put towards the charity itself, thus earning the charity more money.

In reply, I began by explaining a fundamental business concept that the price of a product or service has to exist somewhere between its perceived value by the consumer and the cost to produce that good or service:

Benefit (value to the consumer) – Price – Cost

In the case of charity events, the perceived value of a ticket to a black-tie ball is greater than the value of a ticket to a session down the pub. Of course, the costs of organising a black-tie ball are higher than the costs of organising a session in a pub.

I continued by explaining that the difference between the money that can be raised through the sale of black-tie event tickets and the costs of organising said event (especially for charity) far exceeds the profits that can be made by having the same people down in the pub for a networking session.

It was at this point I realised that I have changed. My pub arguments have become far more coherent and informed…especially given the number of pints I’d had. So I decided to sit back, relax and watch the end of the Eurovision.

– Jamie O’Connell