Bad at Math

In the past I have noted in the space that mathematics was never my strong subject, which turned out to be less of a problem than you would probably expect given the amount of quantitative analysis commonly found in Management research. For most of my career I have gotten around this by using analysis methods that can be done using programs like Minitab and Access, and sometimes in Excel using the Solver function or just running pivot tables. I’ve also made extensive use of one of my favorite management principles: “Never be afraid to ask for help.” But in the long run the ability to do simple arithmetic in my head has taken me further than any of my long-suffering math teachers could (reasonably enough) have imagined. For example, I understand why a distilling company that has been in business for less than one year is probably lying about their five-year-old product…

You can pick up the Daily Beast story if you want the names of some of the companies involved in the scandal, but the basic concept is that for the past few years there have been a large number of small companies entering the distilled spirits market with what they claim are “craft distilled” products – allegedly hand-made and hand-bottled in small batches using an artisanal process that is somehow superior to that used by companies that have been producing quality product for over a century. However, if you read the fine print (and look up said company’s incorporation documents) you will find that some of the people claiming to have distilled and aged their own products are actually using beverages distilled by a large-scale factory operation in Indiana and then sold in bulk…

Now, it’s important to remember that none of these things are illegal as such, assuming the company is using all of the right disclaimers. Saying that a given bottle contains liquor aged five years when the contents were distilled last week is a crime, but saying that we age our product for five years isn’t – the company may indeed be in the middle of its first five-year run of product and could just be selling liquor that someone else aged for five years until that first run is ready. If all of these facts are clearly specified on the package then the company hasn’t actually violated any of the food labeling laws. Whether or not they have violated the truth in advertising laws is another matter, of course, and even if these business practices do ultimately turn out to be permissible under the law, the ethics of the situation are another matter entirely…

I have also pointed out from time to time over the years that if the government ever outlaws making money off of the stupid, the credulous, and people who are bad at mathematics our economy will probably collapse. Without product labelling and truth in advertising laws there would be nothing to stop companies from marketing liquids distilled from any available organic sludge as genuine imported liquor from whatever country is selling best this week, just to take the obvious example, and most of these laws do include the making of misleading statements on the list of things you are not allowed to do. But anyone who publically states that their company was founded in 2013 and their products for sale are five years old is effectively telling you up front that someone else made that product…

You’ll have to decide for yourself if the product is worth the asking price – and whether or not you are comfortable doing business with a company that is following the letter rather than the spirit of the consumer protection laws. There could be other problems that would result from such a practice…