People do business with people they know, like and trust. Is it true?

No doubt you’ve heard it many times and no doubt you’ve asked yourself: 

1. Are they saying people don’t do business with people they unless they Know, Like and Trust them? ( Or if you prefer: people don’t do business with people they don't Know, Like and Trust them, or people only do business with people they Know, like and Trust.)
2. Is it true? Or at least is it always true?

Know? 

Well it depends what 'know' means. And it depends what ‘business’ means as well. 

But let’s be honest: we all do ‘business’ with people we don't actually know, and in many cases, have not even met before. 

For example, I spent a lot of money on a new car. Did I know the business I bought it from? Well I’d driven past it many times. Did I know the sales person? No. I’d never met them before.

Like? 

It depends on what is meant by like. 

Let’s continue with my car purchase. I didn't particularly like the sales person but I wasn't there to like them. I was there to get a good deal and I got it. For $3K less, I put up with his arrogance and fake smile. 

Trust? 

Yes, I can go along with trust. I had to trust the sales person and the business to deliver what they said they were going to deliver and for the price quoted.

But it was a legitimate business as far as I could see, so what's not to trust? And I had to trust the government would back me up if they tried to cheat me.

Some other examples.

I recently updated my will. 

Like them? - it didn't come into it. Know them? - No. They were up the road. It was convenient. Trust them? - Yes. I trusted the qualifications they had on the door were accurate. I trusted they were going to give me a good price. I trusted they knew what they were doing. I trusted it wouldn't take too long.

Financial Planner

A few years back I went to a ‘financial planner’ who specialised in aged care services to get some advice for my father. 

Like them? - They seemed nice enough, but I wasn't there to like them. Know them? - Not from a bar of soap as the say. Trust them? - Again, yes. I did trust them. Sadly, some people of trusted people to give them advice and I've been pulling advised or simply ripped off. In my case, I trusted them, and I think I got good advice.

Conclusion

Surely, the saying 'People do business with people they know, like and trust' is true in some circumstances but not others.

My issue is not so much with Trust. It's with Know and Like. The only time Know and Like come into play is when you have to work very closely with the person for extended periods of time on an ongoing basis.

For example, if I was going into partnership with someone to buy and run a business with them, I'd want to do more than just trust them. I'd want to also like them. And what about know them? Maybe.

But do we really only do business with people we know, like and trust when, for example, we're: buying a car; buying a house; getting financial advice: getting business advice; booking a holiday; buying a book; etc. I doubt it. When it comes to things like these, other factors become more important. things like convenience, ease of purchase, quality and cost.

I am of course, happy to have your thoughts on this. Anyway, whatever you're doing whatever you're up to, look after yourself and your friends and family. All the very best, Mark.