Competence is your knowledge and ability in a particular subject area. Competency can be real, perceived, or imagined. True competence comes from life-long learning and experience that gradually taught you what you know. Perceived competence comes from other people judging you based on external factors and their experiences with you.

A study shows that competence can increase sales. An experimenter in a mall approached unsuspecting patrons and asked them to buy raffle tickets. In the first situation, the experimenter dazzled the shoppers with his incredible calculating ability when in actuality he was using a concealed communication device. In the next situation, the experimenter showed poor calculating skills and made a fool of himself. In the third and final situation, the experimenter did not have any incredible skills. The study found that the shoppers bought considerably more raffle tickets from the supposed calculating genius. The situation where the experimenter showed extreme competence increased sales.

We consider others to be competent when we see them continually learning and advancing their training and education, being successful in what they do, or having a strong track record with all the people they have worked with. Ultimately it comes down to