more expensive = more sales and more profit

Posted At : June 22, 2008 10:44 PM
Related Categories: Web Dev, Crazy

I know that sounds strange, but often it happens. Compete with every other person for the sale of a cup of coffee and you have a hard fight. Double or triple the price and make everything look upscale and you have a guaranteed set of clients. You may sell a bit less (maybe) but the profit marine will more then make up for it.

Well, that is the theory anyway. It is discussed much in business classes, specifically marketing. I often wondered if I could set up a site or service that would cater to those wanting to pay more for some reason.

Anyway, here is a perfect example of the attempt in action. Denon is selling a 1.5 meter ethernet cable for $500. Yup, $500 and its for 'digital audio' no less. I have to imagine there are a lot of people that buy this as part of a package. Vendors don't tell them it's the wrong thing, because they get an even bigger markup. Crazyness.

So, what web site can we build that resells this stuff? Surely the smart people who read my blog can find a way to take advantage of this peculiar part of human nature.

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Does the profit marine have a buzz cut? :P

# Posted By Book Kitten | 6/22/08 10:09 PM

Good post Josh!

Hal and I discussed the "high perceived value" concept during our "Changing the Game" talk at CFUNITED. I think those in the "high-end consulting" market leverage this same principal. When reputation (as expressed by branding) is the primary differentiating factor, the commodity (coffee, cabling, programming services,...) is perceived, purchased, and consumed entirely differently. I came across an interesting quote recently, "there are more millionaires in the world today than ever before and the DEMAND to be treated differently". That thinking doesn't only apply to millionaires of course. It applies to anyone who for one reason or another wants to a) gain emotional significance from the act of consuming a particular product or service, or b) remove as much "friction" (risk, time, effort, availability) as possible .

# Posted By Clark Valberg | 6/23/08 11:33 AM

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