4 ms·

This. Fashion and luxury is crazy. Sales may increase as you increase the price. This video explains the Swedish concept of "vasking", essentially throwing exp

by tormeh 12y ago

This. Fashion and luxury is crazy. Sales may increase as you increase the price. This video explains the Swedish concept of "vasking", essentially throwing expensive liquids down the drain to demonstrate how little their price tags matter to you: https://m.youtube.com/watch?v=uhEpMJ3n_wU https://m.youtube.com/watch?v=uhEpMJ3n_wU (it's also hilarious) Making stuff that people use exclusively to show off is such a great business that the only reason everyone's not trying to do it must be some misguided faith in humanity.

glesica 12y ago
> the only reason everyone's not trying to do it must be some misguided faith in humanity. Or an inability to keep a straight face through an entire sales pitch. I doubt the effect works if the sales person or market copy actively mocks the buyers' intelligence.
gruntled 12y ago
Luxury isn't necessarily crazy, it can be rational economic signaling: http://www.joshuakennon.com/mental-model-veblen-goods/ http://www.joshuakennon.com/mental-model-veblen-goods/
- alexbecker 12y ago
  My favorite example of this is drug dealer's cars. In Gang Leader for a Day, the author recounts how lieutenants in a Chicago drug gang who made only 30-40k/year had to spend almost all of it on their cars, and often had to live with their mothers as a result.
  - omegaham 12y ago
    This applies to a lot of jobs. Lawyers at certain firms are expected to wear expensive clothes and drive nice cars; the guy who drives a Geo Metro to work and wears a "meh" suit is frowned at. Even more ridiculous is the fact that like the drug dealers, the fashion is driven by the richest people, and the less secure and wealthy folks follow. There's a great book called The Millionaire Next Door, where they look at the spending habits of millionaires. One of the things that stuck out was the fact that a lot of these people have "boring" jobs that don't have "face" to keep. No one really cares about what the owner of a janitorial company or a welding supplier looks like, so there's no pressure for him or her to have the Right House or the Right Car or the Right country club memberships. In contrast, the book notes a couple of doctors and lawyers who are really active in their professions' social scenes and are living paycheck-to-paycheck despite earning far more. Personally, I like my Shittic (beat-up Civic that is missing half the paint). Every month that it keeps running is another month that I don't have to make a car payment. My girlfriend winces every time she sees it, though...
Udik 12y ago
>Making stuff that people use exclusively to show off is such a great business that the only reason everyone's not trying to do it must be some misguided faith in humanity. This must also be the reason why this kind of manufacturing is prominent in Italy, where any faith in humanity is long gone.
TazeTSchnitzel 12y ago
In a society with ridiculous and increasing inequality, you make a fortune by investing in what the ultra-rich and the very poor will buy.
- icebraining 12y ago
  How does that fit with Apple rolling in cash?
  - zaphoyd 12y ago
    There is probably more than one way to make a fortune. That said.. Apple's upcoming watch product appears to be employing this strategy.
furyg3 12y ago
Why doesn't this work with taxes? I feel like the US government needs to steal some marketing team from champagne companies... I mean, only the very rich can voluntarily pay 95% of their income in taxes! Nobody else can do that! Go ahead and try to beat me! The more you believe paying taxes is a 'waste of money' the better it works!

by tormeh 12y ago

glesica 12y ago

> the only reason everyone's not trying to do it must be some misguided faith in humanity. Or an inability to keep a straight face through an entire sales pitch. I doubt the effect works if the sales person or market copy actively mocks the buyers' intelligence.

gruntled 12y ago

Luxury isn't necessarily crazy, it can be rational economic signaling: http://www.joshuakennon.com/mental-model-veblen-goods/ http://www.joshuakennon.com/mental-model-veblen-goods/

alexbecker 12y ago
My favorite example of this is drug dealer's cars. In Gang Leader for a Day, the author recounts how lieutenants in a Chicago drug gang who made only 30-40k/year had to spend almost all of it on their cars, and often had to live with their mothers as a result.
- omegaham 12y ago
  This applies to a lot of jobs. Lawyers at certain firms are expected to wear expensive clothes and drive nice cars; the guy who drives a Geo Metro to work and wears a "meh" suit is frowned at. Even more ridiculous is the fact that like the drug dealers, the fashion is driven by the richest people, and the less secure and wealthy folks follow. There's a great book called The Millionaire Next Door, where they look at the spending habits of millionaires. One of the things that stuck out was the fact that a lot of these people have "boring" jobs that don't have "face" to keep. No one really cares about what the owner of a janitorial company or a welding supplier looks like, so there's no pressure for him or her to have the Right House or the Right Car or the Right country club memberships. In contrast, the book notes a couple of doctors and lawyers who are really active in their professions' social scenes and are living paycheck-to-paycheck despite earning far more. Personally, I like my Shittic (beat-up Civic that is missing half the paint). Every month that it keeps running is another month that I don't have to make a car payment. My girlfriend winces every time she sees it, though...

Udik 12y ago

>Making stuff that people use exclusively to show off is such a great business that the only reason everyone's not trying to do it must be some misguided faith in humanity. This must also be the reason why this kind of manufacturing is prominent in Italy, where any faith in humanity is long gone.

TazeTSchnitzel 12y ago

In a society with ridiculous and increasing inequality, you make a fortune by investing in what the ultra-rich and the very poor will buy.

icebraining 12y ago
How does that fit with Apple rolling in cash?
- zaphoyd 12y ago
  There is probably more than one way to make a fortune. That said.. Apple's upcoming watch product appears to be employing this strategy.

furyg3 12y ago

Why doesn't this work with taxes? I feel like the US government needs to steal some marketing team from champagne companies... I mean, only the very rich can voluntarily pay 95% of their income in taxes! Nobody else can do that! Go ahead and try to beat me! The more you believe paying taxes is a 'waste of money' the better it works!