The Velvet Rope Economy
It seems to defy all economic logic, doesn't it? How can a business charge more for a handbag or a watch and see demand increase? This isn't just business, it's a carefully constructed magic trick. To me, these companies aren't just selling products, they are selling access to an exclusive club where the high price is the point of entry.
Take Ferrari, for instance. They don’t just build magnificent cars, they cultivate an aura of unattainability. By deliberately making fewer vehicles than people want, they create a mystique that allows them to essentially name their price. The years long waiting list isn't a bug in their system, it's the main feature. This same logic applies across the board, from the iconic fashion houses under Capri Holdings to the skincare potions from Estée Lauder, which might cost very little to manufacture but sell for a fortune because of the story and status they represent.