The inverse value / luxury curve | Seth’s Blog


For most products and services, we rate them on a curve.

Sure, the low cost airline seat was cramped, but that’s okay because it was cheap.

Of course this Camry doesn’t look or drive like a Porsche, don’t be silly …

But the opposite is true at the high end. When luxury goods are compared to luxury goods, the narrative is: “The latter has to be better, in absolute and relative terms, precisely because it’s more expensive.”

And so hiring McKinsey costs 10 times more than hiring a former McKinsey consultant. And so it’s worth more.

And so, $ 150,000 elephant-sized stereo speakers (yes, they exist) are much better than $ 5,000 speakers (can’t you see?)

It goes beyond the standard understanding of a Veblen Well. Because in addition to being more expensive, these super-luxury products are less effective, more difficult to use and usually pain in the neck. This is part of their appeal.

(And yes, the same goes for luxury corporate products, like software and IT consulting …)

Price accordingly. And listen to the reviews with cautious skepticism.



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