Interesting timing coming off of the back of your previous video on Apple’s Vision Pro. Ferrari are masters at using scarcity to enhance the value of their brand. Apart from limiting the number of units produced for every model, Ferrari is incredibly selective over who can and can't buy from Ferrari. So much so if you resell one of their cars or modify it in any way, you’re blacklisted.
Great example about how ultra luxury brands profit through limited collections and selective about who can purchase their item. The same could be said for Michelin Star restaurants or even political individuals. You may have the money and the network, but you may be left out. These same customers will pay an “arm and leg” (or sell their least favorite child 🤣) to get their hands on the product or service.
@@thefutur Thanks. I think you have to be with luxury goods or high-ticket offers. That's why it's so important as creatives we start charging more for our work when it warrants it. It sets up expectations and sends the signal that you're getting what you're payig for.
@@fredricklee Thank you and you make an equally great point! It's amazing how much price and rarity dictates our perception of the worth of something. You can have an amazing offering, but if you're not setting up the right expectations you have no chance of creating any kind of buzz or interest.
That doesn't translate into being profitable though, there are some super car brands that aren't. People forget how much time and money they spent building their brand by building F1cars, if F1 circus wouldn't exist, Ferrari hadn't. Rolex is of the same nature for almost a century, so this is why compare the concept of transparency in selling random tickets to building a world brand is completely misleading.
Enjoyed the video Chris I love scarcity in marketing. But I still don't understand oversubscribing really well. If Daniel says that there was such a high demand(say 500 people), why didn't he make at least 250 spots available instead of 100?? That's 2.5X more sales. Why wouldn't that fancy restaurant(that you need to wait for weeks to get it) add just a bit more tables, so there's more profit? That way the demand is still the same, right? But the supply is a bit larger and they can make more money.
For there to be palpable tension, there needs to be about 4:1 ratio of signals to capacity. Ironically if I increase capacity, I lose the tension and the sales dynamic falls apart. If Rolex doubles their capacity (which wouldn’t be hard) their prices would fall and the tension around the sale would reduce.
So artificially constrict the supply and that will push demand up a lot. It's not nice but plenty of people are doing it (Apple, DeBeers, Rolex, and even Sony with the PS5). I think there's more justification for a design studio. It's like you mentioned. If you take on too much work, you spread yourself too thin, and then it's not good for anyone.
Correct, it's an "artificially constrict" that creates demand. It's one of the reasons we always push our students to charge more, because the more expansive the item, the more value they will put into it.
That Gandalf gif was perfect lol😂
Wheyy good to see ya Daniel ☺️
Thanks!
Nice...good one...
Thank you
Naim from Ghana! Love your content Chris Do!
Thanks for watching!
Another common sense gem from Daniel 💥
Very interesting. Thanks for sharing this concept!
Glad you liked it! Any takeaways you got from the video?
Such a great video!
Thank you!! What did you like about it?
Great Video.
I learn a lot from your videos.
Thanks ❤.
Glad to hear that! Any big takeways you would like to share?
Great video thanks Chris!!
I'm loving these this videos. I always pay keen attention.
Interesting timing coming off of the back of your previous video on Apple’s Vision Pro. Ferrari are masters at using scarcity to enhance the value of their brand. Apart from limiting the number of units produced for every model, Ferrari is incredibly selective over who can and can't buy from Ferrari. So much so if you resell one of their cars or modify it in any way, you’re blacklisted.
This video is part of a longer podcast with Apple vision video. But good point they’re very selective about their product.
Great example about how ultra luxury brands profit through limited collections and selective about who can purchase their item. The same could be said for Michelin Star restaurants or even political individuals. You may have the money and the network, but you may be left out. These same customers will pay an “arm and leg” (or sell their least favorite child 🤣) to get their hands on the product or service.
@@thefutur Thanks. I think you have to be with luxury goods or high-ticket offers. That's why it's so important as creatives we start charging more for our work when it warrants it. It sets up expectations and sends the signal that you're getting what you're payig for.
@@fredricklee Thank you and you make an equally great point! It's amazing how much price and rarity dictates our perception of the worth of something. You can have an amazing offering, but if you're not setting up the right expectations you have no chance of creating any kind of buzz or interest.
That doesn't translate into being profitable though, there are some super car brands that aren't. People forget how much time and money they spent building their brand by building F1cars, if F1 circus wouldn't exist, Ferrari hadn't. Rolex is of the same nature for almost a century, so this is why compare the concept of transparency in selling random tickets to building a world brand is completely misleading.
1 Year ago, never have I thought that The Futur will try the infiinite grass style for one of their thumbnails 😂 Great video!
Hey we’re all about testing out what works 🤷♂️
its a funny comparison of airlines with rolex :)
Right but it’s a good one!
@@thefutur yea an awesome one :)
Enjoyed the video Chris
I love scarcity in marketing. But I still don't understand oversubscribing really well. If Daniel says that there was such a high demand(say 500 people), why didn't he make at least 250 spots available instead of 100?? That's 2.5X more sales.
Why wouldn't that fancy restaurant(that you need to wait for weeks to get it) add just a bit more tables, so there's more profit?
That way the demand is still the same, right? But the supply is a bit larger and they can make more money.
For there to be palpable tension, there needs to be about 4:1 ratio of signals to capacity. Ironically if I increase capacity, I lose the tension and the sales dynamic falls apart. If Rolex doubles their capacity (which wouldn’t be hard) their prices would fall and the tension around the sale would reduce.
So artificially constrict the supply and that will push demand up a lot. It's not nice but plenty of people are doing it (Apple, DeBeers, Rolex, and even Sony with the PS5).
I think there's more justification for a design studio. It's like you mentioned. If you take on too much work, you spread yourself too thin, and then it's not good for anyone.
Correct, it's an "artificially constrict" that creates demand. It's one of the reasons we always push our students to charge more, because the more expansive the item, the more value they will put into it.
Fair!
Get the angry dutch nico over here