We all want quality products at the best of deals and the lowest of prices.
But, I say these two things don't go with each other...
You will always have to pay a premium if you want quality, and if there's no premium to be paid, then it's probably not a product of high caliber.
"If at least 10% of your customer base doesn't complain about your prices being too high, then you're charging too low" -
I don't remember whose quote this is, nor did I accurately state it here exactly in their words; yet, I remember hearing something like this quite a while ago. And even though it didn't make sense back then, it does make sense now.
You just can't please everyone, there will always be someone trying to lowball your efforts, always questioning your products and quality. So, instead of trying to please everyone, focus on the quality of your product, and one day, the product itself will do all the talking.
Remember, overpriced and expensive aren't the same thing, there's a distinct difference.
Customers and clients trying to lowball, always trying to cut in a massive deal, it's quite normal I guess; not everyone is capable of appreciating quality items. Even I used to be like that. I used to question the high price tags of "luxury goods", I always disregarded a company's heritage, and the craftsmanship of an artisan.
Because, if a machine can do it for less, in a humungous quantity too, then why not go that route and save a few extra bucks? Sound fair, right?
However, overpriced products do exist, and some people would quite happily pay as well. There are people out there selling $$$ thousands worth of bottled water, canned air, gold-coated food, and whatnot. These could be categorized as overpriced, a total gimmick I'd say. These items are more of a "once-in-a-lifetime experience", I guess. I don't know anyone who's crazy enough to be spending that much on such frivolous items, on a weekly or monthly basis.
Yet, maybe there are some crazies out there willing to spend that much daily. You never know...
Let's take Swiss watches as an example, a Rolex may be expensive, but it does tend to hold value, and some pieces can appreciate in price too. The same goes for exotic cars, if you choose to "invest" in the right one and take good care of it.
Now that I'm in this niche of making "quality products" most of which are handmade, I see the effort that goes behind it all; especially the amount of time that goes into the whole process.
From design, forethought, and fastidiously patient efforts, to constant innovation and improvements, you have to tick as many boxes as possible. The service and behavior play a bit role too. Furthermore, an adept set of hands isn't easy to find, nor is anyone born with it. I have fairly shaky hands, which is a dime a dozen, and it quite instantly excludes me from being an artisan.
Then there's a thing called heritage...
A Rolex isn't just expensive because it is made of rare materials, encrusted in shiny additions, and is made in a limited quantity; nor is it only in the making, through the use of an adept set of hands. You have to take into account their century-old heritage.
The year Rolex was founded, was 1905, a Rolex around that time surely wasn't as "expensive" as it is now. The same goes for a red-hot Ferrari and a top-dollar bespoke Savile Row suit. A Ferrari F40 during release was $400k, and now it goes for over $ 2 million. A McLaren F1 back in the early 90s went for around $800k to a million dollars, and now they're auctioned off for $20 million a piece. I say that's a win! Even if you consider the absurd inflation rates, you're still getting some killer profits in there, at least double.
I've always loved the McLaren F1, and I still do. Alas, I was only short a million dollars back in the '90s, and "unfortunately" I was an infant during its production years. Or else I would've been up $20 million bucks right now; all thanks to a small investment of a million dollars, and an eye for cars.
You'd be able to book such profits for the 70s Rolex Daytona as well. A wristwatch. which back then cost only a few hundred dollars; people even considered it to be an "ugly" watch. In the present time though, vintage Rolex Daytonas can range up to $100k. That's like a 100x to 200x in profits. The catch, however, is a long wait of half a century. Because only now people are starting to appreciate such timepieces. And quite obviously, Rolex too has made quite a name for themselves.
Sounds just like the story of Bitcoin, eh? But Bitcoin is just over a measly decade old. Even just 5 years ago not many people cared about it, and look at it now...
Sometimes a century-old heritage and the name itself can add incalculable value....
Now, even though we don't have a thing called heritage in our little business, I believe we do have the products and the skills, to build something that'll have an impact.
We may not be the next Rolex or Ferrari, we don't plan to be; yet, I hope that what we have, is at least sustainable. From here on it is just a matter of staying focused, while maintaining the work ethic and understanding among the founders.
I'd love to see how far we can go in the next 5 years or so.
A long way to go! 🔮
