A note from Daniel

Scarcity is the business model of the luxury sector. Luxury brands take advantage of one particular aspect of psychology: the fact that the more scarce something is, the more we want it. Hermes can make more Birkin bags but chooses not to. Fewer than 100,000 Birkins are made every year, and the process of buying one is famously difficult-it involves either waiting for months or having a purchase history with Hermès. This controlled scarcity is key to the high prices of the luxury sector.

Daniel The Great Mental Models, Volume 4, page 15 · December 4, 2024 Save to shelf
Notes like this take four seconds in Booksense. Scan the paragraph, it lands on the right page, and comes back for review later. Take your first note

More from readers of The Great Mental Models, Volume 4

More from Daniel

See their profile

Stop losing the best parts of what you read.

Booksense pushes your highlights back to you for review, so a note from page 174 is still yours a year later. Free on iOS.

Daniel on Booksense 5,999 notes 387 hours of reading