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Do you want to build a wealthy business? You need to understand there’s two kinds of brands: a discount brand and a premium brand.
What is a discount brand? A discount brand is a company that discounts their products. They come out with a product, they set a price, later on they discount it, and they lower the price.
Premium brands never discount their products. They never lower their price. If anything, they increase their price.
We all buy from both kinds. We buy from premium brands and we buy from discount brands.
I don’t discount my products, I don’t have a discount brand, but I still buy from discount brands. I will look for coupons, I’ll find the way to get the lowest price.
The true value of a product is the least amount someone is willing to sell it for.
Millions of people buy Apple products even though Apple does not run discounts. They don’t have holiday sales, coupons, or Black Friday Sales, yet we still buy from them.
Why do we still buy from them? Because we know they’re not going to discount.
We look at the price and we say, “Oh, I guess that’s the price. I guess that’s what I’m going to have to pay if I want this. I guess I’m going to need to go save.” Where do we save money? Where do we find extra money?
We save money on the discount brands.
We scrounge around trying to find coupons and deals to save money, yet we’re in a totally different mindset. When we go into the deal-seeking mindset, we’re looking at it as an expense.
Everyone wants to keep expenses down. We want the best deal and all the discounts.
We want this so we can save money and then we shift into a totally different mindset.
We shift into an investment mindset when we buy premium products.
We want something of quality. The way we’re able to do that is by using all of the money we’ve saved up from those discount brands and we give that money to the premium brand.
Which do you want to be? Do you want to be a discount brand, or do you want to be a premium brand? You can’t be both.
You can only go one way or the other. You’re either heading towards the discount bin or you’re increasing value for your customers.
The only way to win as a discount brand is to go all the way and fully embrace your status as a discount brand. Apple, who does not discount, remains the most wealthy business on the planet. Premium brands are the most wealthy companies.
Premium brands will always be able to make more money.
Yes, you can win at the discount game. You can become a billion dollar company going all out on discounts, but you have to embrace that status. If you disagree with me and you want to discount, that’s fine, you can become a discount brand, but what won’t work is if you think you’re a premium brand and you run discounts.
You’re going to be partially on the side of premium, but you won’t go all out on discounts, which means you anchor yourself to mediocrity. You can’t win in either game.
The only way to win as a discount brand is to embrace your status fully as a discount brand, otherwise don’t do it at all. That is what the premium brands do and that’s how they become the most wealthy companies on the planet.
When you embrace your status as a premium brand, you become more profitable, you have better customers, you’re able to make better products, and you have an insane loyalty with those customers because you never have to discount to get their attention.
You can just launch a product and they will be lined up to buy it, because they know that that is the best price that product will ever be priced at.
Which do you want to be?