Here's How Rolls-Royce Makes Its Cars Look Cheap

Rory Sutherland tells how some products can be seen both cheap and expensive in different occasions.

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[fustibal]

Pricing something is one of the hardest things. This take makes it so clear.

[leoxd]

That is true. „Expensive“ and „cheap“ are relative and subjective.

[oliverwheatley]

£5 pint for a northerner is a crime. But in London you just made somebody’s day. Perspective is everything.

[papershark]

I saw a guy running behind a bus. Why are you doing that? I asked. I can save the £2 bus fair. Why don't you run behind a taxi and save £40? I said.

[onyigefavour]

My man just explained the concept of relative cost.

[azbeaux]

Rory Sutherland. I worked with him for years. Wonderful brain and a thoroughly lovely man. Taught me to think. I entirely respect him.

[Lord_Falcon]

Another great example is how fast food chains have been trying to frame themselves as restaurants. It worked for quite a while because they've been steadily increasing prices and earning more profit for years but it's recently hit a breaking point because quality hasn't improved and most people despite their marketing efforts still consider fast food as a cheap option which it no longer is. So demand has plummeted, along with their stock prices and to combat this they've come out with new "value" meals to bring back customers. It will take time though because people feel betrayed and many started cooking for themselves of finding other local cheap options.

[jcwarner]

It's called Behavioral Economics. Its the science that is used to design grocery and department stores. How to drive the customer experience and perception. It combines economics, psychology, sociology, and statistics. Hardest class I ever took.

[jdlalbertaboy]

The difference between Nespresso coffee and regular drip coffee is huge. I used to do bean coffee, grind my own etc. Yeah it was the cheapest way to do coffee and I thought it tasted good, until I tried a coffee from a Nespresso machine. Not sure what it does or how it does it but it tastes 100% better. I drink less coffee now because I get a great cup first thing in the morning at home from the machine.

[EremittV]

That’s why nespresso made a new machine. They messed up when patenting their pod design and lost a case to someone who was selling their own pods. Now you don’t need to buy 50c pods when you can also buy them for 10-15c.

[szynkers]

Nespresso tastes somewhat like normal coffee, instant coffee doesn't. I don't know the chemistry behind it, but it's an obvious fact to everyone who tasted them.

[ImDrizzt]

now i feel bad using a toaster, i could have just left the bread in the sun for awhile and save heaps

[bbboywaxr]

Whats with the supervillain background music . Lmao 😂

[ikvangalen]

It’s called anchoring
Set a high price as a benchmark making it easier to buy something “cheaper”

[philsurtees]

In Asia, where Red Bull came from, it is targeted at blue collar workers, but in the West it was targeted at a completely different market, which is why people in the West pay so much for it.

[sharinglungs]

It’s also why when something is on sale they also show you the regular price. It gives you a frame of reference so you feel like you’re getting a deal. I feel like if they just had the sale price people would second guess whether that’s a good price but if you see it’s 50% off and oh I save so much money you don’t second guess it especially if the sale is only for that week.

[eastafrica]

I used to buy takeaway meals from restaurants and got it delivered. Now for slightly cheaper, I have a cook that shops and cook for me each day far healthier and more tastier meals.

[ohhellnokamon]

Nespresso is a matter of convenience most than anything else. Its ultra fast and zero cleaning. It also taste way better than instant coffee.

But yeah, I totally understand his point. It is a matter of perspective. Pricing is more often than not subjective hence luxury brands.

[heroicrockstar]

I refill my pods, like I brought my second hand car 😂

[fearnpol]

I’ve never once felt guilty buying expensive tea over cheap tea, I just make sure the tea is good and cheap tea never is.