For many services, we price them on a curve.
After all the seat on the low cost airline was cramped, however that’s okay as a result of it was low cost.
After all this Camry doesn’t look or experience like a Porsche, don’t be silly…
However, the alternative is true within the excessive finish. When luxurious items are in comparison with luxurious items, the narrative is, “this one have to be higher, in absolute and relative phrases, exactly as a result of it’s costlier.”
And so hiring McKinsey prices 10x greater than hiring a former McKinsey marketing consultant. And so it’s price extra.
And so $150,000 elephant-sized stereo audio system (sure, they exist) are much better than $5,000 audio system (can’t you see?)
This goes past the usual understanding of a Veblen good. As a result of along with being costlier, these super-luxury items are much less efficient, more durable to make use of and customarily a ache within the neck. That’s a part of their enchantment.
(And sure, the identical is true for company luxurious items, like software program and IT consulting…)
Value accordingly. And take heed to the critiques with a cautious skepticism.
