Weekend Read: Does Steve Jobs Hate Poor People?Authored by Scott Goldberg on March 30, 2007 - 3:59pm.
Here’s a lesson from The Steve Jobs School of Marketing: You need to get rich people to buy your stuff if you want to sell a lot shizznit. What’s with this dude and expensive gear? Well the answer’s pretty easy: You can’t claim something’s new and cool if it doesn’t cost a shit load, correct?Not entirely. Take the Wii. That’s certainly new and cool, and a lot cheaper than the PS3 and Xbox 360. Some would argue the Wii’s a novelty, though. It’s certainly original, but the capacity for dynamic looking games isn’t there. Basically it’s the Mini Cooper of gaming consoles. Apple, on the other hand, isn’t just in the business of originality; it’s in the business of really luxurious originality. And for that, you can’t sell it cheap. Look at Apple’s last four major product launches: The iPod, the Mac desktops/laptops, AppleTV, and the forthcoming iPhone. All of them are pricey; all of them have a lot of hype. But Jobs knows the balancing act: You need to make a product expensive enough for people to discuss it, but not too expensive to turn them off. Large prices should be an advantage, in fact. People should coo at the thought of a $500 phone smaller than an Eskimo Pie in their hand, yet they should question whether they can have it. You don’t start the “It” club in New York by letting everyone in the door and hosting post-work Happy Hours, in other words. You keep the numbers inside small and let people wait. Lines = Desirability. The line can’t be made of Average Joes, however. You need rich and famous Average Joes…people as equally willing to walk a flight of stairs as they are to buy a $200 headband. Granted that’s backfired on a company now and then…a certain game console producer named Sony, no less, whose executives appear to have attended The Steve Jobs School of Marketing, but failed to graduate. The PS3 was original, it was cool, it was luxurious, it was pricey, and it was difficult to get. So wha happen? It had no juice, no games. The software sucked. Steve Jobs would eat his own ears if he knew a disciple was planning a product launch with no juice. See Jobs isn’t just about price and originality and sizzle. He’s about delivery. He knows rich people are willing to pay high prices, but only if they’ll get follow-through. Whether it’s a hotel, a car, or a latte, they’ll pay the price if the shit’s good. In fact they’ll buy something they don’t even need, like a designer scarf for their poodle, if they know there’s good juice. Jobs has turned Apple into a follow-through machine. That’s why it’s on every analyst’s must-own list: You can rely on it to set the bar higher for whatever category they’re entering. And for that, yes, you can charge a pretty penny. So maybe Steve Jobs doesn’t hate poor people, but he sure doesn’t care about selling them his stuff either. Trends aren’t built that way. Scott Goldberg
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Comments
I like Mac's But DAM the price ?!
That's one school of
You're confusing value with
Apple's products are priced competitively
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