(triumphant music)
- And also a little bit of ego appeal as well.
So psychological trigger number four, ego appeal.
How many have heard of the Black Card?
- [Man] Yes.
- Yes, the Black Card. Makes no sense.
You pay more annual fee.
You just pay, it's ego appeal.
All it does,
whatever privilege they say, this and that,
concierge, all that service is all crap.
It's when you use the card, when you use the Black Card,
you get a reaction, from people. That's it.
It's an ego appeal, again.
Feelings. Affluent clients, they buy into them.
They buy into them.
By application only.
Can you just go to
call AMEX, and say "Hey, I wanna black card."
Can you do that?
No, you have to go through an application process.
Okay, application only, black card.
So, here's another black card from actually from Visa.
Which I wanna show it to you, because, their verbiage,
copy, that's done very well.
Black and gold, first of all, we can see,
but, read it out loud with me, okay?
"Welcome to Black Card."
- [Crowd] "Welcome to Black Card."
What does the next line say?
- "The world's most prestigious and versatile credit card.
"The world's most."
Exclusivity.
Now, I love the first paragraph, I'll read it for you.
"For those, who demand
"only the best of what life has to offer.
"The exclusive Visa Black Card is for you.
"The Black Card is not, just another piece of plastic."
Then what the hell it is?
Anyway.
"It's not just another piece of plastic,
"made with carbon, it's the ultimate buying tool."
It's a fucking credit card.
"It's the ultimate buying tool.
"The Black Card is not for everyone."
It tells you, on the page.
"In fact, it is available, to only 1% of the U.S. residents,
"to ensure the highest caliber of personal service,
"is provided to every card member."
You see the language?
Exclusive, not for everyone.
Affluent clients, clearly see that, "I want that.
"That's for me, not for everyone, that's for me."
That's actually their motto.
"It's not for everyone, it's for me."
It's very easy to sell to them, actually.
You just tell them,
"It's very exclusive, it's the only one."
"I want it."
Or, "It's not for everyone."
"I want it."
That's how they buy, okay.
And notice also the language, they don't even use the word
benefits.
"Black Card members enjoy this exclusive privilege."
Privilege. Very modest, very subtle difference, right?
Steven. Privilege. Limited membership,
all this, it's all crap.
Annual fee, apply now.
Apply now, not buy now. No, it's apply now.
Apply by phone. Well done. Very well done page.
Very well done page.
Ferrari was a very good example,
we'll just touch on it.
Ah, so Ferrari, this sort of model,
some models, you could walk up to the dealership and buy,
but most Ferrari, if you wanna buy a newer model,
most of the time, you have two year waiting lists,
but also, you have to be an existing Ferrari owner,
to buy some of these models.
Depends on how much, like how many Ferrari's do you need,
but depends on how many Ferrari's you already own,
determines how many more Ferrari's they will sell you.
That's how they do it.
"You want a newer model? Well, how many do you own?"
"Oh, I only own one."
"Well, but here's a customer that already own three."
How many have been to Hermes, in downtown?
Hermes. You know how they work?
You know how they work, right?
Come on, Jenny, you know. Come on, Jennie, come to the mic.
Come to the mic, my wife. Come on, Jennie.
Round of applause.
Again, it's all those psychological triggers, in place.
So, just Hermes, if I wanna go, can I just go into Hermes,
and say, I wanna buy whatever bag?
- Regular bag is okay, but if wanna get the most popular,
let's say a Kelly or Birkin. - Yeah, Birkin.
- You just say--
- How much are they, first off all, the bag?
- Starting, 10 thousand.
- 10 thousand, right.
- Cheapest, cheapest will be. - 10 thousand, cheapest
is 10 thousand, for as much as?
- Million? - Yeah okay.
- 'Cause they have diamonds.
- So, if I want to, imagine this,
I'm walking down the street,
and say, I walk into Hermes, and say,
"Hey, you know what, I've got 10 grand.
"I wanna buy bag." And they say?
"I wanna buy a Kelly, I wanna buy a Birkin." They say?
- [Jennie] Oh, there's a waiting list.
- [Dan] 10 grand, I wanna buy bag.
- Ah, there's a waiting list, for a year.
- For a year. Can you see? You wanna sell expensive stuff?
Delay the sale cycle.
The more expensive, make them wait.
Contrarian thinking, okay.
And then, they would say, they say,
"But what would it take? I've got money, I would pay more.
"Can I pay more and buy one?"
- [Jennie] They'll say, "Okay, there's a waiting list,
"I'll take your name.
"And maybe, you try a couple of times more, sometimes my--"
- Look, I wanna give them 10 grand,
"Well, you come back, try a couple of times more,
"then maybe, I'll sell to you."
- [Jennie] And they probably, after a few time times,
and then, firstly, I think you gotta purchase
certain amount first.
- Yes, okay. "So you wanna buy my bag? You gotta buy,"
Buy what? Some of the plates?
- Yeah, some like plate or like tea cup.
- [Dan] What is it, scarves, right?
- No, scarf doesn't count.
- [Dan] Scarf doesn't count, okay.
(crowd laughs)
- The scarf is popular.
- So basically,
they make the customer buy a whole bunch of crap, literally.
This is not what they're known for,
which is very high profit margin, by the way,
way over priced.
So spend a whole bunch of money,
so I can buy this fucking bag. You get it?
It's amazing. Okay, so now,
I've spent a whole bunch of money,
buying all this crap. Now what?
- Actually, they have a lot of Saffiano bags,
but they only bring two bags, out, and then,
they have like, you can pre make colors,
colors that so many you can choose from,
all the colors you can think,
they can make it, and all the leather you can think,
they can make it, but they only bring two out,
and say, "Either the red or white. I have no more stocking.
"If you don't want it,
"next customer just take it right away."
- [Dan] Yes.
- And then, you're like,
"Oh, red or white. I guess I'll take the red."
"Okay." Sell, it's done.
- [Dan] But if I say, I don't like the white,
I don't like red, can I get a black.
- No.
- [Dan] Don't you have a black?
- No.
- [Dan] I can pay more.
- No.
- What the hell? Can I buy more shit so I can buy 'em.
- [Jennie] You gotta wait.
- What if I spend another $10,000,
I buy all this crap, can I buy the bag please?
I need it.
- [Jenny] Let me think what I can do for you.
- Okay, and then, they go to the back,
and this and that, and finally,
so I wanna spend $10,000 with them,
they made me spend a lot more money, right.
Don't have to believe me, try it for yourself.
Walk in there, it's a very good experience.
It's truly a very, you wanna talk about the ultimate,
how they make it exclusive and take away selling,
I think they are masters, at that.
(audience laughs)
Absolutely masters.
So, round of applause for my wife.
It would be interesting, some of the Hermes,
next week, it's got a bunch of entrepreneurs going in,
all you guys, like thigh kickers, are not gonna buy shit,
right, asking a whole bunch of questions, right.
(audience laughs)
No, but it's true, it's educational,
it's very educational.
How they push you away, and you wanna give them money.
Say, "I wanna buy it." "Nope."
"10 thousand." "Nope."
"How about this?" "Nope."
Amazing, amazing.
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