Taxes for the rich: Many countries impose more taxes on the rich, and companies also impose additional fees on the rich in a certain way to earn extra money from the rich. Jeffrey Moore’s marketing theory says that when any product first enters the market, it is inevitable that it is only for a few people. Why do these few people pay for these products with low performance and high price?
Example 1: The car is a toy for the rich
When the car first appeared, it was built by hand, and it looked like a three-wheeled carriage without horses, but the driving force of the car was the engine built into the carriage. It takes two or three years from when you order a car to finally get it. This kind of car does not look much different from a horse-drawn carriage. The maximum speed is only 15 miles, it is very bumpy, and it cannot be used in rain. What talent will buy it? The rich! Because it is a product that represents the future, fresh, and has the privilege of a few talents. The rich people just need to buy a car not to travel, but to show their wealth and fashion. Their consumption behavior is actually a kind of symbol consumption: As a new symbol, the car is a toy for the rich.
Example 2: Big Brother is the identity of "Big Brother"
Big Brother is the earliest wireless portable phone, like a big brick, it is heavy and inconvenient. The person who owns this kind of phone must hire a special Ma Tsai to hold the phone, and wherever he sits down, Ma Tsai immediately pokes the phone on the table to show the status of "Big Brother". In the beginning, the other party must have a big brother, you can call him, so there are very few people using this phone, and the frequency of use is very low. However, big brothers are willing to pay an expensive fee to consume this big brother as a symbol. When Big Brother entered the market, it was more than 30,000 yuan. More than 30,000 yuan can buy a house of about 40-50 square meters in the early 1990s. If you use cost-effective calculations, the big brother that was ugly in appearance and has low performance and the experience is completely unspeakable. If the big brother sells more than 30,000 yuan, our 5,000-dollar smartphone may be converted into 100 million yuan today. Multiple. And today we can buy such a product with 1,000 yuan. We should thank those rich people from the bottom of our hearts. Without the purchase of these big brothers, this phone market cannot start. The high price guarantees that the first generation products are profitable. Manufacturers continue to research and develop the market with the profits they earn, so that the performance of products continues to improve and prices continue to decrease. When more and more people use it, the price drops and the performance improves. Big brothers buy this product at such a high price, in fact, they are paying taxes for this product, that is, "rich tax".
Example 3: Fortunately, there are still some rich people in this world
In the traditional consumer field, there is also the problem of the rich tax. For example, first-class cabins also include taxes for the rich. For a person who does not have much money in hand, from A to B are all his demands. As for whether the seat is spacious, whether the meal is upscale, whether the flight attendant is beautiful, etc., it can be said that it is a bit of a minutiae. However, some people are willing to pay twice or even twice the price for this 1% performance. The extra money he paid was the rich tax. When Tesla first entered the market, very few people bought cars. Its first users are those in Silicon Valley who are very rich, advocating environmental protection, high technology, and are not sensitive to cost performance. It is precisely because these people have paid rich taxes for this product that has just come out that makes this product grow up step by step.
The poor tax refers to products that high-end consumers don’t care about, and specifically target low-end consumers, and only low-end consumers are interested and willing to buy. The price of these products is very low, but its profit margin is not low.
The "28th Law" of product performance and price:
When a product is used, the most commonly used functions account for 80%, and the infrequently used functions account for 20%; and in terms of cost structure, this is not the case. For example, the main function of a computer is to type and edit documents, and a very low configuration is sufficient. However, in terms of cost structure, those uncommon functions may require high configuration. In this case, if you remove the 20% of the features that are not commonly used, the price of the product will be reduced by more than half. Therefore, even in the era when computers are expensive, office computers priced below 2,000 yuan can be realized. This is actually because of the following: low-end destruction logic.
When playing cards, if you catch a 3, you will feel very frustrated; if you catch 2 3s, you will feel better; if you catch 3 3s, you will feel very good; if you catch 4 3s, you will feel good. A low-end component is not valuable, but if all the low-end components are put together, it will form a price bomb, and the price of an entire product will be much lower than the value of similar products. Strong competitiveness. Consumers buy products that he thinks are sufficient at a cheap price, and manufacturers get a good profit. This "low-end disruptive product", or "low-end disruptive product", is to make money by taxing the poor. When designing a business model, it is important to understand whether this product charges tax on the rich or poor on entering the market. If a product can neither collect taxes from the rich nor the poor, its future in the market is worrying.
Returning to the analysis of the wind river live-in bamboo and wood structure integrated house, it is very consistent with the business model of collecting the tax of the rich and the tax of the poor. The mid-to-high-end wooden houses and bamboo houses are products aimed at collecting the tax of the rich. The power of the rich is that even if the rich know the tax of the rich, they have to pay it and have to pay more than this social currency. Premium. The steel-wood-steel-bamboo structure with light steel keel as the structure is specifically aimed at collecting taxes for the poor. We regard building materials with good price ratio as a 3, more standardized design as a 3, and quick and comfortable as a 3. Seismic and fire prevention as a 3, although each 3 is very common, but the four 3 together form a bomb effect: super cost-effective. Although it only has 80% of the basic functions, it is enough for the majority of the people to live, so it just meets the conditions for collecting taxes for the poor.
In summary, for the positioning of Wind River residential products, since it can collect the tax of the rich and the tax of the poor, it is very feasible in the business model.
Run it! Wind River!