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The Luxury Strategy

ChrisV

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It's more about social rank.

An LV is just a bag. Some of them are just a single colour, small leather bag, that likely cost about $50 in materials. The chief costs are in the marketing that "this item indicates high social status", by paying famous actresses & models to pose with the bag and mention the brand in their press appearances etc. The actual item is just a small piece of dead cow with some paint.

Same with watches. A simple $10 quartz Casio wrist watch is a far superior piece of technology to any Swiss mechanical watch. But the latter look special. You have to be explained to, using terms like "exquisite", and wankingly referring to the watch as a "time piece" (or a "fine time piece"), why the watch is good. When in fact it's inferior to the Casio, as you have to wind it everyday, and those "special handcrafted" wheels in it are far less accurate than quartz, and you can read a digital time much faster than an analogue one.

Again with DeBeers & diamonds. People are gullible. You can sell anything to them as "luxury" as long as your marketing budget is big enough. In Asia they eat birds nests because it's "luxury" FFS.

If you believe that, you hopelessly don’t understand luxury products.

Same with watches. A simple $10 quartz Casio wrist watch is a far superior piece of technology to any Swiss mechanical watch.

Please please please tell me you’re joking.

Luxury products are not just about social rank. If you think that a Hyundai and Mercedes are the same thing, you’re F*cking nuts.

Whenever I get out of a Hyundai I feel like greatful to still have my life in tact. I feel like I just got done riding the brain scrambler at the carnival.

People who haven’t been around refined luxury products for a long time just don’t understand this. It’s like trying to explain a Monet to someone who just doesn’t pay attention to art. “Dude it’s a picture of a bridge... I don’t see the big deal.”

A handmade $20,000 Patek Phileppe that’s designed to be passed down from generation to generation isn’t the same as a $12 Made in China Casio watch, and to imply so is F*cking crazy. Have you ever held a Patek
phileppe? I used to have one (was selling it) and the beauty is jaw dropping. This was the Patek I had:
16905866-B67F-45AE-9382-ED3817C10FD1.jpeg

If Patek Philepe ever released anything that looked like this....

d7Mx7Uc.jpg


The fact that a Louis Vuitton was “made from $50 worth the materials” is irrelevant. Imagine if I said “the Monet Lisa is junk.. it was made from only $20 worth the paint supplies.” The Bible was made from $2 worth the paper and ink. The Godfather trilogy DVD set was made from $.40 worth the plastic. If you were bleeding to death $2 worth the cloth would save your life. Everything about Entrepreneurship is about taking raw materials and making them into something that’s useful or beautiful for humans.

People don’t just buy luxury materials to be “better than” other people... and even if so, why does one product denote superiority while the other doesn’t.
 
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GoGetter24

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It’s like trying to explain a Monet to someone who just doesn’t pay attention to art.
This is precisely what I mean. The Monet is just a picture. The man who had the (tremendous) skill to paint that is long dead. Now it's a social rank commodity. It's rare (only I can have it, so I'm special), and you can talk down to other people that they don't understand the value. You can pretend to be more "cultured" etc, thereby purporting a higher social rank. It serves no other purpose.

A handmade $20,000 Patek Phileppe that’s designed to be passed down from generation to generation isn’t the same as a $12 Made in China Casio watch, and to imply so is f*cking crazy.
That's just bias though. There's no way in hell you're going to bend to the idea that they're equal value after you've paid $20k for one. That watch is unambiguously inferior in terms of timekeeping technology to the Casio: it just looks a lot prettier. It's entire value is in the marketing about "designed to be passed down" etc. The fact that it's handmade doesn't necessarily increase it's value: machines are better at precision engineering than people are. It's purely man jewelry for social rank buffing: "oh my watch was handcrafted by a team of monks in the Himalayas out of meteorite metals over the course of 15 years. It doesn't even have hands: you just know the time from it instinctively. And yours?", "just tells the time".

But all of this is academic. The point is, as we can see in your case, people want to buy these stories. And therefore there is money to be made from them. Lots of it. So please don't misinterpret this as being against luxury: I'd just rather be on the selling side than the buying.
 

ChrisV

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There was a time that I thought like you. Then one day after I bought a new iPod, I wanted a really great set of headphones to go with it, so i researched it, found a great pair that cost $70 which made me understand why people buy high-priced luxury items. Buying that $70 set of headphones set off a chain of events that made me understand the very subtle difference between $7 headphones and $70 headphones. And later $400 headphones. If yo think the only difference between these things are a ‘story’ you’re nuts.

And if you think people only buy this:

td0xh6c.png


as opposed to this:

6PWpfYg.png


....If you think they only buy the Mercedes Maybach instead of the Corolla because they want to feel ‘special’... you’re just wrong. The Maybach is objectively better. I think you’re mixing up the cart and the horse. A person who makes 20,000,000/yr is higher on the social rank than someone making 23,000/yr, and the person with the 8 figure salary can afford the Maybach as opposed to the Corolla, therefore the car is the CAUSE of the rank rather than the rank being caused by the car.



Yes, the Patek is more beautiful than the Casio. Again, luxury products aren’t just some clever marketing bullshit. They’re designed to invoke pleasure at every turn. Beauty is one trick they use, but luxury products are more pleasurable to all the senses. Headphones sound better, blankets feel better, food tastes better. It’s not just ‘social rank.’ Most people don’t even know what Sennheisers are. If I wanted social status I’d just get Beats, a Rolex and Levi jeans. But the shit I buy (personally) people don’t even know what these brands are. Adriano Goldschmied jeans. True Religion hoodie. Most people have no F*cking clue what any of these brands are. But I look F*cking good when I go out ;D
 
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biophase

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If you believe that, you hopelessly don’t understand luxury products.



Please please please tell me you’re joking.

Luxury products are not just about social rank. If you think that a Hyundai and Mercedes are the same thing, you’re f*cking nuts.

Whenever I get out of a Hyundai I feel like greatful to still have my life in tact. I feel like I just got done riding the brain scrambler at the carnival.

People who haven’t been around refined luxury products for a long time just don’t understand this. It’s like trying to explain a Monet to someone who just doesn’t pay attention to art. “Dude it’s a picture of a bridge... I don’t see the big deal.”

A handmade $20,000 Patek Phileppe that’s designed to be passed down from generation to generation isn’t the same as a $12 Made in China Casio watch, and to imply so is f*cking crazy. Have you ever held a Patek
phileppe? I used to have one (was selling it) and the beauty is jaw dropping. This was the Patek I had:
View attachment 21009

If Patek Philepe ever released anything that looked like this....

d7Mx7Uc.jpg


The fact that a Louis Vuitton was “made from $50 worth the materials” is irrelevant. Imagine if I said “the Monet Lisa is junk.. it was made from only $20 worth the paint supplies.” The Bible was made from $2 worth the paper and ink. The Godfather trilogy DVD set was made from $.40 worth the plastic. If you were bleeding to death $2 worth the cloth would save your life. Everything about Entrepreneurship is about taking raw materials and making them into something that’s useful or beautiful for humans.

People don’t just buy luxury materials to be “better than” other people... and even if so, why does one product denote superiority while the other doesn’t.

Just wanted to jump in on one comment. Have you been in a new Hyundai vs a Mercedes lately? I’d say that they are about the same in quality right now. :)
 

biophase

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This is precisely what I mean. The Monet is just a picture. The man who had the (tremendous) skill to paint that is long dead. Now it's a social rank commodity. It's rare (only I can have it, so I'm special), and you can talk down to other people that they don't understand the value. You can pretend to be more "cultured" etc, thereby purporting a higher social rank. It serves no other purpose.


That's just bias though. There's no way in hell you're going to bend to the idea that they're equal value after you've paid $20k for one. That watch is unambiguously inferior in terms of timekeeping technology to the Casio: it just looks a lot prettier. It's entire value is in the marketing about "designed to be passed down" etc. The fact that it's handmade doesn't necessarily increase it's value: machines are better at precision engineering than people are. It's purely man jewelry for social rank buffing: "oh my watch was handcrafted by a team of monks in the Himalayas out of meteorite metals over the course of 15 years. It doesn't even have hands: you just know the time from it instinctively. And yours?", "just tells the time".

But all of this is academic. The point is, as we can see in your case, people want to buy these stories. And therefore there is money to be made from them. Lots of it. So please don't misinterpret this as being against luxury: I'd just rather be on the selling side than the buying.

Interesting point about the watch. Imagine you take the Casio back in time, let’s say to 1900 and then compare that to the watches of that time. I’d bet the citizens would marvel at the casio and think that it was worth way more than their current watches.

Now imagine that you brought back a Casio calculator watch! What would that be worth? It can do math and tell time and can light up!

This brings back the functionality vs quality issue. The casios functionality would have been unbelievable in 1900 and people would surely think it should cost more.

But we are talking craftsmanship vs functionality now. Our value is based on difficulty of construction vs what the object can actually do.
 

biophase

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There was a time that I thought like you. Then one day after I bought a new iPod, I wanted a really great set of headphones to go with it, so i researched it, found a great pair that cost $70 which made me understand why people buy high-priced luxury items. Buying that $70 set of headphones set off a chain of events that made me understand the very subtle difference between $7 headphones and $70 headphones. And later $400 headphones. If yo think the only difference between these things are a ‘story’ you’re nuts.

And if you think people only buy this:

td0xh6c.png


as opposed to this:

6PWpfYg.png


....If you think they only buy the Mercedes Maybach instead of the Corolla because they want to feel ‘special’... you’re just wrong. The Maybach is objectively better. I think you’re mixing up the cart and the horse. A person who makes 20,000,000/yr is higher on the social rank than someone making 23,000/yr, and the person with the 8 figure salary can afford the Maybach as opposed to the Corolla, therefore the car is the CAUSE of the rank rather than the rank being caused by the car.



Yes, the Patek is more beautiful than the Casio. Again, luxury products aren’t just some clever marketing bullshit. They’re designed to invoke pleasure at every turn. Beauty is one trick they use, but luxury products are more pleasurable to all the senses. Headphones sound better, blankets feel better, food tastes better. It’s not just ‘social rank.’ Most people don’t even know what Sennheisers are. If I wanted social status I’d just get Beats, a Rolex and Levi jeans. But the sh*t I buy (personally) people don’t even know what these brands are. Adriano Goldschmied jeans. True Religion hoodie. Most people have no f*cking clue what any of these brands are. But I look f*cking good when I go out ;D

I don’t disagree that luxury products are usually better in quality but the luxury part is what they charged you for, not it’s proportional value.

In your example your $70 pair of headphones probably should cost $30 but they charged you a $45 luxury premium.

That $7 headphone may have cost $2 to make and your $70 headphone maybe cost $5 to make. But instead of charging $30, they upcharged you and were able to do it because of brand recognition.

There’s probably another brand selling the exact same headphone for $25 somewhere.
 
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Walter Hay

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I don’t disagree that luxury products are usually better in quality but the luxury part is what they charged you for, not it’s proportional value.

In your example your $70 pair of headphones probably should cost $30 but they charged you a $45 luxury premium.

That $7 headphone may have cost $2 to make and your $70 headphone maybe cost $5 to make. But instead of charging $30, they upcharged you and were able to do it because of brand recognition.

There’s probably another brand selling the exact same headphone for $25 somewhere.
As I have posted in other threads from time to time: I have been in many factories where side by side production is under way using the same materials, the same design, the same level of human handling, the same manufacturing equipment and the same quality control.

BUT.... On one production line they attached a store brand label, or a generic label, or no label at all.

On the other production line they attached a big name expensive brand label, and those who must have the best, for whatever reason, will pay as much as 5 to 10 or even 20 times the price of the one with the "ordinary" label.

Everything was the same except for the label, but the buyers won't even look at the identical product without the label that is of critical importance to them.

Self delusion? Or have they been subtly brainwashed to not just look up to the big brand, but to look down on the lower cost exact equivalent?

I am not talking about knockoffs. I am talking about the real deal differently labeled.

I have no illusions that in a good many cases there are differences in quality, and I enjoy using good quality. Since I entered the fastlane many years ago I have only owned and driven European cars.

Not the ridiculously expensive ones that I could afford, but I chose to buy real value instead, and enjoy the luxury without the envy bonus that is mostly exceedingly poor value unless evoking envy is something you need (or crave). Then I suppose, you will pay whatever clever marketers can extort from you.

Walter
 

GoGetter24

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This brings back the functionality vs quality issue.
This is what I like about the Apple brand: both are connected. They market it as a fashion item, but it's backed up by actually being a leading piece of phone tech.

So I guess, when it comes to business: why not have both? If you can make a product that's both "luxury" and highly functional, then you appeal to anyone who has money.

It's just strange when exclusivity is without justification. It's one thing to have an exclusive watch based on a fundamental: like it's 22 carat gold. But exclusive because some Swiss guy made it by hand like it's the 1910s? That's just waste. If it's because he's genuinely customized it to do something specific that you wanted, a customization a machine couldn't do, that is impressive. Otherwise it's just pretentious and wasteful.

Same with an LV. If the bag is made out of some animal you've never heard of, that lives in the bottom of the Mariana trench, and it cost $300k just for one hunting expedition, and that's partly why it's so expensive, OK, that's incredible. But when it's just because it's worn by a celebrity, who was artificially "created" by people like Harvey Weinstein, people have a duty to call that crap out.
 

biophase

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I have a friend that runs a high end boutique. She sells her own brand and one day she gave me some, I said let me pay for it, it’s $120. She said there’s $2 worth of product in there, don’t worry about it. I said why don’t you price it at $50 then. She said my clients won’t buy anything priced under $100.

She also said that people are selling the same thing on amazon for $15.
 
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smark

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Guess I'm a bit late to the party. Been really busy the past few days.

Hublot seems like the Audi of the watch world... "functional luxury" I guess.
And don't forget about Tag Heuer. I get the same "functional luxury" vibe from them that I get from Hublot.

how would one go about pricing such a thing? And how would you make a valid market entry within the space?
In terms of pricing, it's all about finding that range (which can be quite wide) where your good/service is perceived luxurious, but can still attain some decent sales volume. Obviously, finding that range first and making sure that you're towards the high end of it is another story and very specific to what you're selling.

As far as making a market entry goes, give me guys a year and I'll let you know what happens hahah.

LV / Moet etc could be considered "luxury" because their quality is timeless.
Precisely. Luxury = Timeless.
To me, a good with absolutely NO functional value (besides its beauty) is more closely related with art than luxury. The way I see it (and the way the book distinguishes between the two), is that a luxury good must ALWAYS have some functional value, no matter how small or insignificant.

A Panthere de Cartier ring for example certainly has very little use value, but it still has some function as a personal accessory. On the other end of the spectrum, "premium" is "pay more, to get more" (like @rpeck90 had mentioned). The best "premium" example I can give is Lexus - great cars, yet quite unoriginal, lacking roots/culture/heritage, employ mass advertising like mass-consumer good brands, focus on the price instead of the product and its aura, not hedonistic enough, largely depreciating value, etc...

the person with the 8 figure salary can afford the Maybach as opposed to the Corolla, therefore the car is the CAUSE of the rank rather than the rank being caused by the car.
Indeed. Luxury's main social purpose is to signify the socioeconomic inequality that exists in the world's capitalist societies. If you were a multi-millionaire, would you rather go eat shitty food at a Jack in the Box in a high-crime area, OR in a Michelin star restaurant in Beverly Hills?

luxury products are more pleasurable to all the senses
You sir, have an excellent understanding of luxury. It's like you've read the book already hahaha.

I don’t disagree that luxury products are usually better in quality but the luxury part is what they charged you for, not it’s proportional value.
True. I always tell people that if you want a good car, get a Lexus. But if you want a "real car," something more like an Aston Martin or Pagani would be in order. Why?

Though there are some tangible differences such as more aesthetically appealing design, the partial use of the human hand in production, the use of better materials, more comfortable interior, etc. the difference in price can largely be attributed to a set of intangibles which elevate the product and the brand. Does that mean that luxury is "just marketing" though? Quite the contrary. That's like like saying that French culture/heritage is "just history" because it is based on events and traditions of the past which don't matter as much anymore. Not a great example, but you get what I mean.

They market it as a fashion item, but it's backed up by actually being a leading piece of phone tech.
I would disagree. Though Apple IS a luxury brand, they source their production in other counties which employ debatable working conditions (they have been criticized for this in the past) and make use of technology that is no different than any of their competitors. But due to the fact that they have full control of the software and hardware of their products (due to their products being closed systems) they can fine-tune them and customize their functionalities far more easily than any other computer & phone company out there.

I do congratulate them on everything else though. Their design, marketing, management, beliefs and even the actual name (Apple) are exactly why their Market Capitalization is over 1 TRILLION USD at the moment.

Same with an LV.
Louis Vuitton handbags are not well-known because celebrities wear them. Celebrities wear them BECAUSE they are well-known. If you think a multi-billion dollar luxury brand needs a celebrity to "elevate" their products and increase sales, then you're lying to yourself. They mostly use them for cultural reasons to appeal to a certain geographical region. This is in huge contrast to how a fashion brand like Guess uses celebrities, where they expect the individual to increase the prestige of the brand.

Louis Vuitton himself amassed quite a reputation with his made-to-order trunks more than 150 years ago, which were used by wealthy sea travelers to protect their belongings while at sea. The LV brand pays tribute to this piece of heritage by providing the modern equivalent to its clients - city handbags - (among other products, some of which are not luxury) while its classic trunks are still in demand in the second-hand market. If this is not the personification of luxury, then I don't know what is.

She also said that people are selling the same thing on amazon for $15.
Welcome to the lucrative (and largely unprofitable) world of high fashion. The only brand (which coincidentally also happens to be a luxury brand) that has managed to remain highly respectable and profitable over the years while basing its identity on fashion, is Chanel. All other brands that primarily sell expensive "high fashion" pieces that lack intrinsic beauty and any sense of timelessness are in deep trouble, and make use of low-priced accessories and licenses to remain in business. Only the likes of cheap fashion brands like Forever21 (which base their profits on volume and turnover) are successful. Your friend probably enjoys high to moderate profitability at the moment (depending on her sales volume) but as soon as that fashion style flees away, she'll have to find the next "big fashion trend" and order pieces that look a certain way.

Fashion, has nothing to do with luxury or premium. Fashionable products are just that, fashionable. They are not timeless, and will probably look terrible from the point of view of someone a few years (or months) from now. But some of Mademoiselle Chanel's iconic styles, or the antique Aston Martin shown below, will never go out of style no matter how many years pass; and actually increase in value in the long-term.

db5-1.jpg
 

Walter Hay

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I have owned many cars in my lifetime and have rented many different makes and models of cars in 19 countries during my business travels.

Without a doubt, the most uncomfortable car I have ever driven was a Jaguar XK120. Highly acclaimed mainly for its styling when released in the 1950s, I found that apart from its high performance, it was horrible to drive, and the interior apart from the leather was basic. The instrument panel was more visible to the passenger than to the driver.

True it had walnut paneling, but that appeared to be attached as an afterthought. You can still buy a good specimen for around $250,000. I guess that means that it fits the definition of luxury.

On the contrary, the Porsche 356 from the same era, was not only trimmed beautifully, with very comfortable contoured leather seats and with instruments straight in front and visible through the see-through steering wheel. Performance was staggering, with the exciting feel of high G Forces pushing me back into the leather.

Not as pretty as the XK120, but don't say that to a Porsche aficionado. Good specimens can be obtained for a paltry $50,000. Must be because it's not a luxury item.

Walter
 

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That $7 headphone may have cost $2 to make and your $70 headphone maybe cost $5 to make. But instead of charging $30, they upcharged you and were able to do it because of brand recognition.

When you say ‘make’ what do you mean... raw materials used to build it? Or do you add in shipping costs, R&D costs of making headphones that sound great, paying the top designers in the industry and other company overhead

See, that’s the issues when people say ‘X product only cost $Y to make’... the actual manufacturing cost is only a tiny tiny fraction of the entire cost to make an item.
 
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When you say ‘make’ what do you mean... raw materials used to build it? Or do you add in shipping costs, R&D costs of making headphones that sound great, paying the top designers in the industry and other company overhead

See, that’s the issues when people say ‘X product only cost $Y to make’... the actual manufacturing cost is only a tiny tiny fraction of the entire cost to make an item.

I understand that there are R&D costs associated with making a product and that those need to be absorbed in the sale price. So let’s say for the sake of ease that my price included the year of R&D and all the improved materials.

I guess my point is that luxury is the mark up beyond that difference. Let’s say that most companies mark up retail prices 4x. Luxury companies may mark up 10x.

That’s what you are paying for, the amount marked up beyond its improved value.

I can make a product for $3 and sell for $10 on Amazon. I can make a slightly better version for $3.25 and attach a brand name to it and sell for $20. Where that $.25 improvement should have only made the retail price go up to $11.
 

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Just wanted to jump in on one comment. Have you been in a new Hyundai vs a Mercedes lately? I’d say that they are about the same in quality right now. :)

Second this,

I've worked with cars before so personally I've been in Porsche's,Mercedes and all the fancy stuff.

One day at work we had this Bentley come in and I just had to check this thing out, a 6 figure car lets see the fuss about this baby, after sitting inside and going for a ride I was so disappointment, this piece of *** is 200k/300k+?

I wish I was kidding but I got in a newer Honda civic (touring package with leather etc) It was actually alot nicer, to be fair it was a little bit newer but the point stands.

Tons of Lambos/Ferraris compared to slightly newer *Hyundai's* yes **** Hyundais are actually alot nicer than some exotics. Believe me, I absolutely love F-cars/Lambos and it is my dream to own one but I must say that for the money you *CAN* get ''nicer'' cars for cheaper. Exotics are all about branding.

Especially Ferraris, they are known to be constantly broken down with battery issues, engine issues, random fires etc. (Check out ferrarichat.com)

If you think Mercedes is higher quality than Hyundai you obviously have not seen the newer models released as bio was saying.
 

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You'd be surprised. Once had a chat with a luxury company who sold dildos and massagers plated in 24k gold. Their most expensive variation goes for $12,200 today.

If you're strapped for money, they luckily offer the same product plated in stainless steel for just $6,000.

"You can’t put a price on pleasure"

Anyways, don't mean to go off topic. Interesting contributions from all of you, thanks.
Look, I don't mind being "Strapped for money" but I don't think it's Fastlane:devil:
 
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ChrisV

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I’ve seen the newer Hyundais. They remind me of the kid you went to High School with who dressed like the cool kids, used the slang the cool kids used.. but no matter how hard he tried..... just wasn’t a cool kid. We used to call those kids ‘posers’ lol

View: https://www.youtube.com/watch?v=AltMeuPkWRs
 

ChrisV

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Second this,

I've worked with cars before so personally I've been in Porsche's,Mercedes and all the fancy stuff.

One day at work we had this Bentley come in and I just had to check this thing out, a 6 figure car lets see the fuss about this baby, after sitting inside and going for a ride I was so disappointment, this piece of *** is 200k/300k+?


Tons of Lambos/Ferraris compared to slightly newer *Hyundai's* yes **** Hyundais are actually alot nicer than some exotics. Believe me, I absolutely love F-cars/Lambos and it is my dream to own one but I must say that for the money you *CAN* get ''nicer'' cars for cheaper. Exotics are all about branding.

Especially Ferraris, they are known to be constantly broken down with battery issues, engine issues, random fires etc. (Check out ferrarichat.com)

Yes.... a car that was literally build by a team of F1 engineers for the world’s top race team is simply just ‘good branding.’

fpg4nUs.jpg

(Note: Not a Honda Civic.)

Sh*t, we can do this in our basements. We’ll just get a ‘17 Corolla, slap a fancy black and gold badge on it ... maybe a turbo and market it as the world’s greatest supercar. And then make a few advertisements so that we can brainwash these idiots into believing they’re getting a superior product.

It’s so easy a caveman can do it!

Like @smark pointed out, taking a fancy logo, adding some leather etc is essentially what Lexus did. And no one who’s a fan/purchaser/connoisseur of Luxury products (guys like smark and I,) actually consider Lexus a luxury brand. They’re a wannabe lux brand. Most Lexus cars have the same chassis and parts as Toyota. THAT’S what happens when you think “oh lux products are all branding... all we gotta do is slap on a fancy logo, replace the cloth with leather, take some pictures of people eating caviar in it and boom F*ck Mercedes.” Lexus is a disaster. They barely sell any cars anymore.

But Ferraris?

You can get nicer cars for cheaper? Where? I used to think that when I was a kid. “Dude if I were a millionaire i would never buy a Ferrari! You get the same horsepower and 0-60 time in a Corvette!” Except now that I’m older I think Corvettes are tacky. There’s no elegance, they’re vulgar. Chevrolet doesn’t understand the concept of refinement.

But talking about Ferraris.... Dude, the engineering that goes into a F*cking Ferrari is so far advanced it will make you shit. They’re put through the worlds most advanced wind tunnels (again the same ones they use for F1 cars,) tested for lap times under the most grueling conditions, have space age technology in their suspensions. Those little hoodscoops that everyone thinks is to make it look cool? It’s actually designed to literally push cold air into the engine like a funnel.

An Engineer from Honda could never get a job at Ferrari. An Engineer from Ferrari could definitely get a job at Honda though. Although I don’t that engineer would accept that almost inevitable pay-cut.

But I guess all the rigorous testing, engineering all part of the ‘branding.’ Even though Ferrari does almost no advertising whatsoever.

But I may be wasting my breath. Some people simply son’t understand refinement. They’re just as happy with Burger King as they are with a slow-cooked ribeye from a great steakhouse.

If you think Mercedes is higher quality than Hyundai you obviously have not seen the newer models released as bio was saying.
I own a Mercedes and this thing is literally a marvel. Every detail about it is so smart. They do obvious things that makes you think “DUH! Why doesn’t every car manufacturer do this??” It’s such a good, pretty girl

Das my baby:

IMG_0215.JPG

I wish I was kidding but I got in a newer Honda civic (touring package with leather etc) It was actually alot nicer, to be fair it was a little bit newer but the point stands.

It happens. I’ve owned BMWs, Mercedes, Mustangs, and you know what put the all to shame? The newer Ford vehicles. Anything from 2010+. The interiors of those cars were F*cking amazing and a technological wonderland. There are some great cars among the ‘regular’ brands..... but the percentage of nice cars is a lot higher among the higher end brands.
 

rollerskates

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small leather bag, that likely cost about $50 in materials.

Maybe, maybe not, but that isn't what really makes a bag good or not. I've made bags and good hardware and leather can get quite costly. You can't just buy the parts and make the bag. For one thing, LV's signature patterned canvases don't come cheaply, as no custom printed materials do. The leather too, you can't just buy a piece big enough for a bag. A premium leather like LV or Hermes would use are bought by the hide and are REALLY expensive. Even a small finished alligator hide can run hundreds of dollars. It's nearly impossible to find one bag's worth or premium leather anywhere. And the hardware--LV uses solid brass hardware, and that's not cheap. And there's the premium thread, and last of all, there is the meticulous hand work that goes into it all. You can't just sew a bag right off the bat, either, Hermes craftsmen start as apprentices when they are 15 or 16. I obviously have less experience, but it does take years to be able to make a good bag. I've watched every available video of Hermes and LV craftsmen at work, but it also takes practice and more practice. Overall, it's a combination of materials and craftsmanship that make it a good bag. Legacy, too, makes it a luxury product.

Anyway, I'm not making bags anymore, but I definitely know what all goes into them, I've designed and made a lot. It's SO NOT fast lane, though.
 
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sparechange

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c300's civics and corollas are the same thing. I have been in all of them, my fat hairy a$$ was in a c63s AMG and for 6 digits I'd rather get a Civic for like 10-15k. Was to uncomfortable and the inside looks super cheap.

Huracans tho? Whole nother level.... I could justify the $400k+ tag (was just at the dealer a couple of weeks ago)

The two cars in my pic are almost a mill, inside the cars are super plain. Rolls Royce is the biggest scam of a car, there is literally nothing special about these cars. Again I would argue a little Civic for a fraction of the price is much nicer.
 

Niptuck MD

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true luxury goods require little to no marketing. the purchasers/acquirers do all the work for you.
 

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There's no way in hell you're going to bend to the idea that they're equal value after you've paid $20k for one.
And you’re absolutely right... they’re not equal in Value. You couldn’t pay me to wear that dollar store looking Casio.

The Patek I posted sold for around $4000 on eBay. Honestly, imo, you’re getting more for your money with a watch like that.


m3ptxXp.jpg


Like... the more I look at this the more I want to gouge my eyes out. The interface is horrible, it’s cluttered with junk... there’s all sorts of unnecessary bullshit going on for no reason. Looking at it’s interface reminds me of an episode of Hoarders. Why on Gods earth would I ever need any of this shit.

Looking at this shit is F*cking up my zen. No lie.

Now these on the other hand?

37905448540000.jpg

090116-Moderna_800x800.jpg

c4c2dbfc4c1c0d2f1340cce19ccb2835_original.png

Ahhhhhh...Zen replenished. Look at these. It’s like taking a bath in a spring water stream in the the Himalayan mountains with buddhists monks.

"There's no way in hell you're going to bend to the idea that they're equal value after you've paid $20k for one. “

You’re damn right... The Patek is of so much Higher value. Dude, you couldn’t pay me to wear one of these Casio watches. Looking at this picture for the 60+ seconds i have been I ac tally hand a slight headache from all the cluttered confusion.

Casio Watch:

a-teenagers-messy-bedroom-with-clothes-books-and-possessions-abandoned-E7P5K9.jpg

Patek/Movado/etc:

zen-room-ideas-collect-this-idea-garden.jpg

But regardless Someone who’s buying a 20K watch has a different lifestyle than than someone buying a $30 Casio. He probably made that 20K in a week. People of that income just buy the things they like. I mean with this thinking, F*ck it.. why even buy the casio? I can get this for $1 at the dollar store:

JELWCCS-l.jpg

There's no way you're going to bend to the idea that they're equal value after you've paid $30-$50 on a Casio when you can get THIS bad boy for one measly little dollar.

See, what I notice here is a lot of people are operating under an assumption, and that assumption is that ‘physical beauty is worth nothing,’ ... or that ‘since physical beauty doesn’t enhance the utility of the product it’s just excess,’ which is nonsense. It’s totally fair to ask more for a product that looks better. Why? You have to hire better designers to make those products, and those designers cost more. And looks just matter.. plain and simple.
 
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Kak

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Like @smark pointed out, taking a fancy logo, adding some leather etc is essentially what Lexus did. And no one who’s a fan/purchaser/connoisseur of Luxury products (guys like smark and I,) actually consider Lexus a luxury brand. They’re a wannabe lux brand. Most Lexus cars have the same chassis and parts as Toyota.

I agree with a lot of what you are saying, but this is bullshit... I’m a big fan of Lexus. There are plenty of lexuses that don’t have a Toyota counterpart or have a damn good reason.

The IS, GS have no Toyota counterpart.

The LS, the real Lexus, the car that they aimed at the S Class, is indestructible and one of the most gorgeous interiors of any car in its class. BMW and Audi are riddled with useless tech for the sake of tech and they are pieces of shit. Lexus covers it in the best leather and wood I have ever seen and I have ridden in several Bentley’s. Its interior is better than the S Class. Don’t believe me? Go test drive one with the executive package and the Kierko glass or the herringbone wood and get back to us. There is no Toyota counterpart.

The LC is sick. Probably the only sports car I would consider buying. Why? Because it isn’t worthless. I can drive it daily. I can carry golf clubs or groceries and once again... try to match that interior and fit/finish with an Aston or Ferrari. Not going to happen. No Toyota counterpart.

The $85k+ LX needs space efficiency inside, but when you realize that it is a $85k land cruiser underneath... it has an excuse. The Land Cruiser is an excellent underpinning to compete with Range Rover.

The $55k+ GX is a $55k Land Cruiser Prado underneath. Not a 4 runner. Have you ever been to a 3rd world country? These trucks are beaten on for hundreds of thousand of miles on the worlds worst “roads”. Prados are what a lot of the wealthy drive in these countries. Yet another excellent underpinning to compete with the Range Rover Sport.

The ES and the crossovers are the only Lexuses with no excuse. They don’t completely suck, but they aren’t inspiring either. All mainstream luxury brands make somewhat lame cars for people who want the badge. If you think I’m FOS, defend the CLA Mercedes or the Audi A3.
 

MTEE1985

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I see both sides of the equation where automobiles are concerned. Having sold Mercedes for about a year I can tell you that the money they spend on materials and processes is far more than the MSRP of any Hyundai.

Two simple examples, most cars spend a few hours in the paint shop during production, a Mercedes spends a few days. We had a sales manager who weighed about 275 who used to open a door and literally stand on the arm rest and rock the car...if you did that in just about any other car you’d have a door missing.

It all comes down to personal opinion and relative value does it not? To the person who views a vehicle as a means of transportation then yes, all vehicles are worth the same. Just like watches, headphones, (insert anything and everything).

I love cars and feel that my children are safer in a Mercedes, Lexus or Volvo than in a Kia so they hold higher value. While I totally respect @ChrisV or any music aficionados choice in headphones, my personal value in them is delivering basic quality music and words to my ears so I wouldn’t spend as much.

P.s. having just read the post from @Kak I think he is spot on about the Lexus’ (Lexi?) he mentions as well as the miserable attempt by MB at a mass market appeal in the CLA.
 

ChrisV

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I agree with a lot of what you are saying, but this is bullshit... I’m a big fan of Lexus. There are plenty of lexuses that don’t have a Toyota counterpart or have a damn good reason.

The IS, GS have no Toyota counterpart.

The LS, the real Lexus, the car that they aimed at the S Class, is indestructible and one of the most gorgeous interiors of any car in its class. BMW and Audi are riddled with useless tech for the sake of tech and they are pieces of sh*t. Lexus covers it in the best leather and wood I have ever seen and I have ridden in several Bentley’s. Its interior is better than the S Class. Don’t believe me? Go test drive one with the executive package and the Kierko glass or the herringbone wood and get back to us. There is no Toyota counterpart.

The LC is sick. Probably the only sports car I would consider buying. Why? Because it isn’t worthless. I can drive it daily. I can carry golf clubs or groceries and once again... try to match that interior and fit/finish with an Aston or Ferrari. Not going to happen. No Toyota counterpart.

The $85k+ LX needs space efficiency inside, but when you realize that it is a $85k land cruiser underneath... it has an excuse. The Land Cruiser is an excellent underpinning to compete with Range Rover.

The $55k+ GX is a $55k Land Cruiser Prado underneath. Not a 4 runner. Have you ever been to a 3rd world country? These trucks are beaten on for hundreds of thousand of miles on the worlds worst “roads”. Prados are what a lot of the wealthy drive in these countries. Yet another excellent underpinning to compete with the Range Rover Sport.

The ES and the crossovers are the only Lexuses with no excuse. They don’t completely suck, but they aren’t inspiring either. All mainstream luxury brands make somewhat lame cars for people who want the badge. If you think I’m FOS, defend the CLA Mercedes or the Audi A3.

Okay okay okay.. You’re really right… Newer Lexuses are pretty sick. I’m mostly talking about the old days where they were just rebadged Corolla/Camrys. They really have stepped their game up to make cars with probably the best balance of luxury and price. Combine that with Japanese efficiency and reliability, they’re a pretty great brand.



And you’re right. You’re right. The BMW 7 Series is just stuffed with useless technology. I have a 335i and it was great, but the 7’s are like “Wtf.” You need a 4 hour class just to turn on the headlights.



The LC is no joke. If you follow Doug Demauro it got one of the highest Doug Scores of all times. It got a great “Daily Driver” score as well

An interactive way to explore all the Doug Scores.

View: https://www.youtube.com/watch?v=giIP0XdT7SA




Like that is hands down the sickest car $100K can buy.



And they have an LC Hybrid? God damn.





In terms of the CLA Mercedes.. one thing we gotta understand in the US is…. these are luxury cars in the US, but in Germany they’re not really considered Luxury. They’re just regular cars lol. Like the C350? In Europe you can get them with a cloth interior in sick-shift. Not in the US. Only leather, only Automatic. Same with BMWs. In Europe those are police cars, security, etc. But I actually liked the A3… :(
 
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Niptuck MD

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Niptuck MD

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BMW and Audi are riddled with useless tech for the sake of tech and they are pieces of sh*t.

agreed and i should know! i worked at several bmw plants (non-germany) they treat their subcontracted workers like shit too!
 

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I see both sides of the equation where automobiles are concerned. Having sold Mercedes for about a year I can tell you that the money they spend on materials and processes is far more than the MSRP of any Hyundai.

I see both sides too…

Okay, let’s take the wine industry for instance. There were a few studies a while ago that embarrassed the shit out of wine experts all across the globe.

Any time they test wines? It’s bad.

"An article published in the Guardian last summer titled "Wine Tasting: It's Junk Science"reviews studies purporting to show that when it comes to wine, even the experts are unreliable guides. It isn't just that they disagree among themselves in the values and qualities of wines; they disagree with themselves from one minute to the next in evaluating the very same wine poured from the very same bottle."

Whoa.

Article: Is Wine-Tasting Junk Science?

Screen Shot 2018-08-24 at 6.18.25 PM.png
“These figures, and much of the WSJ piece, are based on studies by Robert Hodgson, a retired statistician and owner of a small California winery. Guess what he discovered when analyzing the results of wine competitions? They too have little consistency:

The medals seemed to be spread around at random, with each wine having about a 9% chance of winning a gold medal in any given competition… The distribution of medals, he wrote, “mirrors what might be expected should a gold medal be awarded by chance alone.”

Article: ‘Expert’ Wine Sippers Take Us All for Suckers | TIME.com

If there were an elements of “objective quality,” the numbers wouldn’t be like that. There would be certain wines that ranked better than others.

There was a really embarrassing study where oenology students (the science of wine) couldn’t even tell the difference between red and white wine!

"In a sneaky study, Brochet dyed a white wine red and gave it to 54 oenology (wine science) students. The supposedly expert panel overwhelmingly described the beverage like they would a red wine. They were completely fooled.”
Screen Shot 2018-08-24 at 6.17.13 PM.png
The Legendary Study That Embarrassed Wine Experts Across the Globe | RealClearScience

WSJ did a big piece on this:

A Hint of Hype, A Taste of Illusion

‘Expert’ Wine Sippers Take Us All for Suckers | TIME.com

So we can’t delude ourselves, this type of bullshit does exist. It’s just that cars with different horsepower, handling, better convince features, more comfort, is a little different than wine, which can have no convenience/luxury features. I think cars and watches are a little different in that there is some consensus among car/watch lovers about which ones are best, and price is pretty congruent with that.

And it’s important to realize that not every industry is like wine. For example Movie Critic have a high degree of correlation when deciding which movies are good and which suck. So again, not every industry is riddled with bullshit like wine.

This would be an interesting Data Science project to explore.

It all comes down to personal opinion and relative value does it not? To the person who views a vehicle as a means of transportation then yes, all vehicles are worth the same. Just like watches, headphones, (insert anything and everything).

I love cars and feel that my children are safer in a Mercedes, Lexus or Volvo than in a Kia so they hold higher value.

Yea some people just don’t care about cars. Me I’m a total car aficionado. I grew up around cars and the love of them. My dad was a mechanic and had a corvette.

I think he is spot on about the Lexus’ (Lexi?)

This made me laugh like a retard.

as the miserable attempt by MB at a mass market appeal in the CLA.

This made me laugh too. Mercedes is so awesome that they can’t even make a regular car right!
 
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Merging Left

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Screaming Eagle wine, anybody? That stuff doesn't even have a hundred year old legacy and story! It's literally a real estate agent who bought vineyard acreage in 1986, won an award from an esteemed wine critic, and now they sell their wine for $3k/BOTTLE. That's $36,000 per case of wine. Wut.
 

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Two simple examples, most cars spend a few hours in the paint shop during production, a Mercedes spends a few days. We had a sales manager who weighed about 275 who used to open a door and literally stand on the arm rest and rock the car...if you did that in just about any other car you’d have a door missing.

It kind of makes me sad when people knock a brand like Mercedes or Patek Phillepe. Like so much work went into making such a great product where no sacrifices are made. Every detail is perfect, every corner is well thought out.

And they get no respect.

Ask 40 people on the street “Who invented the Automobile” And almost all of them will answer “Duh... Henry Ford!” which it totally wrong.

The real answer?

Screen Shot 2018-08-24 at 7.06.01 PM.png
Screen Shot 2018-08-24 at 7.04.27 PM.png
And besides that Mercedes-Benz has been the innovation of the Automobile.

Screen Shot 2018-08-24 at 7.11.09 PM.png

Besides making the verst vehicle, in the 50’s they innovated crumble zones, electronic stability control, first vehicles with climate control, instrumental in the innovation of anti-lock brakes, FOUR WHEEL INDEPENDENT SUSPENSION (Cars before that just had F*cking rods through the wheels,) they were the first to do crash testing, the gated shifter, First electric powered vehicle, first supercharged car, etc etc etc

Mercedes is no joke. They’re not some BS for rich people. They’re a major innovator in the automobile market and arguably the #1 contributor to new technology.

Leading Through Innovation



Remember: Today’s luxury products are tomorrow status quo. There was a time where only the most luxurious of cars had radios own them. It’s flagship brands that move industries forward.
 
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