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Since our society is one that places a high premium on hard work, status, and achievement, this is not unexpected. If you break down and report your pain symptoms but they do not improve and your quality of life deteriorates, you are a failure as a patient and as a productive member of society.

Loving, of enemies is another dogma of feigned morality, and has besides no meaning. It is incumbent on man, as a moralist, that he does not revenge an injury; and it is equally as good in a political sense, for there is no end to retaliation; each retaliates on the other, and calls it justice: but to love in proportion to the injury, if it could be done, would be to offer a premium for a crime. Besides, the word enemies is too vague and general to be used in a moral maxim, which ought always to be clear and defined, like a proverb. If a man be the enemy of another from mistake and prejudice, as in the case of religious opinions, and sometimes in politics, that man is different to an enemy at heart with a criminal intention; and it is incumbent upon us, and it contributes also to our own tranquillity, that we put the best construction upon a thing that it will bear. But even this erroneous motive in him makes no motive for love on the other part; and to say that we can love voluntarily, and without a motive, is morally and physically impossible. Morality is injured by prescribing to it duties that, in the first place, are impossible to be performed, and if they could be would be productive of evil; or, as before said, be premiums for crime. The maxim of doing as we would be done unto does not include this strange doctrine of loving enemies; for no man expects to be loved himself for his crime or for his enmity. Those who preach this doctrine of loving their enemies, are in general the greatest persecutors, and they act consistently by so doing; for the doctrine is hypocritical, and it is natural that hypocrisy should act the reverse of what it preaches. For my own part, I disown the doctrine, and consider it as a feigned or fabulous morality; yet the man does not exist that can say I have persecuted him, or any man, or any set of men, either in the American Revolution, or in the French Revolution; or that I have, in any case, returned evil for evil.

THE ORGANIC FOODS MYTH A few decades ago, a woman tried to sue a butter company that had printed the word 'LITE' on its product's packaging. She claimed to have gained so much weight from eating the butter, even though it was labeled as being 'LITE'. In court, the lawyer representing the butter company simply held up the container of butter and said to the judge, "My client did not lie. The container is indeed 'light in weight'. The woman lost the case. In a marketing class in college, we were assigned this case study to show us that 'puffery' is legal. This means that you can deceptively use words with double meanings to sell a product, even though they could mislead customers into thinking your words mean something different. I am using this example to touch upon the myth of organic foods. If I was a lawyer representing a company that had labeled its oranges as being organic, and a man was suing my client because he found out that the oranges were being sprayed with toxins, my defense opening statement would be very simple: "If it's not plastic or metallic, it's organic." Most products labeled as being organic are not really organic. This is the truth. You pay premium prices for products you think are grown without chemicals, but most products are. If an apple is labeled as being organic, it could mean two things. Either the apple tree itself is free from chemicals, or just the soil. One or the other, but rarely both. The truth is, the word 'organic' can mean many things, and taking a farmer to court would be difficult if you found out his fruits were indeed sprayed with pesticides. After all, all organisms on earth are scientifically labeled as being organic, unless they are made of plastic or metal. The word 'organic' comes from the word 'organism', meaning something that is, or once was, living and breathing air, water and sunlight. So, the next time you stroll through your local supermarket and see brown pears that are labeled as being organic, know that they could have been third-rate fare sourced from the last day of a weekend market, and have been re-labeled to be sold to a gullible crowd for a premium price. I have a friend who thinks that organic foods have to look beat up and deformed because the use of chemicals is what makes them look perfect and flawless. This is not true. Chemical-free foods can look perfect if grown in your backyard. If you go to jungles or forests untouched by man, you will see fruit and vegetables that look like they sprouted from trees from Heaven. So be cautious the next time you buy anything labeled as 'organic'. Unless you personally know the farmer or the company selling the products, don't trust what you read. You, me, and everything on land and sea are organic. Suzy Kassem, Truth Is Crying

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At a certain point, a casual observer might feel that these pursuers of perfection are going over the top, and that the effort is too much. Just at that moment, something miraculous happens. You realize that there is actually further depth to the quality you are pursuing. There is a breakthrough, or the production of something completely different. With the creation of a new genre of products, a brand new market emerges, in which people are prepared to pay premium prices for qualities previously unimagined.

By focusing on making fewer, higher-profile products, and by refusing to compromise on quality, Apple was able to achieve greater efficiency while it charged a premium price.

Morality is injured by prescribing to it duties that, in the first place, are impossible to be performed, and if they could be would be productive of evil; or, as before said, be premiums for crime. The maxim of doing as we would be done unto does not include this strange doctrine of loving enemies; for no man expects to be loved himself for his crime or for his enmity.

Morality is injured by prescribing to it duties that, in the first place, are impossible to be performed; and, if they could be, would be productive of evil; or, as before said, be premiums for crime. The maxim of doing as we would be done unto does not include this strange doctrine of loving enemies: for no man expects to be loved himself for his crime or for his enmity.

Convenient Drain & Pipe Solutions Limited is one of the leading suppliers of Bailey Products’ drain rods and an exclusive range of cleaning equipments that are made with the premium-quality material.

I knew and trusted the company (Vegas World). I liked the product (the Vegas World package). I believed the urgency-building story (only 1,000 Hawaiian vacations available). I found the premium exciting and desirable.

Advertisers must spend more per person to advertise on popular TV shows relative to less popular shows, and those selling social products are willing to pay this premium to reach larger contiguous audiences. Taken to the extreme during major TV events like the Super Bowl, the majority of ads are selling social goods.31

... schools in many industrialized nations were not, for the most part, designed to produce innovative thinkers or questioners -- their primary purpose was to produce workers. The author Seth Godin writes, "Our grandfathers and great grandfathers built schools to train people to have a lifetime of productive labor as part of the industrialized economy. And it worked." To create good workers, educations systems put a premium on compliancy and rote memorization of basic knowledge -- excellent qualities in an industrial worker. (Or, as the cartoonist and Simpsons creator Matt Groening puts it, "it seems the main rule that traditional schools teach is how to sit in rows quietly, which is perfect training for grown-up work in a dull office or factory, but not so good for education.") And not so good for questioning: To the extent a school is like a factory, students who inquire about "the way things are" could be seen as insubordinate. It raises, at least in my mind, a question that may seem extreme: If schools were build on a factory model, were they actually designed to squelch questions?

It’s an offer you present to the marketplace that cannot be compared to any other product or service available, combining an attractive promotion, an unmatchable value proposition, a premium price, and an unbeatable guarantee with a money model (payment terms) that allows you to get paid to get new customers . . . forever removing the cash constraint on business growth.

When copies are free, you need to sell things that cannot be copied. Well, what can’t be copied? Trust, for instance. Trust cannot be reproduced in bulk. You can’t purchase trust wholesale. You can’t download trust and store it in a database or warehouse it. You can’t simply duplicate someone’s else’s trust. Trust must be earned, over time. It cannot be faked. Or counterfeited (at least for long). Since we prefer to deal with someone we can trust, we will often pay a premium for that privilege. We call that branding. Brand companies can command higher prices for similar products and services from companies without brands because they are trusted for what they promise. So trust is an intangible that has increasing value in a copy-saturated world.

There’s never been much love lost between literature and the marketplace. The consumer economy loves a product that sells at a premium, wears out quickly or is susceptible to regular improvement, and offers with each improvement some marginal gain in usefulness. To an economy like this, news that stays news is not merely an inferior product; it’s an antithetical product. A classic work of literature is inexpensive, infinitely reusable, and, worst of all, unimprovable.

The Netflix documentary Sour Grapes is a fascinating insight into this world. A crooked, though brilliant, Indonesian wine connoisseur called Rudy Kurniawan was able to replicate great burgundies by mixing cheaper wines together, before faking the corks and the labels. He was rumbled only when he attempted to fake wines from vintages that did not exist. I am told that it is possible to detect a forged Kurniawan wine by analysing the labels, but not by tasting the wine. I hate to say this, but Rudy was an alchemist. Several experts I have talked to in the high-end wine business regard their own field as essentially a placebo market; one of them admitted that he was relatively uninterested in the products he sold and would sneak off and fetch a beer at premium tastings of burgundies costing thousands of pounds a bottle. Another described himself as ‘the eunuch in the whorehouse’ – someone who was valuable because he was immune to the charms of the product he promoted.

The presumption that a high rate of continuous economic growth is possible puts a premium on investment in the sorts of institutions and conditions that facilitate such growth, like political stability, property rights, technology, and scientific research. On the other hand, if we assume that there are only limited possibilities for productivity improvements, then societies are thrown into a zero-sum world in which predation, or the taking of resources from someone else, is often a far more plausible route to power and wealth.

RIM shipped PlayBooks to major retail clients, such as Best Buy, which had preserved premium display space for the new product. Unfortunately, RIM had neglected to create a demo program to showcase and explain its latest product. With no helpful presentation on the screen of the device, shoppers were left to rummage around PlayBook programs on their own. Countless PlayBooks were immobilized after customers armed the devices with passwords, which the sales staff couldn’t unlock. “This happened hundreds of times,” says McDowell.

Taken together, these four factors help us understand why the transition to food production in the Fertile Crescent began around 8500 B.C., not around 18,500 or 28,500 B.C. At the latter two dates hunting-gathering was still much more rewarding than incipient food production, because wild mammals were still abundant; wild cereals were not yet abundant; people had not yet developed the inventions necessary for collecting, processing, and storing cereals efficiently; and human population densities were not yet high enough for a large premium to be placed on extracting more calories per acre.

Take the New York–based Lemonade, arguably the best funded of today’s crowdsurance startups. Via an app, Lemonade brings together small groups of policyholders who pay premiums into a central “claim pool.” Artificial intelligence does the rest. The entire experience is mobile, simple, and fast. Ninety seconds to get insured, three minutes to get a claim paid, and zero paperwork. Adding more technology to this arrangement, companies like the Swiss firm Etherisc sell “bespoke insurance products” on the Ethereum blockchain. Because smart contracts remove the need for employees, paperwork, and all the rest, all sorts of new insurance products are being created. Etherisc’s first offering is something not covered by traditional insurers: flight delays and cancellations. Individuals sign up via credit card, and if their plane is more than forty-five minutes late, they’re paid instantly, automatically, and without the need for any paperwork.

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But there are nevertheless three conclusions that seem to follow from our critical examination of the possibilities of inflationary policy. In the first place, all the aims of inflationism can be secured by other sorts of intervention in economic affairs, and secured better, and without undesirable incidental effects. If it is desired to relieve debtors, moratoria may be declared or the obligation to repay loans may be removed altogether; if it is desired to encourage exportation, export premiums may be granted; if it is desired to render importation more difficult, simple prohibition may be resorted to, or import duties levied. All these measures permit discrimination between classes of people, branches of production, and districts, and this is impossible for an inflationary policy. Inflation benefits all debtors, including the rich, and injures all creditors, including the poor; adjustment of the burden of debts by special legislation allows of differentiation. Inflation encourages the exportation of all commodities and hinders all importation; premiums, duties, and prohibitions can be employed discriminatorily.

The mythical ‘butterfly effect’ does exist, but we don’t spend enough time butterfly hunting. Here are some recent butterfly effect discoveries, from my own experience: A website adds a single extra option to its checkout procedure – and increases sales by $300m per year. An airline changes the way in which flights are presented – and sells £8m more of premium seating per year. A software company makes a seemingly inconsequential change to call-centre procedure – and retains business worth several million pounds. A publisher adds four trivial words to a call-centre script – and doubles the rate of conversion to sales. A fast-food outlet increases sales of a product by putting the price . . . up. All these disproportionate successes were, to an economist, entirely illogical. All of them worked. And all of them, apart from the first, were produced by a division of my advertising agency, Ogilvy, which I founded to look for counter-intuitive solutions to problems. We discovered that problems almost always have a plethora of seemingly irrational solutions waiting to be discovered, but that nobody is looking for them; everyone is too preoccupied with logic to look anywhere else. We also found, rather annoyingly, that the success of this approach did not always guarantee repeat business; it is difficult for a company, or indeed a government, to request a budget for the pursuit of such magical solutions, because a business case has to look logical.

American Girl dolls are nice. But they aren’t amazing. In recent years Toys“ R” Us, Walmart, and even Disney have all tried to challenge American Girl’s success with similar dolls (Journey Girls, My Life, and Princess & Me)—at a fraction of the price—but to date, no one has made a dent. American Girl is able to command a premium price because it’s not really selling dolls. It’s selling an experience. When you see a company that has a product or service that no one has successfully copied, like American Girl, rarely is it the product itself that is the source of the long-term competitive advantage, something American Girl founder Pleasant Rowland understood. “You’re not trying to just get the product out there, you hope you are creating an experience that will do the job perfectly,” says Rowland. You’re creating experiences that, in effect, make up the product’s résumé: “Here’s why you should hire me.” That’s why American Girl has been so successful for so long, in spite of numerous attempts by competitors to elbow in. My wife, Christine, and I were willing to splurge on the dolls because we understood what they stood for. American Girl dolls are about connection and empowering self-belief—and the chance to savor childhood just a bit longer. I have found that creating the right set of experiences around a clearly defined job—and then organizing the company around delivering those experiences (which we’ll discuss in the next chapter)—almost inoculates you against disruption. Disruptive competitors almost never come with a better sense of the job. They don’t see beyond the product.

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products offering competitively superior shock resistance and mean time between failure (MTBF) were accorded a significant price premium, compared to competitive offerings.

Apple, the most successful firm selling a low-cost product at a premium price. The total material cost for the iPhone X is $370, a fraction of the $999 price tag.80 Put another way, Apple has the profit margin of Ferrari with the production volume of Toyota.

When you come down to it, alignment is about helping people understand what you want them to do. Most contributors will be motivated to ladder up to the top-line OKRs—assuming they know where to set the ladder. As our team got larger and more layered, we confronted new issues. One product manager was working on Premium, the enhanced subscription version of our app. Another focused on our API platform, to enable third parties like Fitbit to connect to MyFitnessPal and write data to it or applications on top of it. The third addressed our core login experience. All three had individual OKRs for what they hoped to accomplish—so far, so good. The problem was our shared engineering team, which got caught in the middle. The engineers weren’t aligned with the product managers’ objectives. They had their own infrastructure OKRs, to keep the plumbing going and the lights on. We assumed they could do it all—a big mistake. They got confused about what they should be working on, which could change without notice. (Sometimes it boiled down to which product manager yelled loudest.) As the engineers switched between projects from week to week, their efficiency dragged.

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Because it is harder for a competitor to offer the full spectrum of capabilities comprising a well-designed solution bundle, it’s much easier to protect premium pricing in a solution sale than in a traditional product sale.

Earlier this century experts predicted younger shoppers, namely Millennials, would reject frozen food. That fear was misplaced. With changes to recipes, ingredients and practices, the long-held belief that frozen meals are highly processed stomach fillers has been dispelled. Products that are fresh but frozen, represent global ethnic flavors, and are comprised of premium ingredients have won over younger demographics.

The next time you go to the supermarket, look closely at a can of peas. Think about all the work that went into it—the farmers, truckers, and supermarket employees, the miners and metalworkers who made the can—and think how miraculous it is that you can buy this can for under a dollar. At every step of the way, competition among suppliers rewarded those whose innovations shaved a penny off the cost of getting that can to you. If God is commonly thought to have created the world and then arranged it for our benefit, then the free market (and its invisible hand) is a pretty good candidate for being a god. You can begin to understand why libertarians sometimes have a quasi-religious faith in free markets. Now let’s do the devil’s work and spread chaos throughout the marketplace. Suppose that one day all prices are removed from all products in the supermarket. All labels too, beyond a simple description of the contents, so you can’t compare products from different companies. You just take whatever you want, as much as you want, and you bring it up to the register. The checkout clerk scans in your food insurance card and helps you fill out your itemized claim. You pay a flat fee of $10 and go home with your groceries. A month later you get a bill informing you that your food insurance company will pay the supermarket for most of the remaining cost, but you’ll have to send in a check for an additional $15. It might sound like a bargain to get a cartload of food for $25, but you’re really paying your grocery bill every month when you fork over $2,000 for your food insurance premium. Under such a system, there is little incentive for anyone to find innovative ways to reduce the cost of food or increase its quality. The supermarkets get paid by the insurers, and the insurers get their premiums from you. The cost of food insurance begins to rise as supermarkets stock only the foods that net them the highest insurance payments, not the foods that deliver value to you. As the cost of food insurance rises, many people can no longer afford it. Liberals (motivated by Care) push for a new government program to buy food insurance for the poor and the elderly. But once the government becomes the major purchaser of food, then success in the supermarket and food insurance industries depends primarily on maximizing yield from government payouts. Before you know it, that can of peas costs the government $30, and all of us are paying 25 percent of our paychecks in taxes just to cover the cost of buying groceries for each other at hugely inflated costs. That, says Goldhill, is what we’ve done to ourselves. As long as consumers are spared from taking price into account—that is, as long as someone else is always paying for your choices—things will get worse.

A lot of beginner entrepreneurs—and a fair number of experienced ones, too—are afraid of high prices. They want to cut prices as soon as financially possible, probably because some intro-to-business class told them that’s the best way to build a brand. I can tell you from experience, though, that if you’re building a brand, you don’t want to get into the business of cutting prices. You want to be near the top price point in your market. The reason is simple: It’s much easier to scale a premium brand than it is to scale a low-priced brand. Only companies selling inventory in massive quantities can really win at that game. You’re not going to beat Walmart’s price, so don’t play Walmart’s game.

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Where do we need to focus our research and development spending, our early investors, and our best inventors? Answer: wherever we decide Green Premiums are too high. That’s where the extra cost of going green will keep us from decarbonizing and where there’s an opening for new technologies, companies, and products that make it affordable. Countries that excel at research and development can create new products, make them more affordable, and export them to the places that can’t pay the current premiums. Then no one will have to argue about whether every nation is doing its fair share to avoid a climate disaster; instead, countries and companies will be racing to create and market the affordable innovations that help the world get to zero.

outsourced research and development to startups, believing that the cost of the acquisition premium is more than offset by lowered risk and costs with better product predictability.

When we say that cage-free egg production costs only 10% to 20% more to produce at the level of retail (not farm) prices, we are assuming that the same distribution system is used for cage and cage-free eggs. When both cage-free and cage eggs are sold, it likely costs more to distribute cage-free eggs. The cage-free sector is small, prohibiting them from realizing the economies of scale enjoyed by the cage egg sector. Also, they are often different types of eggs. Studies have shown that about half of this 57% pre- mium charged for cage-free eggs is due to the fact that cage-free eggs tend to be brown eggs instead of white eggs. Consumers value brown eggs more, and stores have learned that when they bundle brown eggs with a cage-free production system they can charge particularly high prices. Moreover, cage-free eggs are often targeted to more affluent consumers and come in more elaborate packaging. In economics, this is referred to as price discrimination, and grocery stores probably charge a higher premium for cage-free eggs partly because they can.

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It’s not just workplace collaboration tools that have higher conversion rates, it’s also networked products like marketplaces and app stores—though for different reasons. When more sellers are part of a marketplace, there’s more selection, availability, and comprehensive reviews/ratings—meaning people are more likely to find what they want, and each session is more likely to convert into a purchase. Social platforms often monetize users by providing social status, but status has value when there’s more people in a network. For example, on Tinder, users can send a “Super Like,” which lets a potential match know that you really like them. A feature like this is most useful once there’s a rich network of potential suitors and matches, giving users more of a reason to try to stand out. Same with virtual goods in multiplayer games like Fortnite, which has generated hundreds of millions in revenue on “emotes”—the virtual dances that differentiate a player. This only holds value if many of your friends play and appreciate the premium emotes you’ve purchased. As a result, a more developed network creates an incentive for people to invest in their standing within the game—this is the Economic Effect at work.

When examined through the lens of Meerkat’s Law and the central framework of this book, it is obvious why the resulting networks generated by big launches are weak. You’d rather have a smaller set of atomic networks that are denser and more engaged than a large number of networks that aren’t there. When a networked product depends on having other people in order to be useful, it’s better to ignore the top-line aggregate numbers. Instead, the quality of the traction can only be seen when you zoom all the way into the perspective of an individual user within the network. Does a new person who joins the product see value based on how many other users are already on it? You might as well ignore the aggregate numbers, and in particular the spike of users that a new product might see in its first days. As Eric Ries describes in his book The Lean Startup, these are “vanity metrics.” The numbers might make you feel good, especially when they are going up, but it doesn’t matter if you have a hundred million users if they are churning out at a high rate, due to a lack of other users engaging. When networks are built bottom-up, they are more likely to be densely interconnected, and thus healthier and more engaged. There are multiple reasons for this: A new product is often incubated within a subcommunity, whether that’s a college campus, San Francisco techies, gamers, or freelancers—as recent tech successes have shown. It will grow within this group before spreading into other verticals, allowing time for its developers to tune features like inviting or sharing, while honing the core value proposition. Once a new networked product is spreading via word of mouth, then each user is likely to know at least one other user already on the network. By the time it reaches the broader consciousness, it will be seen as a phenomenon, and top-down efforts can always be added on to scale a network that’s already big and engaged. If Big Bang Launches work so poorly in general, why do they work for Apple? This type of launch works for Apple because their core offerings can stand alone as premium, high-utility products that generally don’t need to construct new networks to function. At most, they tap into existing networks like email and SMS. Famously, Apple has not succeeded with social offerings like the now-defunct Game Center and Ping. The closest new networked product they’ve launched is arguably the App Store, but even that was initially not in Steve Jobs’s vision for the phone.87 Most important, though, you aren’t Apple. So don’t try to copy them without having their kinds of products.

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The seed we were planting was Pioneer Hi-Bred’s 34H31, a strain that the catalog described as “an adaptable hybrid with solid agronomics and yield potential.” The lack of hype, notable for a seed catalog, probably reflects the fact that 34H31 does not contain the “YieldGard gene,” the Monsanto-developed line of genetically engineered corn that Pioneer is currently pushing: The genetically modified 34B98, on the same page, promises “outstanding yield potential.” Despite the promises, Naylor, unlike many of his neighbors, doesn’t plant GMOs (genetically modified organisms). He has a gut distrust of the technology (“They’re messing with three billion years of evolution”) and doesn’t think it’s worth the extra twenty-five dollars a bag (in technology fees) they cost. “Sure, you might get a yield bump, but whatever you make on the extra corn goes right back to cover the premium for the seed. I fail to see why I should be laundering money for Monsanto.” As Naylor sees it, GMO seed is just the latest chapter in an old story: Farmers eager to increase their yields adopt the latest innovation, only to find that it’s the companies selling the innovations who reap the most from the gain in the farmer’s productivity.

At Wrist Envy Watch Straps, we pride ourselves on being a leading UK watch strap supplier based in Coventry, West Midlands. Our watch straps are custom-made by skilled craftsmen and many of our products we have designed and are unique to us. Using high-quality materials we aim to offer the best watch straps that we would be proud to wear, and as we are a family-run business our low overheads mean that we are able to offer premium products at a significantly reduced price compared to other watch strap companies selling equivalent products.

We found that suppliers of nonstrategic products and services don’t fully appreciate this purchasing task. So when they try to land a deal, they make two common mistakes. THEY FOCUS DOGGEDLY ON THEIR OFFERINGS’ DISTINCTIVE FEATURES EVEN WHEN CUSTOMERS DON’T WANT OR NEED THEM. The hope is that features that go beyond the specifications will win over the customer and get him or her to pay a premium. But trying to persuade a skeptical customer that such extras will add value is no easy task,

Before the iPod, iPhone, and iPad, Apple’s products had been primarily purchased by Apple fans, designers, and other discerning users willing to pay a big premium. Now Apple’s products had become mainstream.

innovator’s dilemma: Should we invest to protect the least profitable end of our business, so that we can retain our least loyal, most price-sensitive customers? Or should we invest to strengthen our position in the most profitable tiers of our business, with customers who reward us with premium prices for better products?

WE CAN’T COMPETE HEAD TO HEAD WITH APPLE,' SAYS A HIGH-LEVEL SOURCE AT LAB126. 'THERE IS A BRANDING ISSUE: APPLE IS PREMIUM, WHILE OUR CUSTOMERS WANT A GREAT PRODUCT AT A GREAT PRICE.

Structureflex has a long and successful history of supplying engineered premium fabric Sails, Structures and services to the professional building and Shade supplier markets aroud the world. In addition we offer a range of products that include: Barrel Arches Cantilever Walkways and Car Ports Conic Structures Hip and Ridge structures

Fit is important because discrete activities often affect one another. A sophisticated sales force, for example, confers a greater advantage when the company’s product embodies premium technology and its marketing approach emphasizes customer assistance and support.

Hardie Boys- Exterior Millwork Exterior spaces on your property are largely exposed to the elements and that means they have to endure considerable wear and tear. This is why it becomes important to make sure that the structures, features and elements are manufactured by specialists that use high-quality, weather-resistant materials and products. We at Hardie Boys, Inc. are a leading manufacturer of various type of exterior architectural work. Since our inception in 1997, we have moved from strength to strength and created a niche for ourselves in this space. Today, when property owners across the region want any exterior millwork done, the first company they think of is us. Not only do we design, manufacture & install a variety of columns, soffit systems, brackets and louvers and a number of other similar products, but use very unique materials and techniques in making these features. Take a look at how our products differ from standard ones used in these applications: • Longevity- Traditionally, these features are made using materials such as foam, wood, concrete, plaster, brick, aluminum, iron etc. While most of these materials are quite hardy they aren’t always able to withstand the elements well. Wood can rot, while metal can rust and corrode over time; concrete tends to develop cracks when exposed to temperature fluctuations and plaster loses its resilience over time. All our products are made with a unique cellular PVC material which is extremely resilient and lasts for a number of years without any trouble. • Minimal maintenance- When you have exterior structures made of wood, they require specialized treatment and have to be polished or painted with regularity. Metal features have to be sanded and painted regularly as well and concrete needs to be resurfaced when it develops cracks. In comparison, the cellular PVC material we use is low-maintenance and only requires basic cleaning. • Aesthetics- As mentioned earlier, the material we use in exterior millwork is weather-resistant and doesn’t fade or deteriorate as much as traditionally-used materials do. This means the features and installations on your property continue to look attractive and add to the aesthetics and value of your property. • Fast and simple installation-The installation of the features made of cellular PVC is easy and quick. This means the project can be completed within a shorter timeframe and with the least amount of disruption to the daily activities on your property. • Versatility- This material is extremely versatile and can be used in the manufacture of various features and installation. We are also very creative and innovative in our approach and keep adding new products to our existing line of premium products. We are a customer-centric company that focuses on customization; and work very closely with our customers and provide beautifully-designed custom exterior millwork installations that are resilient and durable. While the British West Indies style is what we are more inclined towards, our products complement architectural styles including Dutch West Indies, Florida Vernacular, Coastal, Key West and more. For any more information about our custom designed cellular PVC, exterior millwork, contact Hardie Boys, Inc. on this number- 954-784-8216.

P&G excel at proactively managing their product ranges, as they have a history of divesting commodity-type brands, like Crisco and Oxydol, brands they owned for a century, while purchasing ones that are larger, have greater scope for innovation and a proven ability to sustain price premiums, such as Gillette, Clairol and Duracell.

Manufacturers have one advantage that can never be overcome if used with focus, vigour and investment, and that is innovation. Yogurt, seemingly an ideal category for private label to take the lion’s share, has seen private label share decline. The top-five leaders, Danone, Yoplait/Sodiaal, Yakult Honsha, Nestlé and Müller, represent half of all yogurt sales. Their innovation has been developing premium products, like pro-biotic yogurt and yogurt enhanced with fruit, and they launch continually; between 2006 and 2010 Danone introduced nine new products. Although retailers have developed brands, Aldi has Fit & Active non-fat yogurt and Kroger has Carb Master Yogurt, they haven’t won over consumers, owing to their lack of innovation. Both are seeing sales decline.

One company that manufactured resins used in exterior paints discovered this firsthand. By researching the needs of commercial painting contractors—a key customer segment—the company learned that labor constituted the lion’s share of contractors’ costs, while paint made up just 15% of costs. Armed with this insight, the resin maker emphasized that its product dried so fast that contractors could apply two coats in one day—substantially lowering labor costs. Customers snapped up the product—and happily shelled out a 40% price premium for it. Three

By combining software with another, more readily monetized product — services, in this case — Amazon is able to efficiently extract profit from a growing, volume market. What’s more impressive, however, is that because Amazon is building primarily from either free software (in the economic sense) or software it developed internally, it is paying out minimal premiums to third parties for the services it offers. Which means that not only is AWS a volume business, it may be a high-margin business at the same time. Amazon does not break out its AWS revenues, so we’re forced to rely on estimates, but UBS analysts Brian Fitzgerald and Brian Pitz projected in 2010 that AWS’s margins would grow from 47% in 2006 to 53% in 2014. Last year, Andreas Gauger, the chief marketing officer for Amazon competitor ProfitBricks, estimated Amazon’s margins were better than 80%.

Herrick then had to prove the third part of his proposition—that a demand for wine from this region could be established in the UK market. Not surprisingly, convincing the key buyers in the specialty chains like Oddbins and Victoria Wines took longer than first thought. The 1993 vintage was small and somewhat experimental; it was really not until the 1994 vintage was available that the buyers became confident of the sustainability and quality of the James Herrick label. The big retailers Tesco and Sainsbury’s also bought the product as it began to establish a position at the then premium price point of £3.99 a bottle. The fundamental pieces of the core proposition were beginning to work.

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When companies pay customers to try out their products and services, it’s a customer acquisition program. When companies invest in activities that increase customers’ willingness to pay a premium price, then they have a loyalty program.

Launching an innovative premium jelly bouillon into a highly competitive market at the height of austerity, for example, might not have been thought the wisest move. Yet with people eating out less, the demand for high-quality convenience products that enable people to cook at home has grown. As

HDFC Bank was the first of the private lenders to go public— even before it completed a full year. 'It was a mistake,' Deepak told me. The RBI required the new banks to go public within a year but all other lenders went back to the regulator and got extensions. 'We didn't ask for it. We were too naive,' Deepak said. 'Everybody took time as they wanted to get a premium. We sold at par, ₹10. But I have no regrets.' Deepak pushed for a par issue as the bank had nothing to show. And the disaster of parent HDFC's listing was still haunting him, though that had happened a decade and a half ago. In 1978, India's capital market was in a different shape and mortgage was a new product, not understood by many. HDFC put the photograph of its first borrower on the cover of its balance sheet, a D. B. Remedios from Thane, who took a loan of ₹35,000 to build his house. The public issue of HDFC bombed. In an initial public offering (IPO) of ₹10 crore, the face value of one share was ₹100. ICICI, IFC (Washington) and the Aga Khan Fund took 5% stakes each in the mortgage lender and the balance 85% equity was offered to the public, but there were few takers. The stock quoted at a steep discount on listing. For the bank, Deepak did not want to take any chance. So portions of the issue were reserved for the shareholders and employees of HDFC as well as the bank's employees. HDFC decided to own close to a 26% stake in the bank and NatWest 20%. Satpal was offered about 5% and the public 25%. The size of the public issue was ₹50 crore. 'We didn't know whether it would succeed. Our experience with HDFC had been a disaster,' Deepak said. But Deepak had grossly underestimated investors' appetite for the new bank. The issue, which opened on 14 March 1995, was subscribed a record fifty-five times. The stock was listed on the Bombay Stock Exchange (now known as BSE Ltd) on 26 May that year at ₹39.95, almost at a 300% premium.

My uncle used to make tennis rackets. His rackets were made in the exact same factory as a name-brand racket. They were made of the same material on the same machine. The only difference was that when my uncle’s rackets came off the assembly line, they didn’t put the well-known brand logo on the product. My uncle’s rackets sold for less money, in the same big-box retailer, next to the name-brand rackets. Month after month, the name-brand rackets outsold the generic-brand ones. Why? Because people perceived greater value from the name-brand rackets and felt just fine paying a premium for that feeling. On a strictly rational scale, the generic rackets offered better value. But again, value is a perception, not a calculation, which is the reason companies make such a big deal about investing in their brand. But a strong brand, like all other intangible factors that contribute to the perception of value, starts with a clear sense of WHY.

The pressure to provide services better, faster and cheaper is forcing the legal industry to behave more like a business in an ever-changing economy. Law firms will have to sacrifice the premium pricing of the billable hour in order to improve efficiency and productivity. Law firms will have to become more flexible in their pricing models and strategies. They will have to listen much more closely to their clients and customers.

the innovator’s dilemma: Should we invest to protect the least profitable end of our business, so that we can retain our least loyal, most price-sensitive customers? Or should we invest to strengthen our position in the most profitable tiers of our business, with customers who reward us with premium prices for better products?

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International labor mobility What’s the problem? Increased levels of migration from poor to rich countries would provide substantial benefits for the poorest people in the world, as well as substantial increases in global economic output. However, almost all developed countries pose heavy restrictions on who can enter the country to work. Scale: Very large. Eighty-five percent of the global variation in earnings is due to location rather than other factors: the extremely poor are poor simply because they don’t live in an environment that enables them to be productive. Economists Michael Clemens, Claudio Montenegro, and Lant Pritchett have estimated what they call the place premium—the wage gain for foreign workers who move to the United States. For an average person in Haiti, relocation to the United States would increase income by about 680 percent; for a Nigerian, it would increase income by 1,000 percent. Some other developing countries have comparatively lower place premiums, but they are still high enough to dramatically benefit migrants. Most migrants would also earn enough to send remittances to family members, thus helping many of those who do not migrate. An estimated six hundred million people worldwide would migrate if they were able to. Several economists have estimated that the total economic gains from free mobility of labor across borders would be greater than a 50 percent increase in world GDP. Even if these estimates were extremely optimistic, the economic gains from substantially increased immigration would be measured in trillions of dollars per year. (I discuss some objections to increased levels of immigration in the endnotes.) Neglectedness: Very neglected. Though a number of organizations work on immigration issues, very few focus on the benefits to future migrants of relaxing migration policy, instead focusing on migrants who are currently living in the United States. Tractability: Not very tractable. Increased levels of immigration are incredibly unpopular in developed countries, with the majority of people in Germany, Italy, the Netherlands, Norway, Sweden, and the United Kingdom favoring reduced immigration. Among developed countries, Canada is most sympathetic to increased levels of immigration; but even there only 20 percent of people favor increasing immigration, while 42 percent favor reducing it. This makes political change on this issue in the near term seem unlikely. What promising organizations are working on it? ImmigrationWorks (accepts donations) organizes, represents, and advocates on behalf of small-business owners who would benefit from being able to hire lower-skill migrant workers more easily, with the aim of “bringing America’s annual legal intake of foreign workers more realistically into line with the country’s labor needs.” The Center for Global Development (accepts donations) conducts policy-relevant research and policy analysis on topics relevant to improving the lives of the global poor, including on immigration reform, then makes recommendations to policy makers.

From a pure development model perspective, larger technology vendors have long outsourced research and development to startups, believing that the cost of the acquisition premium is more than offset by lowered risk and costs with better product predictability.

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The tobacco settlement money went to lawyers and to governments, which effectively turned the money into a tax and then spent it on state bureaucracy. Regular folk did not receive any tax refund checks, nor did we see lower health insurance premiums, but we did pay more for everyday products not related to smoking. This means we are, in effect, paying billions of dollars in additional tax besides the billions in legal fees because of the tobacco settlement, as well as funding the next legal campaign to collect another large pay-day in contingency fees. It is very interesting to note during the tobacco suit that, while claiming various individuals were being victimized, or medical costs were mounting from misleading advertising or dishonest business practices, it was lawyers and governments, not the people nor their insurance companies, that collected all the loot. This the type of litigation did nothing to improve your life and it raised your cost of living.

Masstige: By creating a “junior” category range which offers relative prestige to the middle classes at a high but affordable price, they can now start to realise the dream of luxury. These products are still far cheaper and often inferior to ultra-luxury products. Premium products: Products with additional features or made from better materials, which typically commands a price premium of 10 to 50% above ordinary products within the same category, yet these products are far cheaper than ultra-luxury products. Luxury products: Typically, these products share some parity points with ordinary products, but are sufficiently distinguished and often demand a price premium of 50 to 500% over ordinary goods. Ultra luxury: These are exceptional products and services, which can hardly be compared to ordinary products and services. For example, a holiday to space or a private jet.

The big advantage with price-simplifying is that it is often possible to build a huge mass market and a business system that cannot be imitated and out-scaled easily – at least not after the early days – which effectively shuts out all rivals. The price-simplifier is likely to end up with much higher volume than the proposition-simplifier, for the latter relies on the customer’s willingness to pay a premium for a demonstrably superior product. The rub for proposition-simplifiers is that they need to keep ahead of their rivals through constant innovation and new product development – otherwise, they will lose market share and suffer falling margins. Yet they may be able to build an extremely valuable, loyal following and brand among the middle to top of any given market. The price-simplifier must price down the experience curve, passing on cost savings and keeping margins tightly constrained. In contrast, the proposition-simplifier can – sometimes – hang on to fat net margins: up

Interestingly, Jockey’s first attempt to enter India wasn’t with the Genomals. It was with Associated Apparels in 1962. Through the 1960s, many foreign innerwear brands were launched in India. Associated Apparels introduced the then world-famous Maidenform bras (owned today by Hanes) and tied up with Jockey to launch Jockey underwear in 1962. The international brand, Lovable, entered India in 1966 through a licensing deal and became a huge success. Along with it entered the brand Daisy Dee, through a subsidiary of Lovable, followed by Feelings. In 1971, Maxwell Industries launched VIP-branded innerwear for men in the economy segment, catching the attention of the discerning public with an advertisement featuring a Bollywood actor. In 1973, however, Jockey decided to leave India after the Indian government used the Foreign Exchange Regulation Act (FERA) to force multinational companies to dilute their ownership in their Indian ventures to 40 per cent. After Jockey exited India, its competitors flourished. Associated Apparels continued to focus on mid-premium innerwear during the 1980s and was successful in establishing themselves as a dominant player in the mid-premium innerwear segment through Liberty (men) and Libertina (women). Maxwell Industries, during the 1980s, launched the brand, Frenchie, to cater to the mid-premium innerwear segment. In 1985, Rupa & Co. emerged in the innerwear market, offering products across categories, including men, women and kids, and became one of the biggest manufacturers and sellers of innerwear in India. The success of Rupa was followed by many other domestic brands in the 1980s and ’90s, including Amul, Lux Cozi and Dollar in the men’s category, while Neva, Bodycare, Softy, Lady Care, Little Lacy, Red Rose, Sonari, Feather Line, etc., were the key players in the lingerie market. Then came the liberalization of 1991. With the regulatory hurdles to enter India removed, Jockey decided to return to India. And this time, it chose the right partners.

Despite initial enthusiasm from Page’s distributors, as an overall category, innerwear remained a low-profile product in retail stores. This would ultimately necessitate a high-pitched, pan-India advertising campaign from Page, but the costs were prohibitive. Competitive intensity from incumbents had already increased substantially during 1995–2000. When the company reached sales of Rs 21 crore in FY2000, Rupa and Maxwell were already at Rs 150 crore each. One level above them, in the mid-premium segment, brands like Liberty, Libertina and Tantex (TTK Tantex) were firmly ensconced. Associated Apparels (Liberty and Libertina) reported sales of Rs 100 crore during the same period. In a stroke of luck for Page, both TTK Tantex and Associated Apparels fell prey to labour strikes. TTK Tantex saw labour-related plant shutdowns in 1997 that lasted for two years, sending the company’s revenues into a steady descent (see Exhibit 55). The TTK Group had twenty companies across many sectors and, due to lack of management bandwidth to handle the crisis, sold the innerwear brand in FY02. In the same year, Associated Apparels had a labour strike in one of its factories that disrupted its supply chain. The exit of both TTK Tantex and the crippling of Associated Apparels played into Page’s hands as all the large innerwear retailers (dealers) in northern and western India shifted to Jockey.

This perception of fairness—that one set of rules applies to players big and small—has been entirely missing from our collective responses to climate change thus far. For decades, regular people have been asked to turn off their lights, put on sweaters, and pay premium prices for nontoxic cleaning products and renewable energy—and then watched as the biggest polluters have been allowed to expand their emissions without penalty.

Over 70 per cent of the medium and heavy commercial vehicles on Indian roads are made by Telco. Telco is able to manufacture 99.8 per cent of its parts in India. A family of 1,500 ancillary suppliers furnish all kinds of components. About 50 per cent of the parts that go into the trucks are supplied by them. Over the years each supplier has been trained by Telco engineers to provide the high quality of components required. For several years such was the demand for Telco trucks that they commanded a premium price in the market but Telco held its price line. I once questioned then chairman and managing director of Telco, Mr Moolgaokar, why he did that. He replied: ‘Profits should come from productivity and not by raising prices in a favourable market. Our greatest asset is customer affection.

The easiest way to describe how to harness the galvanizing power of why is with a tool I call the belief statement. For example, most of Apple’s product launches in recent years feature slick videos with commentary from Apple designers, engineers, and executives. These videos, while camouflaged as beautiful product showcases, are actually packed with statements not about what the products do but about the design thinking behind them: in essence, the tightly held beliefs with which Apple’s design team operates. We believe our users should be at the center of everything we do. We believe that a piece of technology should be as beautiful as it is functional. We believe that making devices thinner and lighter but more powerful requires innovative problem solving. Belief statements like these are so compelling for two reasons. First, the right corporate or organizational beliefs have the ability to resonate with our personal belief systems and feelings, and move us to action. In fact, the 2018 Edelman Earned Brand study revealed that nearly two out of three people are now belief-driven buyers.4 And as we saw in our discussion of buyers’ emotional motivators in chapter 3, this works even if the beliefs stated are aspirational. For example, if my vision for my future self is someone who weighs a few pounds less and is in better physical shape, a well-timed ad from a health club or fancy kitchen blender evangelizing the benefits of a healthy lifestyle may be enough to rapidly convert me. In the case of Apple, the same phenomenon results in mobs of smitten consumers arriving at stores in droves, braving long lines and paying premium prices, as if to say, “Yes! I do believe I should be at the center of everything you do! Technology should be beautiful! Thinner? Lighter? More powerful? Of course! We share the same vision! We’re both cool!” (Although these actual words are rarely spoken aloud.) The second reason belief statements are so compelling is because they help us manifest the conviction and emotion critical to delivering our message in an authentic way.

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Coca-Cola’s other profitable variation arose serendipitously. For two years, Candler was pestered by an entrepreneur from Chattanooga, Benjamin Franklin Thomas, who wanted to bottle Coca-Cola. In 1889, Candler reluctantly agreed to Thomas’s plan. The bottling of Coke was an instant success, leading to high profits for the company and bottlers. For Coca-Cola, bottlers created a huge new market without any capital need. By 1904 there were more than 120 bottling plants throughout the US. Coca-Cola may be the first example in history of a company concentrating on its ‘core competencies’ (in this case, product formulation, branding and marketing) and outsourcing all capital-intensive functions. As a result, the company grew enormously without having to raise much external capital. And it all happened by chance. When competing colas emerged, Coke was able to command a substantial price premium. To this day, Coca-Cola has remained highly profitable. It currently has an operating margin of 26 per cent, instead of the 5 to 10 per cent typical in the food and beverage industry.

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