Profits are huge when you can keep your costs very low. At the same time you need to convince people to pay as much as possible.
The lower the costs and the higher the price you can charge, the better. The skin care and cosmetics industry is a great example – but there are many, many others. Including wealth creation.
Let’s take the beauty industry:
The costs are low because the ingredients are cheap. Often, they are really, really cheap.
The price is high because of marketing.
* Think of the images, the posters, the glamorous cosmetics counters.
* Think of the packaging, the advertorials, the adverts.
* Think of the way the popular magazines pump up your products, the quasi-scientific way they go on about nano-technology and liposomes and all that.
* Think of how they promise to make you beautiful. Young. Happy. Things you are prepared to pay money for.
This is how they get you to think that their products are valuable.
Now here’s another way to say the same thing:
These companies are profitable because people don’t know what they are buying.
So unless your product is truly the best, a large part of your marketing strategy is to build ignorance!
AND what’s more, in my experience the real solutions are always cheaper and simpler than you think.
The things that really work come for free or for very little, compared with the things that don’t.
So there is another reason to build ignorance! When the things that work are cheap, simple and easy to find, it’s a real threat to your expensive, poor quality, ineffective products! So you need people to stay ignorant because:
* that’s the only way they will pay hundreds or thousands of times what your products are really worth
* that’s the only way to be sure they will never stop buying your stuff when they find the simpler cheaper alternatives that really work
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