WHY ARE ROLEXES SO EXPENSIVE?

I recently worked for an ecommerce brand that sells watches.

During my research I discovered some interesting things.

Some of which may be useful to copywriters and marketers.

For example, why are Rolex watches so expensive? After all, there’s almost no functional difference between a $20 watch and a Rolex.

Both do exactly the same thing…

….so why does the Rolex go for $100,000 or more.

Before we can answer this question you have to understand the following.

You see, is a Rolex expensive, costly, or simply over-priced? People usually describe items with a high price point as being “expensive.” This generally refers to things which cost too much and do not justify their price. A lot of the time this is because people don’t know why that thing is expensive. If you don’t know why a Rolex goes for 6 figures, you’ll probably think that it costs too much. You may even see it as being “overpriced.” Not only that, you’ll view the price as a negative thing, and may even be put off from buying it. On the other hand, someone else may see that item as being cheap.

But why is this?

There are several reasons.

To start with, it mostly comes down to how someone perceives value.

If the person thinks the item will provide them with value, they will naturally see it as being cheap. The exact opposite is also true. If the person sees no value in the item they will view it as being expensive. For instance, some people won’t spend a thousand dollars on a watch, but will happily spend that same amount of money on wine.

Why?

Simply because they see value in the wine.

It ultimately comes down to this:

Does the person see value in the item…and…does this value reflect the price? If they don’t see any value in the item, they will see it as being expensive.  If they do see value, they will see it as being cheap and worth the cost.

So the real question is this…

How do you create this perception of value?

There are a few ways:

1. Time and effort

It takes watchmakers at Rolex 12 months to build one of their timepieces. This time and effort is reflected in the price. This is why you should always mention the time and effort that goes into building your product. If you’re a service provider, talk about the length of time that it took to learn your skills. After all, someone with decades of experience can always charge more than a rookie.

2. Availability

Rolex only produces a limited number of watches – around a million of each model. It’s this exclusivity and unavailability which really drives up the price. If you cannot have something, you simply want it more. This is why you should never seem too desperate to take on a job, or work with a client.

3. Complexity

Putting together a luxury watch is an extremely complex task. Some of these watches have more than a thousand parts. It takes a highly skilled person to perform this task. Once again this is why the price is so high. The lesson here, is that you should always talk about how difficult it is to build your product. Also talk about the quality of your materials and so on.  

4. Branding

You pay six figures for a Rolex because…well…it’s a Rolex. The fact is that Rolex has spent more than a 100 years building their brand. People know that it’s a high quality luxury watch, and that it will last forever.

This is also why you should work hard on building your own brand, and developing a reputation for quality and trust. A big part of this again, is exclusivity. Instead of focusing on selling as much as possible, you should concentrate on building your brand and making it more exclusive.

Ultimately, this will allow you to charge higher prices…

…and also make selling products straightforward, painless, and trouble-free.

Alastair Walton

THE GREATEST COPYWRITING LESSON YOU’VE NEVER HEARD OF

Today I want to give you one of the greatest copywriting lessons I’ve ever learnt.

This lesson is so simple, it will astonish you.

At the same time it’s so powerful, it could make you one of the most persuasive copywriters on the planet.

(This might be something you already know, in that case this will serve as a reminder.)

On the other hand, if you’re new to copywriting, this will make a great introduction.

This lesson is basically known as the direct response 40/40/20 rule. It simply states that 40% of your success is your offer, 40% is your list, and 20% is your copy. This is something that most newbie copywriters struggle to understand.

They think that copy is magic.

That becoming a word wizard is the key to success.

That it’s all about becoming the best and greatest writer of all time.

While this is true to a certain extent…it really isn’t the full picture.

You see, as I’ve just mentioned, the copy actually accounts for very little. What’s a lot more important is having a great offer that goes out to a great list. Get this part right and the copy really doesn’t matter. Even substandard copy will convert.

On the other hand, even the world’s greatest copy can’t help a bad offer to a bad list.

And that’s really the point I’m trying to make.

You see, no matter what you’re selling your prospects are buying your offer.

The better the offer, the greater the chances they will buy.

It doesn’t matter whether you’re selling tee shirts or a newsletter.

The offer is everything.

Here’s a great example of this:

I once read about a copywriter who was hired to sell a stock advisory service for an investing guru. This service combined subscriptions to all four of the gurus newsletters, plus additional stock picks and portfolio allocations. This service was going to be extremely expensive – $6776 a year! The copywriter came up with a brilliant offer. You see, the list they were selling to were already subscribers to one or more of these newsletters. So they decided to credit these people for these subscriptions. This is where the magic came in. If someone was already subscribing to these publications, they would get a credit of $11,294! As you can imagine this was a great hook. And this hook was used to great effect in the headline. Which turned out to be:

“Get $11,294 to cancel your subscription PLUS these services FREE”

I’m told this offer worked like crazy…and brought in millions in orders.

And it was all thanks to this great and believable offer.

That’s another important thing I want to stress.

The reason this worked so well is because people believed in it. What you have to understand is that no one buys unless they first believe. And boy did they believe. Readers could clearly see how it made sense to cancel their subscriptions…

…and get all 4 newsletter for FREE, just for joining this new service.

This was really the ultimate win-win offer.

And with an offer like this how could the reader possibly say no?

They couldn’t.

Alastair Walton

WHY ACTORS CHANGE THEIR NAMES

Need help choosing a pen name?

Here’s some advice:

You see, Game of Thrones frenzy is sweeping the world again…

With the release of House of the Dragon millions of people have returned to Westeros.

I binged watched this series a couple of weeks ago and believe me, it’s worth watching (Far better than the abysmal final season of Game of Thrones.) After watching I started reading up on the actors and while doing this discovered something you might find interesting. One of the most compelling characters is Corlys Velaryon otherwise known as the “Sea snake.”

He’s played by British actor Steve Toussaint.

While reading his Wikipedia entry something jumped out at me.

Like many actors he changed his name after getting into the industry.

The reason why is simple.

The last thing you want is another actor with the same name as you.

(Which is basically what happened in Steve’s case.)

If this happens…well…it could cause a lot of confusion.  

And this contains a valuable lesson for marketers.

If you’re planning on writing a book, or starting a “guru business”, then it’s a good idea to check if anyone else is using your name. This is something you should always do…whether you’re using a pen name or your real name. Not doing this could cause problems down the road.

A good example of this is social media accounts.

If there’s a dozen people with your name and they all have Facebook accounts…well…that’s something you want to avoid. Not only that, this is especially important for SEO. Does someone with your name have a website which uses that name in the URL…are they ranked in Google? This could make it harder to hit the top of the search results.

Now, this might sound extremely simple, but it’s a big mistake which a lot of people make.

(Myself included.)

So, when choosing a pen name, make sure to first check if anyone else is using that name…

…and if they are, then pick something different.

See you later,

Alastair Walton