The Invisible Anchoring Strategy

The other day, I was watching a video explaining the business model for Hermès. It’s kinda brilliant.

The concept is – 

You can’t “easily” buy a bag; instead, it’s a privilege. 

If you’re not a VIP customer… and walk into a Hermès… you’re not “allowed” to buy a bag.

Yup.

It doesn’t matter if you have the money.

You have to prove your loyalty first by…

Buying a bunch of scarves, perfumes, belts… or even trash cans.

(I’m not kidding, there’s a Hermès trash can)

You have to spend 20-30k BEFORE you can get an “invitation” to buy a Birkin.

Now, here’s the interesting part.

The cheapest Birkin costs about 12-30k, which is less than the threshold.

So…

Why does Hermès make people jump through the hoops?

Well, it serves three purposes:

FIRST (the obvious answer)

It creates status. You know it’s “different” when someone wears a Hermès Birkin… versus an LV or Prada.

And when it comes to premium products, status is what they’re really buying.

(not the bag)

SECOND (the slightly obvious answer)

Hermès wants to build a list of long-term customers.

It doesn’t matter if you can afford a bag… or two.

If you complain about the “cost” of the additional unwanted goods… then you’re not “wealthy enough for Hermès.”

Because they want a clientele that can become repeat customers. (people who will come back to buy more every month… without going broke)

THIRD (the not-so-obvious answer)

There’s a magical effect I call “The Invisible Anchor.”

 (an advanced but different version of the traditional “price anchoring”)

This is a beautiful strategy for e-commerces who don’t want to rely on discount codes. (Discount flash sale is probably the “worst” form of price anchoring… because you train your customers never to buy full price.)

In addition…

In my experience, the Invisible Anchor often works BETTER than discounts. And you don’t have to sacrifice margin.

Now…

This strategy isn’t for everyone.

You must meet certain criteria.

(just like a Hermès Birkin isn’t for everyone)

But when it works, it works wonders.

That’s all I can share with you here. I’m reserving the rest of the secret for my private clients. 😛 If you’re interested, email me at “wy<@>wuyenhsu.com” with the subject line ‘PREMIUM,’ and I’ll check if you’re the right fit.

Cheering for you,
Wuyen

P.S. – If you want to study the Invisible Anchor, read this email a few more times. I’m teaching by showing here. 🙂