May 4, 2018

Let’s do a quick experiment...

Grab a pencil and paper and then answer the following two questions.

Q1: Based only on this partial photo and with additional information, how much would you pay this scratched up watch?

Once you have a number in mind (even if that number is \$0) please write it down on your piece of paper.

Okay... next question...

Q2: Based on this slightly larger photo of the same scratched up watch, how much would you pay?

Once you have a number in mind (even if that number is \$0) please write it down on your piece of paper.

Okay... now compare the two numbers. Are they the same? Is the second number higher or lower than the first?

If you are familiar with the brand names Tiffany or Patek Philippe, your second number will probably be higher than the first.

Probably a lot higher.

In fact, the more you know about Tiffany and Patek Philippe (especially Patek) the more you’d be willing to pay.

I can prove this.

How?

Because someone who is a Patek junkie just bought this exact watch at auction for \$642,500 USD.

For a beat up watch.

Why would someone do this?

To be honest, it doesn’t really matter why.

People want stuff. It’s a simple as that.

What matters is that you have something to sell that people want.

Which begs the question...