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It’s not always how much you sell but the value of what you are selling

“As Oscar Wilde quipped, ‘The cynic knows the price of everything and the value of nothing.’ Are you charging your worth?”

Imagine walking into a posh boutique, casually browsing, and then setting your eyes on a handbag with a price tag that makes you do a double-take. “Surely, that’s the price of a car?” you wonder aloud. Well, darling, welcome to the world of Hermès Birkin bags! 👜

So, here’s the scoop. In the 1980s, English actress Jane Birkin happened to sit next to Hermès’ Chief Executive, Jean-Louis Dumas, on a plane. As the story goes, her straw bag spilled its contents, leading to a light-hearted chat about the difficulty of finding a suitable leather weekend bag. Voila! Inspiration struck, and the Birkin bag was born 👜

But the magic doesn’t just lie in its celeb-inspired beginnings. It’s about how Hermès took this bag and spun it into the stuff of legends. Instead of mass-producing it like any other accessory, Hermès went the other way. They made it exclusive. Want one? Prepare to join a waiting list. Oh, and did we mention it might take YEARS to get your hands on a new one? 👈

Here’s the kicker: while most brands might worry about losing customers to such exorbitant waiting times, Hermès understood something profound. The longer the wait, the higher the anticipation, the greater the exclusivity, and ultimately, the more irresistible the product becomes. It’s almost like waiting in line for the best rollercoaster ride, but this ride is a bag 😉

And the results? Phenomenal. Today, the Birkin is more than just a bag; it’s an investment. Some Birkins have been auctioned for over £200,000! Talk about a price appreciation 🚀

So, what’s the lesson here for small business owners? It’s not always about producing more or selling more. Sometimes, it’s about creating value around your product or service that people are willing to pay more. As counter-intuitive as it sounds, Hermès shows that less can indeed be so much more 🚀

Disclaimer: Paul Stankiewicz is the owner and principal at Paul Marks & Co Chartered Accountants which is the trading name of Paul Marks Ltd a Limited Company registered in England and Wales (registered number 4487645).This article is designed for the information of readers only and is the opinion of the author only. Readers should not act on any of the information contained in this article without seeking professional advice. Nothing in this article constitutes advice, nor does the transmission, downloading or sending of any information or the Material create any contractual relationship. Links to third party websites are provided as a convenience to the reader, Paul Marks Ltd does not control and is not responsible for any of those websites or their content. Paul Stankiewicz and Paul Marks Ltd accepts no liability or responsibility whatsoever for any loss or damage suffered by any user of the information contained on or accessed through this article or the Material downloaded.