Shifting Priorities from Utility to Experience
I start every morning - though I fail some days - writing in my journal. The latest iteration has been putting pen to paper in a Leuchstrumm notebook. I didn’t think much of this. I just found Leuchstrumm’s to have thicker paper and were the only ones that had dotted pages in my local bookstore.
Turns out, the author Neil Gaiman uses the exact same notebook for his writing. It’s as if I got some kind of validation on my choice of paper. I also heard Gaiman talk at length about fountain pens and how there is a store in NYC that he goes to purchase his pens from. I first thought that was a little excessive but that idea resurfaced again today.
It was only yesterday that I caught up with an old friend and we spoke about the world of mechanical keyboards. Yes, keyboards. I had previously learned there was a niche market where individuals bought limited edition keyboards… some that had even the chords hand-stitched by each artist/designer. Some go for $500+ to a few north of $1k.
It’s insane really. But then again, there are watches that cost $300k and baseball cards that go for $3m. I think in most cases, such expensive collectibles, art, and tools (like watches and cars) are nothing short of Zahavian signaling.
I’m no expert on it but it’s a signaling theory for evolutionary biology where the signal is considered honest if it costs more. Hence, the purchase of expensive watches/cars/paintings that others can’t afford signals your wealth and is a ticket for appearing more attractive. Just basic biology.
It’s the “I do it because I can.” It’s such a powerful line at times.
But such a signal only works if there is some kind of universally approved standard where everyone knows something is expensive. That’s where the power of brands comes into play. Probably why Tiffany’s and Rolex do so well as businesses. It’s not the quality. It’s the universally accepted signal they send.
Buying a keyboard or a fountain pen isn’t that though. I mean, I don’t think they provide any signal of “cost”. But there seems to come a time when people will want to go the extra mile to purchase what is "obviously a commoditized tool” for an extreme premium.
Such is the case for my friends who buy mechanical keyboards for $100+. It types fine like my $20 keyboard. My $20 one is even wireless at that. Same for a pen. A fountain pen could be even more cumbersome with its ink cartridge.
But it’s different. It’s a completely different experience. I used to write in my journal using a pretty decent ink pen. I didn’t think it was decent until I lost it and used a number of pens lying nearby. I was still able to write but it’s not the same. The words don’t pop out, I have to press a little harder and I eventually get distracted a little.
One might think ‘oh poor you’… but I guess it becomes a natural evolution that the more you spend time using a specific tool, the more you are willing to weight the importance of the experience and possibly become less price-sensitive to something that appears to be a commodity.
I mean, isn’t this the law that propels the niche markets? The bonsai tree grooming scissor store I saw in a documentary works precisely off of this. Those who use these scissors daily to groom? cut? their precious bonsai tree feels the experience matters tremendously. That’s why they will pay thousands of dollars and wait a long time to get their perfect pair of scissors.
I think it’s also why my mother uses premium knives from Germany whereas I use ones from Ikea. Her years of cooking experience outdoes mine by a few decades. But I’ve also done enough cooking on my own now to appreciate the experience of cooking with some great knives.
It’s just fascinating to realize that over time… as you use a tool for a long time…. The behaviour starts shifting. No, wait… maybe it’s the priority shifting. A shift to desire a better experience.
This is probably why expensive, premium smartphones still do well. Not only is Apple a strong brand that signals how much more its goods cost, but it’s also something people use every day and that’s why the priority isn’t so much on the pricing for the commodity that is the smartphone…. but the priority is on the experience as well. I think.
I think this could be one strong basis for why Lululemon has done so well as a company. It hits the areas of brand (for Zahavian signaling as it is a high-end athleisure brand) and a commodity (clothes) that is used so often that people decide the experience matters. I thought it was so unnecessary for such a long time but if I could… I would change my wardrobe to 100% Lululemon. Just…. Most of their stuff doesn’t fit short folks. Thank god for Uniqlo.
This is probably why product design matters. Especially for software that is used every day. Eventually, people want to move to something that provides a better experience because they will deal with it daily. They will also pay up for that too. If this were to get combined with a universally accepted signal for ‘wealth’… you’ve got a solid business on your hands.
Eventually, I imagine the user will tilt from merely prioritizing experience to greed. They will start buying more of the best but never even have a chance to use it. Like a powerlifter who has 10 pairs of incrementally different shoes… the writer with a dozen fountain pens, the engineer who has six Apple devices, and the yogi who has an entire wardrobe of Lululemon gear.
Companies like Ferrari, LVMH, Lululemon, Apple come to mind. But are there others? Maybe Tesla. I do hope I’ll be smart enough to spot another one before it becomes too obvious….. though the likelihood is I’ll only realize it after it’s obvious.