I'm a designer who turned into a writer who turned into a startup CEO. My mission is to help creators earn a living. Subscribe for essays on building an audience and earning a living as a creator.
How to make expensive products look cheap
Hey Reader,
If you have an audience of millions of people, selling products like mugs and t-shirts is relatively easy. You can make a lot of money selling inexpensive products to thousands of people.
But if you don’t have a massive audience, another way to make a lot of money is to sell high-priced products to fewer people.
Let’s say I have a $6,000 product. Would you say that’s expensive or not expensive?
It’s neither. “Expensive” is relative. $6,000 is only expensive if you compare it to the latte you bought this morning.
But this isn’t a lesson on price anchoring. I want to talk about something different:
Getting adjacent to high-value transactions.
Mike Patey is an aviator, self-taught engineer, and experimental aircraft builder based in Utah. He has an incredible YouTube channel where he demonstrates how his aircraft are built and shows the extensive customizations he’s made that have helped him set multiple world records. It’s super interesting stuff.
But what’s brilliant is how he’s taken the attention he’s accumulated through his YouTube channel and directed it toward a very niche, but lucrative, product business called Best Tugs.
You’ve probably seen those vehicles at the airport that attach to the front of planes and move them around the runway.
Small planes are slightly too big to move yourself but not so large they warrant a car to move around. That’s where tugs come in.
Tugs have a little tow bar you can hook onto the front wheel of a plane to move it around.
Mike sells these. I would know, because I bought one for my plane!
When you’re spending $500,000 or $1M on a plane, a $6,000 purchase seems like nothing. It’s an afterthought.
That’s the genius part about putting yourself and your products adjacent to high-value transactions. When we’re talking about hundreds of thousands, or millions of dollars, a few thousand is a rounding error.
Consider your business: what are some ways you can get adjacent to high-value transactions and take a cut?
PODCAST
Big Ideas, Bootstrapping, and Balance with Sam Parr
While growing a highly visible business, Sam Parr has learned a ton about making connections and turning your business into a real competitor.
We talk with Sam about growing a business, the value of delegation, and the ins and outs of how we approach managing our businesses. We also discuss the value of connecting with your competitors, and why you don’t need an original idea to create a successful business.
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EVENT - BABY BATHWATER
The Anti-Conference For High Performers
I'm speaking at Baby Bathwater and you should consider coming. This highly-vetted, sponsor-free event is happening February 26–29th in Cabo. It’s for 7, 8, & 9-figure founders and entrepreneurs looking for like-minded peers who genuinely understand your journey.
It’s a no-pitch, all-inclusive experience (transportation, food, lodging, alcohol, snorkeling, whale watching, live music, etc. is covered)...
…and it’s sold out. All 130 tickets have been purchased and they have a waiting list.
But the founders already set aside 5 tickets in my name and this is the first chance I’m getting to mention it in my newsletter, so they’ve held those spots. A $1,500 discount will be applied if you're accepted.
Have a great week!
—Nathan
Nathan Barry
I'm a designer who turned into a writer who turned into a startup CEO. My mission is to help creators earn a living. Subscribe for essays on building an audience and earning a living as a creator.