The $7,000 Handbag

This is a snippet from an email Ben Settle sent out.

Here is part of his email.

Anyway, let me tell you a story about Stefania:

She grew up working in her mom’s resale shop in Manhattan.

You can go there and buy very expensive, name-brand products very cheap compared to the regular price.

And, she was explaining to me how there were certain extremely expensive and prestigious hand bags, like Chanel, that normally go for $7,000 new that you can go through her mom’s store and get them a lot cheaper.

And yet:

That $7k bag is no more intrinsically valuable than a $17 bag you get at Walmart.

The reality is, they both carry things.

Maybe there’s a better leather used or something.

(Although she has told me it's often the exact opposite -- cheaper production values)

But $7,000 better?

Probably not.

But the $7,000 bag has the status, and the $17 Walmart bag doesn’t.

No, it’s not “fair”, or logical, or even makes much sense.

But once you realize that all human beings — according to proven neuroscience — make decisions on emotion and not logic… it makes all the sense in the world. And if you think you’re any different, think again, Chuckles.

Even the decision to be logical & rational is ultimately an emotional decision.