It could simply be what marketers call "prestige pricing". Back in the 90's When TAG Heuer raised the average price of their Swiss watches from $250 to $1000, sales volume went up 600%.
Value is always subjective. For luxury items this is even more apparent. In this case, putting an item next to (already) expensive ones tricks people into thinking that their position is a CONSEQUENCE of their great value - when actually the inverse is true. Nevertheless, rareness of black pearls certainly play a role in keeping the value high.
+LottLottie, +Paulo Batista I think you guys totally missed the point. The point is that THEY ARE NOT RARER. And whoever told you they were is an example of deceptive selling to the ignorant. You believed it though. And you probably bought it.
Is what you said about black pearls an example of a product "free-riding" on another gems' value? A jeweller once told me black pearls were more expensive because they were rarer than white ones. Same goes for gold pearls. I think most of the mainstream public understand your black-pearl-value-theory well when it comes to the entertainment industry, with "unknowns" piggybacking on other well-established actors' fame. I would definitely pay more for a black pearl! White ones are so common!
It could simply be what marketers call "prestige pricing".
Back in the 90's When TAG Heuer raised the average price of their Swiss watches from $250 to $1000, sales volume went up 600%.
Value is always subjective. For luxury items this is even more apparent.
In this case, putting an item next to (already) expensive ones tricks people into thinking that their position is a CONSEQUENCE of their great value - when actually the inverse is true.
Nevertheless, rareness of black pearls certainly play a role in keeping the value high.
the halo effect in action!
+LottLottie, +Paulo Batista I think you guys totally missed the point. The point is that THEY ARE NOT RARER. And whoever told you they were is an example of deceptive selling to the ignorant. You believed it though. And you probably bought it.
Is what you said about black pearls an example of a product "free-riding" on another gems' value? A jeweller once told me black pearls were more expensive because they were rarer than white ones. Same goes for gold pearls.
I think most of the mainstream public understand your black-pearl-value-theory well when it comes to the entertainment industry, with "unknowns" piggybacking on other well-established actors' fame. I would definitely pay more for a black pearl! White ones are so common!