Transcription
Amazon Prime. This is where you pay £20 a year to get free next day delivery on all your purchases, at least in the UK.
And the economists simply looked at the success of this and they said, well, if it's so successful offering next day delivery, why don't Amazon give it free to everybody? Completely failing to understand the psychology that the exclusivity and price of the saving is precisely what gives it its psychological meaning.
If everybody can have a discount, it's not a very meaningful discount. If you get a discount through a friend who works at the shop, it's a very meaningful discount. The fact that you pay for this is actually what makes it work.
Anybody got one of these? You must admit to it. An espresso machine so successful they'll be buying Google in about 15 years time. The reason is if you had to buy fuel for your espresso machine in a jar like Nescafé, the actual price you pay would be equivalent to paying about £150 for a large jar of coffee and you would be unable to pay that. Because the coffee comes in little pods, your frame of reference is Starbucks and not Nescafé.