While reading newspapers on a plane, I discovered a winning business strategy: Selling Hope. The products you sell don’t have to work as advertised. They may or may not. That’s not the point. All you have to do is selling the hope that they will work.
There are plenty of examples for this strategy. Airborne is a popular vitamin and herb pack that allegedly helps people avoid common cold. Does it really work? I don’t know. Some say it does. Some seriously doubt it. The uncertainty didn’t prevent from it becoming popular though. It sells for about $1 per tablet while the regular multivitamin sells for 2-3 pennies per pill. Airborne does a good job selling the hope it will work.
Another example. Anti-wrinkle creams are much more expensive than regular moisturizers. Do they really work? I doubt it. But when you put it in a nice small container with an anti-wrinkle label, it starts selling at a much higher price. Nobody wants wrinkles, right?
Now we come to finance and investing. There are “systems” that claim to produce great results. The “systems” take many different shapes and forms. Some have you look at charts, for example Investools. Some have you screen financial ratios, for example, Magic Formula Investing. Do these really work? I don’t know. All I see is that people hope they work. All they have to sell is hope.
You think you were visionary because you got into Google’s IPO? Or are you kicking yourself for missing out on it? Stop, and look at this chart:
Hope springs eternal.
Refinance Your Mortgage
Mortgage rates hit new lows. I saw rates as low as 3.25% for 30-year fixed, 2.625% for 15-year fixed, with no points and low closing cost. Let banks compete for your loan. Get up to 5 offers at LendingTree.com.