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this is Louis Vuitton the most valuable
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luxury brand in the world each year it
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sells over $15 billion worth of products
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and leads the luxury fashion market with
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the highest profits than any of its
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competitors but what you don't see is
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how these billion dooll Brands Target
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the poor and not the rich and get inside
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their head using neuroscience and
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marketing to control the minds of the
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masses and today I'm in Beverly Hills to
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shop the top five luxury fashion brands
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in the world and expose exact ly how
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they do it and these are our covert
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mystery shopping glasses so we can get
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footage and expose the tactics that
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these companies are using firsthand in
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the store this is 10,400 this is 10,800
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and I'm also going to show you how to
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apply these same tactics to your own
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business to dramatically increase your
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profits if you don't know me I'm sa
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subie I'm an investor on Shark Tank I've
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generated $7.8 billion for my clients
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first up is Louis Vuitton so before we
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go into this store here are some of the
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tactics that they are known to deploy in
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store that I'm going to be keeping my
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eye out for so these Brands they go
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through the Most Extreme Measures to
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manufacture exclusivity their Limited
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stock that is all a fugazi do you really
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think that they don't have the funds to
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go out there and procure the goods to
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make enough to sell to the demand of
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course they do it is by Design they want
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to keep that stock low so that it
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increases the urgency for you to act now
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when they do have the invent in place
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and to make it more desirable in the
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first place so my bodyguards and I
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headed into Louis Vuitton to investigate
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I told them to pretend I was a
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billionaire shake from Dubai to see how
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these luxury Brands would treat me
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inside immediately we were met with our
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first
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challenge's this is all women's you're
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very close two blocks we went to the all
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women's store so we ventured over to the
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men's store to try and buy a passport
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wallet immediately we were assigned a
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personal shopper to show us around the
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store I found my wallet on display and
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what do you know they said that this
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specific item had insane demand and that
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it wasn't available at this store but I
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refused to give up so we drove 40
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minutes to another Louis store
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immediately we were greeted with another
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personal shopper I told them that I
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wanted a passport wallet and she
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immediately brought me to their Travel
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section here's where it gets juicy she
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mentioned that the wallet I was after
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was hard to come by and while she
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checked the back of the store she tried
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to sell me $1,000 pair of sunglasses as
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well as a $44,000 duffel bag they ended
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up having the wallet but somehow it was
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the last one in stock all right so we
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just cop some Louis V whatever it is
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that you choose that you want they
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validate that immediately that's our
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most popular we've only got one more of
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those in stock and it's by limiting this
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Supply do things become infinitely more
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desirable and why people laugh about it
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and they say oh that's so extreme the
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reason that they do it is because it
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works and it's not just the these huge
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massive luxury fashion brands think
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about some of your favorite Brands think
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about Apple for instance you can't just
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go in there and just buy their brand new
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products whenever you want it they only
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have a certain amount of inventory
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that's sent to each location and if you
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try to call up in advance and being like
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hey can I get this certain iPhone they
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say I don't know we get a certain bag
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sent to the store every day and we don't
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even know what they're going to send and
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it's the whole manufacturing of that
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exclusivity is what gets people to just
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rock up droves to buy their products
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next up is Dior the number two luxury
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fashion brand in the world these guys do
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over 11 billion in sales annually and
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they had this tote bag it's
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$3500 and it cost $57 to make and the
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internet is going completely wild about
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cost less than $60 to make a $5,000 bag
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so let's go on in and see what tactics
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it they're going to use on us so we went
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into Dior and immediately asked to see
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the $57 tote bag I couldn't believe that
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they sold these things for
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$3500 it's an Egyptian cotton it's and
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even though I don't think it was
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anything special I got to respect it
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because this is the very first thing
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that I do when a client wires me 50K I
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get on the phone with them and I tell
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them immediately straight out of the
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gate you need to double your prices
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because you want to be selling at a
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premium price point unless your business
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model is to be able to service the Entre
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entire market so nobody can possibly
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compete with you on price then operating
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at the lower end of the market is a
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Fool's errand and you do not want to
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play the race to the bottom because you
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never win all prices are made up when it
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comes to setting the price for your
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product the setting matters so you want
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to think about how do you actually
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present that product if it's a physical
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product what is the location that you've
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done the product photography what is it
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next to what are the models like what's
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the lighting what's the aesthetic what's
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the whole makeup what very few people
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understand is price priming and that is
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where you prime the prospect based on
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the association and the area and all the
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things that they are subjected to before
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you actually make your offer to them
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next up is Gucci everybody knows Gucci
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it's the loudest fashion brand that
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there is you got the Gucci belt the
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loafers the jumpsuits so your boy is
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about to go on him and get dripped out
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in that Gucci stuff let's see the
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tactics that these guys deploy we enter
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Gucci and the first thing that I noticed
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is the man at the door whose entire job
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is to let you through their Velvet Rope
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I let them know that I wanted to get as
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drippy as possible so they took me to
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the back of the store to all of the
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clothes they offered me nothing but the
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finest sparkling water and then I asked
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to try on one of their tracksuits they
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left me waiting for around 10 minutes my
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guess is that this was a tactic to get
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me to browse some more I looked at some
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of the shoes the the Gucci belts and
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then they called me to the changing room
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to try on the Gucci tracksuit and let me
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tell you this thing was ridiculous and
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the entire set cost somewhere around
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$5,000 you are definitely buying the
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brand and status with this one we seek
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social status from the schools that we
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go to to the places that we work to the
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type of clothes that we wear everybody
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wants to Signal a certain status and we
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all want to be perceived as being higher
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status than the people that we associate
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with a lot of business bus just sit down
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they think about all the features and
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the benefits of whatever it is that
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they've got to sell but they don't think
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about what buying their product
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represents from a status standpoint and
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what it signals or what type of status
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does it unlock if someone buys for you
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and if you think about these luxury
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Brands you are not buying the material
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you're not buying the cotton you're not
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buying all of those specific things yes
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they hop on about craftsmanship and
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quality but that is how they justify the
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sale that is not how they get you to buy
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in the first place it is an emotional
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sale they are selling you the status of
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having the big Gucci logo on your
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tracksuit because they know all the
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rappers and celebrities influences that
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it is what they're wearing and you want
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to be like them and therefore this is
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like a cheat code if you buy this you
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are going to be like them before we dive
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into what might be the craziest
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manipulation tactic I've seen from any
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retailer at Rolex I decided to play a
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little prank on the people over at
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balenciag these guys are known for their
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outof pocket designs like their $1,800
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leather chips bag and $4,000 tape
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bracelet so I asked to try on their
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biggest oversized hoodie and Kanye's
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favorite the oversized cck
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boots bro I almost lost it when you made
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them bring out those
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[ __ ] their products are so wild that
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there has to be some other reason as to
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why they're able to sell over $1.4
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billion a year they're masters of
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trolling the internet and consumers by
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using something called neuromarketing
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and neuromarketing is the way that
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scientists study how our brains interact
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with certain ideas objects and ads these
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big Brands they spend millions of
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dollars per year in this study and they
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use crazy technology like fmri to study
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the blood flow in people's brains when
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they're exposed to certain products and
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ads they also have all of these fake
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shops and supermarkets set up where they
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use eye tracking software to have a look
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at what happens to people's heart rates
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when they see certain products when they
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see certain ads and they interact with
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different store layout now I'm not
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saying that you need to go through these
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crazy lengths and use all this insane
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technology but what I will say is the
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very first thing that I do when I sit
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down and I write an ad or a vsl or craft
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an email is I think what is the emotion
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that I'm trying to elicit I don't think
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about how do I write this subject line
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or what's the hook going to be you first
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need to start from the place of like how
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you trying to make the prospect feel
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because all the masterful copy all you
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putting the features and benefits people
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don't remember that but they will
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remember how you make them feel all
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right here we are out the front of
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Chanel it is the fourth ranked luxury
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brand in the world let's go on in and
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see what it's all about inside of Chanel
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I asked to see their most popular item
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the classic chenel bag and of course
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they tried to use the exclusivity of
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these bags against me c your Gold
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Hardware this is 10,400 this is
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10,800 claiming that it was a limit of
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one per customer when I asked to
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purchase three of them for my daughters
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a few minutes later and they let me know
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that miraculously that they happened to
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find three of these exact bags that I
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was looking for in stock and they told
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me that I would actually be able to buy
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all three of them because I had me and
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my two bodyguards but one thing that I
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noticed about Chanel that stands out
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from all the other luxury Brands is just
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how heavy they lean into their feminine
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and timeless style everything they do
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from the way the hostess greets you the
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lighting in the store the products
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themselves all radiate the same energy
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they want to link an association with an
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idea or a feeling with their brand and
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it's the same thing with how Volvo pairs
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their brand with security and safety or
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Nike with determination and apple with
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Simplicity it is simply a link between
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an idea and a concept to their brand and
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they keep keep hammering it in all their
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communication until that link is formed
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and it's the very same reason that these
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Brands spend millions and millions of
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dollars a year on influencers they're
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taking a relationship that that
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influencer already has and they're
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flipping that relationship to have that
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Association and that brand liking to
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their brand to make more sales so you
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want to zoom out and you want to think
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ultimately what is that linking that I
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am trying to form with my brand and now
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Rolex it is the fifth ranked luxury
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fashion brand in the world these guys do
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over
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$10.1 billion in sales annually
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everybody knows it is almost impossible
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to get a Rolex I have been all over the
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world searching for a Time piece and I
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cannot find it going in I'm going to try
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my hardest to get a watch for wifey but
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the thing is it's almost impossible to
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actually buy a Rolex at the store that
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is because they actually don't hold
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anything for sale I went in with the
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exact watch that I wanted in mine and
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they said that it was not available to
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purchase but they would take down my
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phone number and call me when it was in
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stock what what female watches do you
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have install today I only have
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exhibition I don't anything for sale
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today what about it men's again I don't
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have any there no watches at all for
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sale everything is exhibition they claim
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that it's because their watches are in
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such high demand that they are unable to
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keep up any inventory in store but this
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is just all a fugazi to sell the
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exclusivity of the brand they've learned
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that they are way more more profitable
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by selling the weight list than actual
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watches but how are they able to justify
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such a premium price tag if they won't
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even sell you in store the whole idea of
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charging premium prices is typically an
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idea that most business owners can get
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around but the thing that they don't
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like to think about is what type of
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servers would they need to provide in
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order to justify that premium price tag
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because you can't just go oh that sounds
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great suby let me just charge double
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triple for what it is that I've got
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right now because a transaction takes
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place where value exceeds price and what
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I have found from having thousands of
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clients all over the world providing an
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incredible customer experience is made
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up by having a lot of little things that
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you do all throughout that client
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Journey that adds up to the overall
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experience that it is that they provide
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and that's exactly how these luxury
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Brands operate they know exactly who
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your name is what items that it is that
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you bought in the past because that is
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the only way that you can actually get
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the products that you want to buy in the
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first place they're not in there to sell
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you one bag or one belt they want you
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buying off them repeatedly and forever
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and that's how they make these obscenely
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high profits so there's the strategies
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to dramatically increase your profits
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like subscribe and I'll see you in the
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next one
