Brand name value in the long run

[WinkHPD]

Date: 1/19/2010 6:32:01 AM
Author: Serg

Date: 1/18/2010 11:22:55 AM
Author: Paul-Antwerp
I think that the discussion about brands is always tainted, because it is very difficult to define what a brand actually is.


I remember me discussing this at the first Diamond Cut Conference, where a speaker said that a true brand involves a brand-premium, in other words higher prices for the same product. As far as I am concerned, brands can also indicate lower pricing, for instance because of volume or other increased efficiencies in distribution. Then again, at that level, I must be disagreeing with traditional marketing-science.


When looking at the resale-value of a brand, one probably must consider two potential resale-situations. Some brands will guarantee a buyback-price, which is valuable as long as a brand exists. On the other hand, some brands may reach such epic notion, that the rarity of its product only increases its value after the brand ceases to exist. Consider Bugatti-cars as an example.


For many brands however, where the brand-value often is marketing-created, and thus involves the payment of a hefty brand-premium above the intrinsic value of the product, the potential loss in case of a private sale is indeed bigger.


In that way, I found the example of a Pricescope-buyer, who some years ago managed to get his branded diamond to be set by Cartier, interesting. If that diamond-brand reaches some level of recognition, that jewel might obtain a collectors-value because of its rarity.


All this gets me thinking about a weird thing: If I die in a car-accident tomorrow, would the remaining Infinity-stones maybe increase in value?


Sorry about my morbid thinking.


Live long,

re:On the other hand, some brands may reach such epic notion, that the rarity of its product only increases its value after the brand ceases to exist. Consider Bugatti-cars as an example.

Which company could Build old Bugatti car now? What could be price for such replica ?

How many companies will have technology to copy Infinity diamonds 20 years later ? ( I think what some companies could do it right now)

Cost of Human work is more and more higher ( specially for Art work) . Cost for human work is grooving much faster than cost for gold, diamonds and other commodities .

Real cost for current SuperIdeal diamonds can not be higher in 20 years ( if you account inflation for material cost) because CNC will easy produce exactly same or Even Better with minimum human time

Serg,

As usual you miss the point of Infinity.

Perhaps there are some companies that can match the physical expertise of cutting the Infinity Quality diamond, but none of them are currently offering the package of benefits that Paul offers, especially the 80% buy back. Marketing is more than just price and ability and the vendor support that Paul provides allows us to rise above the need to be the cheapest and allows us to be the best.

Wink