4min chapter

On Brand with ALF & Rory Sutherland cover image

A Slice of the Beauty Pie

On Brand with ALF & Rory Sutherland

CHAPTER

Do You Get More When You Pay More?

Despite standard economic theory, it can be surprisingly difficult To disrupt a market by being cheaper. L'Oreal's is the most genius line ever It is after genius, absolutely geniusYeah, which is the price quality heuristic Which, by the way, is kind of true In that you do get more when you pay more. What's extraordinary about it Is the multiplier, the more of diminishing returns, I suppose When you get to the top end. We all buy an eyeshadow crayon from a leading Italian lab And I could list 25 other brands That you can walk into self-ages And get exactly that same product For retailing for anywhere from 25 pounds To 65 pounds.

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