Marques Brownlee MKBHD explains the ladder strategy that companies use

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  • čas přidán 22. 12. 2022
  • MKBHD explains the ladder strategy and blows up the minds of Andrew Schulz and Akash on Flagrant. Mike probably knew because he likes tech and Al pretended that yeah no big deal as usual. haha, I love all four of them.
    Full podcast available on CZcams - • Marques Brownlee Revie...
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Komentáře • 4,3K

  • @inkblots
    @inkblots Před rokem +55943

    The "yeah" at the end was a "no, wtf are you talking about?"

    • @ItsNicolau
      @ItsNicolau Před rokem +1925

      Lmao so true

    • @technoidic_ash
      @technoidic_ash Před rokem +1979

      he's rethinking his life choices at that "yeah"

    • @karanpatel-ol5my
      @karanpatel-ol5my Před rokem +3834

      Popcorn at the movie is prime example of ladder stat. Not even joking…

    • @koalamusik
      @koalamusik Před rokem +45

      true🤣

    • @mrlebanon6055
      @mrlebanon6055 Před rokem +683

      @@karanpatel-ol5mynot really, the soda and popcorn choices are different, they use the middle item tactic or something, where they price 2 ridiculously high and one less high so you can think you are getting a steal on the less high one

  • @Blakelikesfood
    @Blakelikesfood Před rokem +4837

    And that's how I walked out with an 84" tv.

  • @xanderramos7269
    @xanderramos7269 Před rokem +1825

    So that explains why yesterday I went to buy a rice cooker and now I am absolutely loving this brand new 65" OLED TV.

    • @kevinyuksekol646
      @kevinyuksekol646 Před rokem +17

      😂😂😂😂😂

    • @monke-mk5
      @monke-mk5 Před rokem +69

      Rice must be looking real good on that screen😂

    • @h0vaK
      @h0vaK Před 11 měsíci +26

      The only explanation is that you went to costco.

    • @thedislikebutton1907
      @thedislikebutton1907 Před 10 měsíci +1

      Buy amd gpu, two in one

    • @foreverkingsteez4796
      @foreverkingsteez4796 Před 8 měsíci

      😂And now your sitting watching someone cook rice on TV and still haven't made any yourself

  • @ozhs2
    @ozhs2 Před rokem +3339

    Them realizing Apple is just a master at juicing their customers 18 years too late is the most hilarious thing

    • @captainprice2655
      @captainprice2655 Před rokem +86

      Apple is not a master they just understand ppl are greedy and stupid, no offense meant but it’s true. Ppl just got the newest version and then the next one barely comes out and ppl have no self control for stupid reasons like my friend has the knew one so I have to or just because of status

    • @-LowResDream
      @-LowResDream Před rokem +49

      @@captainprice2655 dont say no offense because apple consumers are well aware of how stupidly overpriced the items are but still buy it because it makes them “look cool” for some reason apple has become a social status for wealth despite anyone being able to get it but being smart enough to know it cost less than a fraction of its retail price to make.

    • @pseudomalandro
      @pseudomalandro Před rokem +2

      One thing is to know what they do, another thing is to know how they do it

    • @majilliscath9739
      @majilliscath9739 Před rokem +6

      The ignorance of a society that has raised on instant gratification and materialism.

    • @BraveNewWorld-1984
      @BraveNewWorld-1984 Před rokem +11

      ​@@-LowResDream when their "wealth status symbol" costs less than my Samsung. It's cute

  • @philosopherbme
    @philosopherbme Před rokem +4690

    Soda and Popcorn at the movies is a classic example of the decoy effect. Schulz wasn’t just bullshitting.

    • @SuperEpicRecon
      @SuperEpicRecon Před rokem +166

      Soda and popcorn at the movies is not an upsell, it's a cross sell

    • @HolographicSkux
      @HolographicSkux Před rokem +18

      .... no mate.

    • @lambdaman3228
      @lambdaman3228 Před rokem +477

      @@SuperEpicRecon They're not talking about getting a soda with the popcorn. They're talking about how the soda and popcorn come in small, medium, and large sizes. The small is usually 60% of the price of the large for only 40% of the contents. The result is that many people buy large sizes when they wouldn't normally.
      It's a ladder strategy.

    • @barrow_3490
      @barrow_3490 Před rokem +65

      @@lambdaman3228 yeah, most people in the comments missed his point.

    • @lambdaman3228
      @lambdaman3228 Před rokem +4

      @@SuperEpicRecon Hey, where you at?

  • @PNadav183
    @PNadav183 Před rokem +2877

    The amount of time where I went "Oh I should get an iPad", walked through that ladder and then ended up not getting an iPad because it ended up super expensive is quite frankly embarrassing.

    • @seanoleary3428
      @seanoleary3428 Před rokem +341

      You forced their plan to backfire. You should be proud 👍

    • @hussainbharmal5998
      @hussainbharmal5998 Před rokem +58

      We need more people like you!

    • @Ardious
      @Ardious Před rokem +36

      Same, had same exact scenario yesterday.

    • @steffenkawa8374
      @steffenkawa8374 Před rokem +43

      Buy one slight used or on sale. I got my ipad pro m1 for 600 bucks. I use much more then I thought.

    • @OmniKoneko
      @OmniKoneko Před rokem +6

      @@steffenkawa8374 I’ll do that 👍

  • @fussbrain9161
    @fussbrain9161 Před rokem +149

    “Idk how to phrase it” then perfectly phrases it

    • @JayDillDrums
      @JayDillDrums Před rokem +4

      He means how to like put the video together

  • @aafynusstudios.9769
    @aafynusstudios.9769 Před rokem +725

    This would never work on me. I’m broke as hell.

    • @Gazevedoking
      @Gazevedoking Před rokem +12

      know your pain bro

    • @JoshuaHults
      @JoshuaHults Před rokem +6

      No prob just finance it on the apple card lol

    • @christianspaay437
      @christianspaay437 Před rokem +11

      I know plenty of broke people who are convinced they need the shiny apple

    • @ValaHough
      @ValaHough Před rokem +5

      ​@@christianspaay437 true story

    • @fbiagent6744
      @fbiagent6744 Před rokem +1

      ​@christianspaay437 true I've seen people still on old iphone because they are scared of not having one

  • @Silveraxed
    @Silveraxed Před rokem +1879

    Not everyone will climb the whole ladder, but the idea is that it's setup to allow you to climb as high as possible before you buy something.

    • @Tenchi707
      @Tenchi707 Před rokem +14

      Many people will, like me, if I exist there's bajillion like me

    • @methoxeta
      @methoxeta Před rokem +1

      @@Tenchi707 huh

    • @darkest_eclipse8271
      @darkest_eclipse8271 Před rokem +14

      My father does this exactly. He looks at an item then sees an item for the same price but better, then pays the extra money above that item to get the top features.

    • @JosueMartins
      @JosueMartins Před rokem

      Screw spending money on something that does not give me money..

    • @bogward4330
      @bogward4330 Před rokem +1

      Personally, I like walking down the ladder.

  • @BlissOn47
    @BlissOn47 Před rokem +9349

    "It's soda and popcorn at the movies"
    Marques: My disappointment is immeasurable and my day is ruined

    • @verified_name
      @verified_name Před rokem +439

      No it makes sense. Say a small popcorn is $5, that’s good enough for most people but then the concessions person will upsell you to a medium for maybe $0.75 more. Suddenly a small doesn’t seem like a good deal but then you see a large popcorn is $1.25 more and then that seems like an even better deal than the medium you got sold into. It’s the slow increase in price that gives people the idea that something is better than the baseline.

    • @NuttyCuts_
      @NuttyCuts_ Před rokem +271

      @@verified_name yeah it seems some people have never been to the movies and don’t understand it lol, it was a perfect way to relate it to everyday life

    • @verified_name
      @verified_name Před rokem +79

      @@NuttyCuts_ Yeah some people just don’t seem to get analogies

    • @wrightclick
      @wrightclick Před rokem +33

      Apple fanboys are all simps who seem to truly believe that nothing else in the world existed before Apple thought of it, and apparently that includes absolutely basic sales strategies. 🤷🏻‍♂️

    • @jessem4659
      @jessem4659 Před rokem +39

      Popcorn pricing is a well defined sales tactic in any pricing model. Andrew was spitting consulting knowledge without the 7 figure cost.

  • @Fluffy7048
    @Fluffy7048 Před rokem +528

    This is called upselling and is a well described marketing strategy

    • @coldfire39
      @coldfire39 Před rokem +26

      Tell me you don’t know what upselling means without… y’all know the rest

    • @brandt003
      @brandt003 Před rokem +22

      ​@@coldfire39 Nah this is a form of upselling

    • @legoguru3000
      @legoguru3000 Před rokem

      We could call it a progressive upsell

    • @Weimerica8841
      @Weimerica8841 Před rokem

      ​@@coldfire39spend less time online

    • @JoshuaHults
      @JoshuaHults Před rokem +14

      This is upselling but done right, apple is not forcing anyone to buy their product, or to go up the ladder, but the way they price their products is genius for encouraging future proofers to put future proofing as main priority,

  • @ChristopherSibert
    @ChristopherSibert Před rokem +5

    I worked at movie theaters for years, "upselling" was a huge thing. "Are you sure you want the small, the large it literally 3 times more soda for only $1.50 more!"

  • @htkhattab
    @htkhattab Před rokem +8956

    Actually, despite everyone trashing andrew’s analogy at the end, soda and popcorn at the movies are great examples of price ladders. The large is usually only 2-3 dollars more expensive for way more size, and so they walk you up to buy larger sizes but giving you more perceived value for money

    • @Nazrin133
      @Nazrin133 Před rokem +390

      Yes! I agree. His comment was being so underappreciated by this comment section. It’s a little bit of a thinker you know. I’ve always been like this my whole life and at the end, the dudes that was questioning me at the begining begin to get his light bulb working at the end.

    • @manojlds
      @manojlds Před rokem +111

      It is, people just want to put down others while they climb the ladder thinking they are smart.

    • @ajaynagpal5975
      @ajaynagpal5975 Před rokem +16

      yeah there's actually a term for this marketing strategy i just don't remember it

    • @papuanewguinea7596
      @papuanewguinea7596 Před rokem +12

      Not to mention in a combo with a soda

    • @billkillernic
      @billkillernic Před rokem +6

      Instead of commenting them ppl should shit on that, I mean I wouldn't explain it like he did where apple seems to do something good but be more like "they dcare about giving you a solid well rounded product instead they give you shittier ones at a cheaper price point but still expensive considering how shitty they are so that you think that buying the top model will save you money and it does in a sense that you get less robbed in terms of value per buck but you still getting robbed" that's how every one of those """"Tech journalists"""" should convey this scheme to the public.

  • @ozzy_fromhell
    @ozzy_fromhell Před rokem +4751

    You guys will never know what I said

    • @hellras
      @hellras Před rokem +35

      Yeah + Nah... starting to agree but then realizing that's not the best comparison...

    • @jhgolf25
      @jhgolf25 Před rokem +7

      Wrong, Marques agrees entirely:
      czcams.com/video/iYeAWc1m08s/video.html
      @ 1.05.00

    • @hifriend7581
      @hifriend7581 Před rokem +3

      No it’s just one word. “No”

    • @Los47
      @Los47 Před rokem +2

      ​@@jhgolf25 it's not that deep

    • @jhgolf25
      @jhgolf25 Před rokem +7

      @@Los47 Ain't supposed to be deep. All I did was point out what actually transpired. When a video is fooling 2.5k people on one comment and 20k on another with the way they intentionally cut the video short right at "ya", it's misleading.

  • @ChicaneMedia
    @ChicaneMedia Před rokem +176

    Man just said apple consumers are stupid and he ain't wrong

    • @misirlou5179
      @misirlou5179 Před rokem +19

      all consumers of big name brands are dumb to be honest lol we’re all getting played by them

    • @wedaringu667
      @wedaringu667 Před rokem

      @@misirlou5179 Yeah... but no big name brands are as big as Apple. They aren't just an example of kleptocracy, they are the LEADING example of kleptocracy.

    • @ibendover4817
      @ibendover4817 Před rokem +2

      Meh, if you are a professional, especially a programmer nothing comes close to the dev experience on a mac.
      Iphone users on the other hand are dumb as shit yes. Used to work in a mobile store and the amount of apple customers with shitty credit history and debts still trying to get the most expensive models were mind boggling.

    • @rodrecus2279
      @rodrecus2279 Před rokem +2

      I have both iOS and samsung phones so I guess I am double stupid 😂😂!! But what really blows my mind about how stupid many samsung phone…… google phone users etc is that the majority of them have no idea that that Samsung doesn’t even own its own operating system like apple does. Samsung uses an android operating system. Apple has its own operating system. 🤯🤯🤯🤯

    • @TrumanFritz
      @TrumanFritz Před rokem

      Consumers arent stupid, these are just little tricks and hacks designed to market the right product based on how humans subconsciously think

  • @sheenbeans
    @sheenbeans Před rokem +5

    Apple really does treat storage like concessions at the movies

  • @SuperBizalz
    @SuperBizalz Před rokem +461

    That’s what car manufacturers do, with different trims and added packages within each trim.

    • @KCScorpion34
      @KCScorpion34 Před rokem +7

      I hate the auto industry for it too cuz literally some of the shit they don't make standard on base models is ridiculous.

    • @Sheijian
      @Sheijian Před rokem +3

      Just another reason to never buy a brand new car.

    • @ivordundic6095
      @ivordundic6095 Před rokem +1

      But I’d dare say the extra costs for things like a reverse-camera, sensors making your car brake automatically when approaching a car in front of you too fast, vibration in the steering wheel or automatic adjustment of the steering wheel when you’re crossing the driving lines are actually worth the money compared to a prettier edge-square on the iPad.
      Additional car packages actually have a function

    • @Jennerical
      @Jennerical Před rokem +2

      @@ivordundic6095 100% true. But go for a walk or something, kids, stay out the matrix :)

    • @shlongbongchewy
      @shlongbongchewy Před rokem

      If you are stretching your budget to buy a new car... you are dumb.

  • @LoverIsaDayy
    @LoverIsaDayy Před rokem +1180

    Lmao that end was funny but I think he means how movie theatres have sizes a few dollars more than the small sizes and theres the drink and candy sizes THEN there’s combos that end up convincing you and so you end up spending more money than you intented

    • @DeadEye1Gaming
      @DeadEye1Gaming Před rokem

      still stupid analogy trying to sound smart

    • @Lilquixx
      @Lilquixx Před rokem +51

      Exactly, wasn’t a bad analogy at all

    • @jseen9568
      @jseen9568 Před rokem +24

      Yeah idk why people are completely ignorant to this

    • @fdmugen4724
      @fdmugen4724 Před rokem +3

      ​@Jseen bc people are assuming it's about theaters having cheap tickets but expensive food.

    • @chris-cy5ed
      @chris-cy5ed Před rokem

      Sneak it in like its shopping bags they won't look 🤣🤣🤣 save 40$ then watch another movie afterwards so you got a free night

  • @nescionetizen295
    @nescionetizen295 Před 9 měsíci +3

    Boy just understood how business works for thousand of years.

  • @IAmYous3f
    @IAmYous3f Před rokem +14

    The popcorn at the movies is a perfect example. You want a small one gor like 6$ but for only 99 cents you get get medium or 2 dollars you can get a large, but then for 3 more dollars you get a popcorn and soda combo or for 5 dollars more you get a hot dog and popcorn and soda.
    To be honest i see how both can relate to each other situation

  • @xdmztryvsvedine2773
    @xdmztryvsvedine2773 Před rokem +2240

    Andrew killed whatever momentum they had in that conversation. Theater popcorn and drinks? Bruh what? 😂

    • @verlocitybrand2290
      @verlocitybrand2290 Před rokem +278

      the price of popcorn in movie theaters. they use the same method to get you to buy the bigger size

    • @Anto_07
      @Anto_07 Před rokem +27

      You need to see the bigger picture man.

    • @TheEchelon
      @TheEchelon Před rokem +79

      It's called decoy pricing. The analogy was spot on. Marques was the ignorant one here.

    • @jordan12118
      @jordan12118 Před rokem +69

      @@TheEchelon Marques didn’t even say anything Fam? Blame the comment section 😂

    • @bartek5078
      @bartek5078 Před rokem +3

      Marques used same analogy in his iPad Air video.

  • @Justin14379
    @Justin14379 Před rokem +13399

    Andrew at the end wtf you talking about bro haha
    Edit: Andrew is referencing a different analogy here. Marques was talking about they incentivise you to by more by allowing you to spend a little more for a lot more so you are then looking in that range of products. But if you buy popcorn per bucket, the more you spend the more popcorn you will get proportionate to the amount of money.

    • @jamesgraham3216
      @jamesgraham3216 Před rokem +668

      Guys just wants to be included with an intellectual conversation and fails miserably

    • @Godx69
      @Godx69 Před rokem +970

      Don't you guys know about
      Large popcorn
      Medium popcorn
      Small popcorn???!!!

    • @jamesgraham3216
      @jamesgraham3216 Před rokem +110

      @@Godx69 Yeh but popcorn is legit just adding sizes, what apple is doing is adding and subtracting meaning adding a more attractive design to push people to get it while subtracting the memory so people second guess purchase, as they where already willing to increase price from baseline at start they have a new baseline to increase to cooler design and is all about increasing their baseline to how much ur willing to spend. Popcorn is just popcorn

    • @Godx69
      @Godx69 Před rokem +344

      @@jamesgraham3216
      small size -1$- 100grams
      Medium- 1.35$- 150grams
      Large - 1.5$ - 200grams

    • @Godx69
      @Godx69 Před rokem +199

      @@jamesgraham3216 now they will either sell the small one or the large one no one is gonna buy medium one. That's exactly what apple does .

  • @TheYToLDSCHooL
    @TheYToLDSCHooL Před rokem +6

    That's me, trying to buy a usb drive. Started at 12 bucks, ended up paying 35

    • @aang2605
      @aang2605 Před rokem

      Ikr. Happened to me last week where I was supposed to buy the latest airpods ended up buying two airpod max thought It was good value

  • @ranjanbiswas3233
    @ranjanbiswas3233 Před rokem +1

    Damn he just explained consumerism.

  • @Nazrin133
    @Nazrin133 Před rokem +468

    The bro talking about popcorn at the movies comment is being so underappreciated. Gotta point

    • @kevinmutsinzi
      @kevinmutsinzi Před rokem +3

      That made no sense lol

    • @Nazrin133
      @Nazrin133 Před rokem +32

      @@kevinmutsinzi 2 u

    • @winggame008
      @winggame008 Před rokem +41

      @@kevinmutsinzi that’s why it works on you

    • @mauricio533
      @mauricio533 Před rokem +3

      @@kevinmutsinzi lol, not to you indeed.

    • @Eric-jk3oi
      @Eric-jk3oi Před rokem

      That boy is talking like easy did I spicy margarita baby God damn baby you never heard this. Rip ass and blow out the toilet. Oh shit

  • @Itsrazvinotrizvi
    @Itsrazvinotrizvi Před rokem +500

    Andrew got the Analogy perfectly right. The Theatre Popcorn Analogy is the famous for explaining Price Ladder.

    • @MasterMoose04
      @MasterMoose04 Před rokem +21

      MKBHD is saying Apple is subtle with it, but with food it’s pretty straight forward and one dimensional. The popcorn analogy isn’t famous at all, it’s just a basic food provider model. More money, more food. All Andrew did just inputted with the most basic and obvious form of a price ladder.
      A better analogy would be cars and the various trim lines. You want a trim A with leather seats for additional $1,000 or trim B with standard leather seats, electronics, sporty exterior for upmarket of $2,000.

    • @tylergaye5457
      @tylergaye5457 Před rokem +6

      ​@@MasterMoose04 How is Apple subtle about it?

    • @michaelmarquez6133
      @michaelmarquez6133 Před rokem

      Andrew should just shut up lol

    • @eternal60214
      @eternal60214 Před rokem +1

      Anytime you use food for an analogy. It's not a good analogy

    • @Xzsxztreiii
      @Xzsxztreiii Před rokem

      @@MasterMoose04 wrong obviously

  • @RayunM
    @RayunM Před 6 měsíci

    Marques is a tech guy first instead of a car guy and it shows. Car manufacturers have been doing this for years, DECADES even.

  • @EyeShadowQueenn
    @EyeShadowQueenn Před rokem

    I used to work for them. He is correct.

  • @raulrgarcia4562
    @raulrgarcia4562 Před rokem +498

    we need this man for tech tales

    • @rl4525
      @rl4525 Před rokem +18

      He should be a famous youtuber that does exactly that......

    • @dannysfavs4122
      @dannysfavs4122 Před rokem +3

      ​@@jhgolf25 Jealous people everywhere

    • @Takid246
      @Takid246 Před rokem

      ​@@rl4525 lol

  • @naib1616
    @naib1616 Před rokem +774

    Marques is too smart for them

    • @aquarius418
      @aquarius418 Před rokem +16

      not a special strategy, you can easily notice this when you shop for cars.

    • @wrightclick
      @wrightclick Před rokem +40

      Yes, Marques referencing a century old product marketing strategy. Stroke of genius. 🙄🙄🙄

    • @ITSNICKMELLO
      @ITSNICKMELLO Před rokem +8

      @@wrightclick he is definitely smarter than the other guy

    • @LeonardoDiax24
      @LeonardoDiax24 Před rokem

      @@wrightclick but it’s more relatable to Apple, very accurate

    • @humpty6838
      @humpty6838 Před rokem

      Imagine not having a sense of humor somehow being a indicator of intelligence. Maybe autism.

  • @dakotawilliams1680
    @dakotawilliams1680 Před rokem

    This is a psychological trick in UX called "Decoys". You make products that are close enough to the high end models in price so that people will go "Hm. That's only $150 more. I should probably just go ahead and get that one." They don't intended people to buy the middle product, it's just there to make the most expensive one seem less expensive than it actually is.

  • @Chosen-Ones-by-Satan
    @Chosen-Ones-by-Satan Před 10 měsíci +1

    *Remember this was only for the exception, not the average people who just goes to store and get any random one ◕⁠‿⁠◕*

  • @javieranglada83
    @javieranglada83 Před rokem +71

    The soda and popcorn example is also valid. Just like coffee shop cup sizes. Imagine small is $5, a medium is $7, and a large is $7.40. You'd look at those prices and think you're getting a great deal if you go for the large, since it is only $0.40 more. In fact, they're tricking you into buying a size you didn't want or need when you walked in.

    • @Blackfeet
      @Blackfeet Před rokem

      We know!

    • @drstaylit
      @drstaylit Před rokem +3

      @@Blackfeetapparently, half of the “intellectual” top comments don’t

    • @Blackfeet
      @Blackfeet Před rokem

      @@drstaylit like living in the twilight zone

  • @TyHamlet
    @TyHamlet Před rokem +74

    The business term is called “pull through”

    • @ChiquitaSpeaks
      @ChiquitaSpeaks Před rokem

      UpSelling?

    • @TyHamlet
      @TyHamlet Před rokem +3

      @@ChiquitaSpeaks Great question. Pull-through is designed into the product line to empower sales to upsell. When I worked at the Apple Store the “pull-through” built into product line-up helped us “up-sell” to customers.

  • @Swoncey
    @Swoncey Před rokem +49

    Yesterday I went to the store to get a new HDMI cable. Today I'm sitting here with a brand new gaming PC and a RTX 4090 Ti

  • @extramilk3255
    @extramilk3255 Před rokem +1

    I don’t how people don’t get how Soda and popcorn is the exact same ladder, you want a popcorn so you get the small one but then you see a slightly larger one for a few extra bucks and then you see the large one for a buck extra and thus you went up the ladder to buy really expensive popcorn for its costs.

  • @adamb7230
    @adamb7230 Před rokem +119

    This is such a painful reality. I never buy anything because I get to the top of the ladder and can't afford it but no way I'm climbing back down.

    • @khalifab4339
      @khalifab4339 Před rokem +2

      Same. I started buying Google products since the ladder usually just has two rungs.

    • @jinxtacy
      @jinxtacy Před rokem +2

      I sold car for a bit and my job was to figure out their budget and try to keep them there. They want the bigger car, higher trim, and different options, the numbers roll out and they hit you with the I'll think about it. They don't want to admit that they can't afford it and go to another dealership and ask for the exact spec car that you had started with before they started checking option packages. I thought it was financial knowledge initially, but I was running into the issue with accountants as well.

    • @runswithraptors
      @runswithraptors Před rokem

      Just don't be a stooge

    • @roshawn1111
      @roshawn1111 Před rokem

      Pride is the downfall of man

    • @roshawn1111
      @roshawn1111 Před rokem

      ​@Hagbard Celine not to mention it will have a bigger screen with HDR also

  • @iamshakes6672
    @iamshakes6672 Před 10 měsíci

    Apple - Yesterday's technology at tomorrow's prices...

  • @superstarr310
    @superstarr310 Před 8 měsíci

    Almost every big Corp in every industry does this. Cars, bikes, home techs

  • @nima1181
    @nima1181 Před rokem +132

    It’s called the art of the up-sell.

    • @aberwood
      @aberwood Před rokem +22

      It's called upselling. Enough with the 'art of' in the business world lmao

    • @MusicFromTheOm
      @MusicFromTheOm Před rokem

      No, it's called a shitty product. Why on earth would someone buy apple products, when they are always a bad version of a Samsung and more expensive?! It's been like this from the ipods times.

    • @megacoolgamer1158
      @megacoolgamer1158 Před rokem +7

      @@MusicFromTheOmthis tells me you don’t know tech

  • @hvip4
    @hvip4 Před rokem +35

    Love how he explained it so everyone in the room instantly gets it.
    No need to be a tech nerd to know that apple focuses more on marketing than their actual products.

    • @utubekullanicisi
      @utubekullanicisi Před rokem

      They focus on both, most people don't even climb up that ladder they're fine with buying the baseline product and the $330 iPad is actually not a bad deal, it makes more sense for a lot of people to buy that instead of an iPad Pro, in contrast to popcorn sizes which everyone is incentivized to buy the large one instead because that's the one that gives you the most bang for the buck.

  • @Mc007Queen
    @Mc007Queen Před 7 měsíci +1

    Yeah it's called bait-and-switch

  • @lach888c2
    @lach888c2 Před rokem

    For anyone buying an Apple product the best strategy is to get the cheapest model with the highest storage. Because they get you to buy new ones by continually increasing the size of the operating system until you fill up the storage which makes it run slower.

  • @ArtfullyEvergon
    @ArtfullyEvergon Před rokem +318

    This is called a Value ladder. Most companies have one, and their goal is to ascend you up it.

    • @coolinmac
      @coolinmac Před rokem +14

      HOLY SHIT WOW. ARE YOU SERIOUS. YOU JUST BLEW MY MIND. I HAD NO IDEA BEFORE THIS VIDEO LITERALLY EXPLAINED IT ANS THEN YOU PRETENDED YOU KNEW IT

    • @ArtfullyEvergon
      @ArtfullyEvergon Před rokem +7

      @Colin K I mean, I knew it before this video but he was just explaining it in lamens terms. He didnt actually specify the term in the video either, he just used an example. I actually learned it from Alex Hormozi a couple years ago, from his marketing videos. If you can fulfill the customer on any level of the ladder you have an ability to overarchingly control the niche your buisness is in, some customers will slowly walk up the ladder like discussed in this video, some buy the base products and stop, some go straight to the highest possibly priced item. Having a complete value ladder allows you to capture a larger percentage of the market, which is why Apple is so successful. You should eat a snickers, you're not yourself when you're hungry. 😋

    • @JenByte
      @JenByte Před rokem +2

      It's also called upselling

    • @throwaway3873
      @throwaway3873 Před rokem +3

      no shit, he just explained that

    • @lumbago8938
      @lumbago8938 Před rokem

      @@ArtfullyEvergondude just stop pretending to be smart you didn’t contribute anything meaningful to the video

  • @shubhamsingh-ll2mq
    @shubhamsingh-ll2mq Před rokem +85

    Its called Decoy effect

    • @NMEofdaST8
      @NMEofdaST8 Před rokem +3

      price decoy

    • @hurri90
      @hurri90 Před rokem

      Learned something from you today man. Thanks

    • @Tylercranberry
      @Tylercranberry Před 9 měsíci

      Not necessarily. I think that’s slightly different

  • @ibrahimzaheer6582
    @ibrahimzaheer6582 Před 8 měsíci +1

    “Yeah”
    “You think owning the world’s supply of tvs and monitors I’d go to the movies?”

  • @kylekoch7200
    @kylekoch7200 Před 7 měsíci

    What’s funny is that often the crappier product is just as expensive to make. There’s absolutely no need for it other than to push you to pay for the target model which is always the one in the middle. The top option is designed to be better but priced to make you feel like you actually got a good deal on the one they wanted you to buy.

  • @TheInternetIsDeadToMe
    @TheInternetIsDeadToMe Před rokem +75

    Apple designs a product lineup to upsell itself.

  • @user-id9pw7el8x
    @user-id9pw7el8x Před 8 měsíci

    That is called not setting a budget for a purchase

  • @Mirko____
    @Mirko____ Před rokem +16

    The trick to defeat the ladder is to know what you want beforehand and then only compare the prices between models with similar specs

  • @mikeruchington4882
    @mikeruchington4882 Před rokem +27

    It’s a psychological tactic called framing. You can search it up and the perfect example is actually popcorn sizes and prices at the movies lol.

    • @twei__
      @twei__ Před rokem +3

      That ain't framing tho. Framing would be the wording one would use to present something to you. Eg: "Look at this *beautiful* popcorn bucket" vs "Look at this *disgustang* popcorn bucket". In both the task is clear: look at the popcorn bucket, but the way you think about it was influenced by the framing.

    • @12thirtyfour
      @12thirtyfour Před rokem +1

      @@twei__ yep, this isn't framing, but the decoy effect (in marketing and possibly consumer psychology)

    • @coolinmac
      @coolinmac Před rokem

      You’re completely wrong 😂😂😂

    • @mikeruchington4882
      @mikeruchington4882 Před rokem

      @@coolinmac actually I attended Harvard Law then went to NYU for Greeko-classical literature meaning im proficient in communicating concepts and ideas. This is framing. I’d know. You clearly don’t.

    • @oliverbs0417
      @oliverbs0417 Před 7 měsíci

      @@twei__it kind of is with the word “Small” makes you think your not getting much for your value even if you are it’s all mental games, then medium makes you think it’s kind of basic then large makes you thing your getting a lot and then the prices build up to trick you then after that you get the deals and combos which can entice you more until you’ve spent double or triple what you originally were going to, the same thing apple does withe the features to entice you and then the slowly rising prices same concept slightly different methods that achieve the same outcome.

  • @MrJordanwain
    @MrJordanwain Před rokem +2

    This is so true. It’s impossible to buy an Apple product without stepping up the ladder.

  • @jorgesanchezese4759
    @jorgesanchezese4759 Před 8 měsíci +3

    Soda and popcorn at the movies made no sense

  • @chandravikramsingh633
    @chandravikramsingh633 Před rokem +2626

    Marquese explained with such detail and attention and then Andrew ended up with that.

    • @amitavamozumder73
      @amitavamozumder73 Před rokem +289

      andrew is right!!! they put small popcorn at 10 bucks but put medium at 12 and large at 14, so people be like oh it's only a little more let me get the bigger one.

    • @dazednotconfused1503
      @dazednotconfused1503 Před rokem +8

      @@amitavamozumder73 no

    • @0741921
      @0741921 Před rokem +103

      He's right though. What did he say wrong?

    • @de132
      @de132 Před rokem +60

      ​@@dazednotconfused1503 What do you mean, no?

    • @sR1k
      @sR1k Před rokem +42

      @@dazednotconfused1503 never been to the movies eh?

  • @rajadvamshi
    @rajadvamshi Před rokem +47

    He knows the ipad prices by heart??

    • @giri1478
      @giri1478 Před rokem +9

      Yes becoz he did the videos on them too 😁
      And this was older I believe 🤔

    • @thesurrealist7
      @thesurrealist7 Před rokem +33

      His job is basically tech, ipads are one of the most widely used pieces of tech. So it makes sense.

    • @MrWPS
      @MrWPS Před rokem

      @@thesurrealist7 It's not one of the most widely used tech. Apple sells 100 iPhones for every iPad.

    • @thesurrealist7
      @thesurrealist7 Před rokem +2

      @@MrWPS Iphones are phone, Ipads are tabs. They're both on top of things sold in each section. So it's very normal for a tech reviewer to know their pricing by heart

    • @leandroneconoelgara8620
      @leandroneconoelgara8620 Před rokem +2

      ​@@MrWPS it is. Although only in the tablet department. Most tablets you'll see are ipads

  • @stevensierra0824
    @stevensierra0824 Před rokem

    Companies have been using this marketing strategy for decades

  • @goat9295
    @goat9295 Před rokem

    I planned on just getting an iPhone XR and ended up getting the 12 because of this. NONE of us are immune to marketing tricks😭

  • @meks194
    @meks194 Před rokem +17

    So true. There are very few people with that self control to reel themselves back in

  • @abhinavyoutube
    @abhinavyoutube Před rokem +104

    This is sooo true. I was planning to buy an iPad Air 10.9” and it’s only available in 64GB or 256GB, but iPad Pro 11” is available in 128GB (which is my sweet spot) but it’s only $100 more than iPad Air 64GB .. so I might as well get iPad Pro … MB is soo right! Great observation!

    • @adrianpascal7129
      @adrianpascal7129 Před rokem +3

      I started at a MacBook Air, but I wanted more RAM and Storage, and it was just 100$ cheaper that the 13 Pro with the same characteristics, but that was 200$ cheaper than the base MacBook Pro 14, that already had the minimum requirements for me so I ended with the Pro 14😂😅

    • @kiwisorbet
      @kiwisorbet Před rokem

      The exact same thing happened for me! And the 120 Hz display was also sort of a dealbreaker that stopped me from just getting a Samsung Tab S7 FE for a fraction of the price

    • @d1gBR
      @d1gBR Před rokem

      Automotive industry does this for decades now… Apple didn’t invent the fuckin wheel.

  • @BraveNewWorld-1984
    @BraveNewWorld-1984 Před rokem +1

    Wait until everyone realizes that almost every company that makes more than one product does this.

  • @KBWrecker
    @KBWrecker Před rokem

    The trick is to learn to live with less storage and just by the highest performance model possible

  • @PolarbearYGT
    @PolarbearYGT Před rokem +53

    Man it's sad when storage and usb-c are the pulling factors that too at this price

    • @joemilone6
      @joemilone6 Před rokem +1

      It is crazy that it's a thing.

    • @zeroa69
      @zeroa69 Před rokem +1

      at least usnc soon is no longer optional for them they have to use it.

  • @leroymmm
    @leroymmm Před rokem +13

    Andrews comment about movies, popcorn sizes was literally the pioneer of this.

    • @babybirdhome
      @babybirdhome Před rokem

      To be fair, that’s because of the studios. Movie theaters make little to no money from showing a movie in its first 2 weeks - almost 100% of the ticket sales go back to the studio. After that two weeks, their take goes way up and they can start to make money showing the movie, but until then, they have to pay all their overhead, upkeep, maintenance, payroll, taxes, and buying the rights to show the movie all up front and only make money on selling those overpriced popcorn, sodas, and candy. That’s the biggest driver of why they’re so expensive. It’s the studios that are predatory.

  • @gamersthumbs4673
    @gamersthumbs4673 Před rokem

    Everyone seemed like they were NPC's while my boy was explaining Apple's fuckery..

  • @Ripen3
    @Ripen3 Před rokem

    The genius at the end tho

  • @albin9297
    @albin9297 Před rokem +60

    I was watching this interview and bro he is almost too smart for them, i see some of the stuff Marques says and it completely goes over their heads it’s crazy 😂😂

  • @artschiloyan9101
    @artschiloyan9101 Před rokem +17

    That comment in the end is gold 🤣👌 so true

  • @bryanciacco4181
    @bryanciacco4181 Před rokem +1

    So true this is why I'll never buy Apple products. They're too greedy. don't forget about the extras such as a charging brick, proprietary cable, no micro SD card etc.

  • @theblackbaron4119
    @theblackbaron4119 Před rokem

    It's the popcorn trick. Medium is just there to be close enough to large in price to manipulate you to get the biggest one, while not actually containing a lot more. Oldest sales trick

  • @KingKraxz
    @KingKraxz Před rokem +18

    Cars do this as well.
    Basic card = no android auto/car play, smaller screen, smaller wheels
    £5000+ extra just to get the car that has half the extras that you would like to have

  • @smansab59
    @smansab59 Před rokem +45

    The popcorn one tho. It's got some depth to it because of that value-for-money analogy they use to sell you the bigger pack.

    • @dread1262
      @dread1262 Před rokem +1

      I just buy whatever popcorn I want man.

  • @MG-nc5kh
    @MG-nc5kh Před 8 měsíci

    Its called a "Good, Better, Best" Sales model. It allows products to be accessible to a wide range of people with various ranges of income.

  • @FaithwalkerTodd
    @FaithwalkerTodd Před rokem

    I chose the $330 one because I knew that’s what Apple did not want.

  • @bernardomotard
    @bernardomotard Před rokem +2975

    Everyone dunkin on Andrew but dumbasses don't know about the popcorn upsell tactic done by movie theaters.
    Andrew is right, it's exactly the tactic Apple uses.

    • @wap300
      @wap300 Před rokem

      Yeah, it's called decoy pricing and one of its examples is popcorn in movie theatres.
      Andrew obviously is still an unbelievable dumbass, there's absolutely no doubt about that, but he did get that one association right.

    • @cbr7170
      @cbr7170 Před rokem +66

      No. Popcorn is an upsell, while Apple is essentially doing a tiered pricing model. An upsell would be having the option to add the Apple Pen while purchasing the iPad.

    • @de132
      @de132 Před rokem +105

      ​@@cbr7170 I respectfully disagree. For sake of argument, I am going to use AMC Theatres, a US based chain of cinemas, as an example with their two kinds of popcorn. There's the regular popcorn for $7.79 and the large size for $8.79. For 90% of people, the regular popcorn is enough (arguably too much imo). But the $8.79 is slightly larger, slightly better (tub vs. bag) and slightly more expensive. The value proposition by the business and the customer is identical, and you aren't being actively upsold, the value judgment is entirely with the customer in both cases.

    • @cbr7170
      @cbr7170 Před rokem +32

      @@de132 In that case I fully agree. I thought the point made was about upselling popcorn at the cinema. But if you're applying tiered pricing to the popcorn, then yes - you're correct.

    • @de132
      @de132 Před rokem +37

      @@cbr7170 Have a wonderful rest of your day, I appreciate you

  • @ShaneAck
    @ShaneAck Před rokem +32

    He's a really smart guy. Deserves every bit of success

    • @Jayo26
      @Jayo26 Před rokem +1

      Are u serious. Any grownup not understanding this scheme is either too rich to care or required to have a guardian at all times

    • @ShaneAck
      @ShaneAck Před rokem +2

      @@Jayo26 why so salty :( I’m out here trying to spread positivity

    • @Jayo26
      @Jayo26 Před rokem

      @@ShaneAck he reviews tech and is informed within because he networks. Bro I know ur smart enough to be as successful as him 1 day :)

  • @kovanova9409
    @kovanova9409 Před 8 měsíci +1

    The nerve they have to charge for as much storage they give is stupid

  • @jabeddh
    @jabeddh Před rokem +9

    Yes, so true. Not only just one product lineup, they even connected the ladder in the whole ecosystem!

  • @kaoru614khl
    @kaoru614khl Před rokem +7

    the f* with the pop corn? 😳

    • @legendofmaxi
      @legendofmaxi Před rokem

      Look up decoy pricing. Andrew is on point with the popcorn.

  • @someparts
    @someparts Před rokem

    Imagine if somebody told him about the good, better, best system used by Sears 70 years ago.

  • @semmoney5686
    @semmoney5686 Před 9 měsíci

    Same happens with cars. You get a baseline vw polo no options. Spend 1500 more get touchscreen info and electronic windows. Spend more 1600 get slight more HP power and also touchscreen, wired carplay and automatic instead of manual. Now spend another 2000 get even more HP, tinted windows, wireless Carplay and parking sensors. Spend 2k more. Get all from last version + digital cluster + parking senors and camera and upgraded audio too.

  • @papitasloup2119
    @papitasloup2119 Před rokem +116

    Andrew's instant analogy is surprisingly accurate for what Apple does

    • @QuadriviumNumbers
      @QuadriviumNumbers Před rokem +3

      it's called 'The decoy effect,' another way to scam the public.

    • @shanetaylor761
      @shanetaylor761 Před rokem

      Really i didn't get it lol. I don't see how movies making just as much money from over priced food is the same as charging an extra 100 for a shinier version. Same as how they their prices to try to get your to slowly buy more expensive products. That's nothing like popcorn and soda lol. It seems more close to how they bundle cable with the internet and your phone bill. You end up spending so much you feel like why not spend the extra 40 on cable. Then you're like it's only 20 more for the unlimited data. Then you're like it's only 10 more a month for hbo with this convenient offer they have going.

    • @CanadianBoardCrew
      @CanadianBoardCrew Před rokem +8

      No, it was an awful analogy

    • @brody6634
      @brody6634 Před rokem

      That's like saying "it's kind of like the hot chocolate at the ice skating rink" is what apple does...it's a bad analogy... Apple does not get you thru the door with a main event, and then try to sell you things that pair well with the main event for 5x too much... That's not the "ladder effect" he's describing. Car manufacturers do the "ladder effect" per example, but not movie theaters, or ice skateing rinks.

    • @benduggan3386
      @benduggan3386 Před rokem +3

      ​@@brody6634 he's not talking about the prices. The movies have nothing to do with the analogy. Mcdonalds do it also. He's describing the small medium and large drinks. Where the large is only slightly more expensive than medium

  • @benrichter3324
    @benrichter3324 Před rokem +7

    It’s hard to walk down that ladder, too. Once you get a Pro phone, going back and not having that telephoto lens for example just feels like a huge limitation

  • @marcelmajercik8374
    @marcelmajercik8374 Před rokem

    After watching 15 shorts I'm ready to watch the whole interview.

  • @castleofsong9620
    @castleofsong9620 Před rokem

    Almost every tech company does this in everything from tablets to cameras to home alarm systems. When you have a quantifiable performance stat people will always buy to highest level they can afford.

  • @taesang5664
    @taesang5664 Před rokem +5

    you know what’s worse? buying one at 64gb, realizing it’s not enough, and then having to buy another one with a higher memory 💀

    • @angelicsailor1st
      @angelicsailor1st Před rokem

      Yup that’s why I haven’t gotten one and the mark up from 64gb to i think it’s 200gb? Something? Is outrageous I’m getting one open box or lightly used and I still feel cheated MEMORY IS CHEAP WHY ARE WE PAYING FOR IT

    • @reginaldcampos5762
      @reginaldcampos5762 Před rokem

      *Storage. But memory is also an upsell.

  • @dianetandy1757
    @dianetandy1757 Před rokem +4

    Absolutely love how easily he said all this
    As a mum it’s a nightmare when not tech savvy and this line up faces you. All I want to do is the best for my daughter

    • @carck6442
      @carck6442 Před rokem

      best = most expensive, but she'll be satisfied for much less

  • @odoylerules4503
    @odoylerules4503 Před rokem

    comedians take a freshman marketing course

  • @Rugyyyy
    @Rugyyyy Před rokem

    Equivalent to someone buying a 3090 to play among us

  • @mrskye08
    @mrskye08 Před rokem +19

    That is why i create an excel file when looking for a particular gadget. So that all specs are clearly laid out and i put each scores and i use "priority" as my multiplier. Then see which is scored the highest. It's geeky but it's effective.
    Edit: price is also included in the excel so I won't get lost in track with this "ladder"

    • @BrentRWong242
      @BrentRWong242 Před rokem

      I do the same. Geeky or not, it's frees you from the "allure of the process" and let's you buy what you actually intend to buy.

    • @coolinmac
      @coolinmac Před rokem

      You’re ridiculous

    • @ryants1
      @ryants1 Před rokem +1

      Genius. I need to do this when building a car I’m going to try and buy

    • @doccock1662
      @doccock1662 Před rokem

      You got a template?

  • @moshnroll507
    @moshnroll507 Před rokem +12

    The soda and popcorn analogy is spot on 100%

    • @yoosh9034
      @yoosh9034 Před rokem +1

      Not really. Making the most expensive product only marginally more expensive than the less expensive option to make the customer feel as if that is the better deal (I.e., soda and popcorn marketing) is not what is being described here.

  • @LetsGoGetThem
    @LetsGoGetThem Před 10 měsíci +1

    Wait, are you telling me that Apple is scamming their customers? No... Tell me it aint so.

  • @hardboiledfrog
    @hardboiledfrog Před rokem +50

    When this happens to me, when I catch myself being walked up the ladder, it is just a sign to me that I don't actually know what I need, or that I don't know what my budget is.
    Its a sign for me to delay the purchase and clarify those things before proceeding

    • @aaronadair6043
      @aaronadair6043 Před rokem

      You only live once. Can’t take your money to the grave. Just buy the most expensive:) will save u a lot of hassle

  • @Dazlidorne
    @Dazlidorne Před rokem

    I did the same thing when I bought the Steam Deck. They have three versions. Base is $399. Middle is $529. Top is $649. They keep adding better features like more storage, faster storage, better screen. Yeah, I bought the $649 version.

  • @Jon-nk2lf
    @Jon-nk2lf Před rokem +3

    I think what Andrew meant was when getting soda and popcorn they often say for only a few cents more you could get the better item. In other words the prices are set similarly so that you end up spending more

  • @lilsnuff7987
    @lilsnuff7987 Před rokem +3

    “It’s soda and popcorn at the movies” 💀💀💀💀💀💀 wth, the whole conversation clearly went over his head.

  • @nolankun
    @nolankun Před rokem

    everything went well until popcorn and soda

  • @rdtheskald
    @rdtheskald Před rokem

    Just because you don't understand someone else's example don't mean they are bad, Andrew is a fine dude his example was good enough for ppl who think alike.

  • @inertia179
    @inertia179 Před rokem +8

    This is a sales's technique called "upselling." You gotta always distinguish between what you NEED and what you WANT to avoid falling into that hole

  • @athulunni
    @athulunni Před rokem +12

    No bro, that’s not even close like popcorn 🍿 at the movies 🎥

  • @TheBornnaked
    @TheBornnaked Před rokem +3104

    I love how he explained what he’s saying perfectly and Andrew comes in with a terrible analogy
    Edit: This comment attracted the dumbest people I’ve ever met on the internet. I’m just going to stop replying.
    Edit 2: Like uhhh popcorn and soda at the movies! 😃

    • @lmfffaaao
      @lmfffaaao Před rokem +39

      Ahh so the typical Schulz experience

    • @ZAK5678
      @ZAK5678 Před rokem +210

      It's a perfect analogy and exactly what happens when you go cinema

    • @TheBornnaked
      @TheBornnaked Před rokem +44

      @@ZAK5678 Movie theaters make their money from concessions because their overhead is huge and ticket prices don’t really cover it. How is that at all a good analogy for what Apple does? Lmao

    • @Michael-dj6pd
      @Michael-dj6pd Před rokem +84

      @@TheBornnaked because the way they price popcorn and soda is like this. you can get a small, medium and large popcorn, but the prices go up in the ladder system just like this, with and without soda.

    • @TheBornnaked
      @TheBornnaked Před rokem +18

      @@Michael-dj6pd that’s how everything works.