Pricing and scarcity
Notes and perspectives from the Value Proposition Studio.
Notes from the studio.
01 / Pricing and scarcity
Pricing and scarcity · Sep 20, 2026
Supreme: two owners in four years, and the arithmetic of selling scarcity
VF Corporation bought Supreme for 2.1 billion dollars in 2020 and sold it to EssilorLuxottica for 1.5 billion in 2024. A case on why a brand whose product is the drop resists the growth plans that make acquisitions pay.
Read articlePremise, promise, proof · Sep 13, 2026
Blockbuster earned millions from late fees and paid for them with its promise
In 2000 Blockbuster collected about 800 million dollars in late fees and turned down the chance to buy Netflix for 50 million. A case on a revenue line that worked against the promise it was meant to serve.
Pricing and scarcity · Aug 25, 2026
Labubu: Pop Mart made the rare thing easy to get, and the value left
Pop Mart scaled Labubu production a hundredfold and watched resale prices halve. A case on scarcity as the product, and why adding supply can destroy the value it was meant to serve.
Pricing and scarcity · Aug 12, 2026
The Hermès Birkin: when the wait is part of what you buy
Hermès has never sold the Birkin like an ordinary bag, and in 2024 a US lawsuit described its allocation as a requirement to buy other products first. A case on scarcity as the product and the price of access.
Supreme: two owners in four years, and the arithmetic of selling scarcity
VF Corporation bought Supreme for 2.1 billion dollars in 2020 and sold it to EssilorLuxottica for 1.5 billion in 2024. A case on why a brand whose product is the drop resists the growth plans that make acquisitions pay.
Pricing and scarcity · Portfolio and rhyming · Moat · In the news
Read articleBlockbuster earned millions from late fees and paid for them with its promise
In 2000 Blockbuster collected about 800 million dollars in late fees and turned down the chance to buy Netflix for 50 million. A case on a revenue line that worked against the promise it was meant to serve.
Premise, promise, proof · Pricing and scarcity · Autopsy · Brand history
Read articleLabubu: Pop Mart made the rare thing easy to get, and the value left
Pop Mart scaled Labubu production a hundredfold and watched resale prices halve. A case on scarcity as the product, and why adding supply can destroy the value it was meant to serve.
Pricing and scarcity · Autopsy · Core values · In the news
Read articleThe Hermès Birkin: when the wait is part of what you buy
Hermès has never sold the Birkin like an ordinary bag, and in 2024 a US lawsuit described its allocation as a requirement to buy other products first. A case on scarcity as the product and the price of access.
Pricing and scarcity · Moat · In the news
Read articleMicrosoft sold the same assets three times: as licences, as subscriptions, as cloud
Windows and Office became Microsoft 365, the servers became Azure, and since 2023 Copilot is sold across all of it. In fiscal 2026 Azure passed 100 billion dollars of revenue. A case on a portfolio that climbs, and on the launches that had nothing to climb from.
Portfolio and rhyming · Pricing and scarcity · In the news
Read articleSouthwest made free bags a promise, then started charging for them
In March 2025 Southwest Airlines announced fees for checked bags after years of advertising that they flew free, and in January 2026 it ended open seating. A case on what a brand loses when the promise it breaks was also its proof.
Premise, promise, proof · Core values · Pricing and scarcity · In the news
Read articleCostco: a membership card as the premise, a hot dog as the proof
Costco charges people for the right to shop, and has kept its hot dog and soda at 1.50 dollars since 1985. A case on a premise customers pay to accept, and on a proof anyone can check at the exit.
Pricing and scarcity · Positioning · Premise, promise, proof · Brand history
Read articleA Diamond Is Forever: De Beers designed a category, and lab-grown stones are testing it
In 1947 four words tied the diamond to the engagement ring. Seventy years later a machine can grow the same stone. A case on category design and on a value that depends on a story.
Category design · Pricing and scarcity · Brand history
Read articleMagnum: the stick ice cream that changed who it was for
In 1989 Unilever put a thick Belgian chocolate shell on an ice cream on a stick and sold it to adults. A case on perceived benefits, willingness to pay and the category that followed.
Pricing and scarcity · Category design · Brand history
Read articleNetflix ended free password sharing and had its best year since 2020
In 2023 Netflix began charging for accounts shared outside the household, against widespread predictions of a backlash, and added about 29.5 million subscribers that year. A case on pricing and on what customers were really paying for.
Pricing and scarcity · Positioning · In the news
Read articleMcDonald's has changed for fifty years, one value at a time
Calorie counts, espresso, fresh beef and a return to the value meal: McDonald's has added values under pressure without dropping the ones its customers came for. A case on how values evolve over long horizons.
Core values · Pricing and scarcity · Brand history
Read articleRyanair tells some customers no, and fills its planes with the rest
Ryanair has never pretended to offer comfort: a low fare, a paid extra for everything else, and a social media voice that teases its own passengers. A case on the premise as a business model, and on how far a premise can be stretched.
Positioning · Premise, promise, proof · Pricing and scarcity
Read articleFerrari builds one car fewer than the market wants, and the wait is part of the car
Ferrari has kept supply below demand for decades, with waiting lists and limited series offered to buyers chosen by their history with the brand. A case on scarcity as part of the promise, and on a moat made of time.
Moat · Pricing and scarcity · Premise, promise, proof · Brand history
Read articleDubai chocolate: a category born on TikTok, and who gets to own it
A small Dubai chocolatier made a pistachio and kataifi bar, the internet named it after a city, and within a year the big chocolate makers were selling their own. A case on who owns a category born on social media, and scarcity as the product.
Category design · Pricing and scarcity · In the news
Read articleYETI: a cooler priced like equipment, built for the guide and bought by everyone
Two Texan brothers took the cheapest object on a fishing trip and priced it like equipment. A case on a premise written for a few serious users, and on what stays defensible once the design is copied.
Positioning · Pricing and scarcity · Moat · Brand history
Read articleIKEA's flat pack: when the customer's effort is part of the price and the value
IKEA has shipped furniture in flat boxes since the 1950s and asks customers to build it themselves. A case on effort as part of the value proposition, and on what researchers named the IKEA effect.
Pricing and scarcity · Positioning · Brand history
Read articleHäagen-Dazs: a Bronx ice cream with an invented Danish name
In 1960 Reuben and Rose Mattus gave their dense, expensive ice cream a name that means nothing in any language and sounded like Scandinavia. A case on borrowing a value from elsewhere, and on the product work that made it the brand's own.
Positioning · Pricing and scarcity · Brand history
Read articleErewhon: the 20 dollar smoothie that proves what it promises
A Los Angeles grocer sells celebrity smoothies at around 20 dollars and people film themselves buying them. A case on price as proof of a promise, and on where Erewhon sits on the Promise Ladder.
Pricing and scarcity · Premise, promise, proof · In the news
Read articleDollar Shave Club changed how razors are sold, and the category followed
A 2012 video, a monthly subscription and a one-dollar price took on Gillette's hold on the razor market. Unilever bought the company in 2016 and sold a majority stake in 2023. A case on a channel and a price that became the category's premise.
Channels · Pricing and scarcity · Category design · Brand history
Read article- 01Supreme: two owners in four years, and the arithmetic of selling scarcityPricing and scarcity
- 02Blockbuster earned millions from late fees and paid for them with its promisePremise, promise, proof
- 03Labubu: Pop Mart made the rare thing easy to get, and the value leftPricing and scarcity
- 04The Hermès Birkin: when the wait is part of what you buyPricing and scarcity
- 05Microsoft sold the same assets three times: as licences, as subscriptions, as cloudPortfolio and rhyming
- 06Southwest made free bags a promise, then started charging for themPremise, promise, proof
- 07Costco: a membership card as the premise, a hot dog as the proofPricing and scarcity
- 08A Diamond Is Forever: De Beers designed a category, and lab-grown stones are testing itCategory design
- 09Magnum: the stick ice cream that changed who it was forPricing and scarcity
- 10Netflix ended free password sharing and had its best year since 2020Pricing and scarcity
- 11McDonald's has changed for fifty years, one value at a timeCore values
- 12Ryanair tells some customers no, and fills its planes with the restPositioning
- 13Ferrari builds one car fewer than the market wants, and the wait is part of the carMoat
- 14Dubai chocolate: a category born on TikTok, and who gets to own itCategory design
- 15YETI: a cooler priced like equipment, built for the guide and bought by everyonePositioning
- 16IKEA's flat pack: when the customer's effort is part of the price and the valuePricing and scarcity
- 17Häagen-Dazs: a Bronx ice cream with an invented Danish namePositioning
- 18Erewhon: the 20 dollar smoothie that proves what it promisesPricing and scarcity
- 19Dollar Shave Club changed how razors are sold, and the category followedChannels