Ben Gilbert: uncertainty

Transcript context

…Totally. Okay, scale economies, check. Done. There’s a thing I want to bring up with you, and this has been a debate in the acquired Slack, I don’t know if you’ve seen it at all, around branding. The classic definition of branding, and I need to reread Seven Powers to refresh myself on this, but the idea is if I show you two products side by side that are identical but one is branded, will you pay me more money for the one with the better brand, the Tiffany ring versus the unbranded ring? I think there’s another way that branding shows up. We said that IKEA doesn’t have brand power in the last episode. That’s obviously not true. It might be technically true in that they don’t take margin, but they have to deploy their brand power in another way. In the same way that Mars, I don’t think, charges more for a Snickers than a different candy bar. Mars doesn’t take price in the form of brand, but they do something else. There’s brand power here for sure. Consumers pick Snickers over unbranded, random, unsafe, untrusted candy bars. Definitely. I think it’s got to be a version of our Costco episode, scale economy is shared, brand power is shared.…

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