- Profit Snack
- Posts
- š° America's Only Monopoly
š° America's Only Monopoly
The truth behind one of America's wealthiest families.
Youāve been lied to.
At least, I know I have.
I just found out that diamonds are worth nothing.
So why do couples spend months of their salary to buy a wedding ring?
Iāll get to that.
Itās all because of one marketing company.
Today, Iāll show you how they changed our culture, and how you can use similar strategies to do the same.
Because if this Redbull article taught us anything, itās that you donāt need a great product if you know how to market.
Hereās whatās on the menu:
š§ Limit Supply Until They Cry
š¤ Our Business, Is Love
š Create Undeniable Proof
š§ Limit Supply Until They Cry
De Beers is the worldās largest diamond supplier owning up to 80% of the market. They became one of the largest monopolies because they gained complete control over the diamond market.
In 3 simple steps, hereās how they did it:
1/ Massive diamond mines were found in South Africa. Making the diamond virtually worthless. But, De Beers bought most of them. This gave them control over almost every mine in South Africa.
2/ De Beers founded Diamond Trading Co. which became the gatekeeper that decided who could and could not buy diamonds.
3/ When prices of diamonds were low, De Beers would stockpile them to decrease supply and vice versa.
This gave De Beers complete control over the supply and price of diamonds.
De Beers was able to eliminate any competition leaving the only option to accept the prices given by De Beers.
Now I donāt support you creating a monopoly, but thereās a lesson to be learned here.
Itās important that YOU are the #1 place your ideal customers go to for your service.
You will need to offer more value and support than your competition.
So how did they convince the American public to spend thousands on a worthless rock?
š¤ Brought To You By Zupyak
Try the first search-optimized AI writer 30 days for free!
Zupyak has launched the 1st A.I writer to integrate search data into A.I writer workflows.
Donāt spend hours using complicated and expensive SEO tools.
Let Zupyak write your SEO-optimized content in seconds using A.I - No SEO knowledge needed!
Or as Peter, a Zupyak customer puts it:
"Better than other AI writersā¦it combines the best of AI and SEOā
Use the code SYNTHETIC for your 30 day free trial on Zupyak.com!
š¤ Our Business, Is Love
In the 1800s, a diamond was just a worthless pretty rock.
De Beerās plan was to attach emotion to the meaning behind diamonds.
Whatās something everyone can get behind?
Love.
De Beerās launched the āA Diamond Is Foreverā campaign. It was a campaign that tied diamond rings to proposals and āeverlasting love.ā
It was an instant sensation.
By the 1930s, diamonds had become a staple for engagement rings.
But since people only need engagement rings ideally once in a lifetime, De Beers also created:
The Right-Hand Ring for women to symbolize independence and strength
The Trilogy Ring represents the wearerās relationship with their past, present, and future
The Strategy - Symbolic Marketing
De Beers used a strategy called āSymbolic Marketingā.
They made diamonds proof of love. No diamond? No love.
The more glorified the diamond became, the more they could charge. De Beerās price was never based on the diamond. It was based on the buyerās love.
De Beers even had the ātwo-month salary ruleā meaning buyers should spend two monthsā salary on an engagement ring.
The best way to create lifelong customers is to āunite with a social mission.ā
Communities love to become a part of something bigger than themselves. So become that for them.
Example: At Profit Snack our mission is to help entrepreneurs build something theyāre proud of.
Most people believe in our mission too, and are willing to go the extra mile to support us.
Now for the next questionā¦
How do you get your product into the hands of your customers?
Itās simple. Undeniable proof.
š Create Undeniable Proof
Once you have a good message and no competition, itās time to get the word out there. But itās important to pay attention to who your product is associated with.
De Beers began a campaign to give diamonds out to celebrities and movie directors. Specifically, celebrities who were high-class, well-respected, and most of all romantic.
All over the world, diamonds began to show up in romcoms and royal weddings.
The Strategy:
People buy based on two factors:
1/ If the product accurately represents the person the customer wants to be
2/ If the benefit outweighs the costs
This is called the Law of Association.
By using specific celebrities, De Beers hit two birds with one stone: Attention and social proof.
If it was good enough for a multi-millionaireās fiance, it was good enough for everyone else.
How this looks in 2023: Influencers.
Find the YouTubers and TikTokers that your ideal customers watch. Then offer them affiliate deals, set up cross promos, or sponsor their content.
What'd you think of today's edition? |
Reply