I didn’t learn an awful lot in my high school economics
class. (Case in point: at the beginning of the recession panic, I raised my
hand and asked my teacher to explain what would probably happen with the
national debt over the next ten years. She said it was too complicated and not
to worry about it.) Mostly, we were told to not go into credit card debt. So
far, I’m doing pretty good on that one.
But there is one lesson that has still stuck with me. Even
though it wasn’t the lesson I was supposed to be learning.
One day, our teacher brought in a sack of food and asked for
volunteers for a demonstration. Food + high school students = an unlimited
number of volunteers. One lucky participant was chosen and blindfolded. Then he
was given two cookies, one generic and one Oreo brand. And so on, with products
like orange juice, crackers, and fruit snacks. Each time, the student was
supposed to raise his right or left hand to guess which product he thought was
the brand name one.
He guessed right about 50% of the time. And even then, he
admitted, “I’m just picking one. They taste exactly the same.”
Granted, this lesson on the relative unimportance of brand
names might have been lost on the saggy-pants volunteer wearing a shirt proudly
emblazoned with Abercrombie and Fitch, upping the cost about 400%, but the
point was supposed to be clear: you don’t have to pay more for a quality
product.
I say “supposed to be clear” because I learned a different
lesson: you can charge more for a product if you market it well.