Ferrari rejects 99% of potential buyers.

Yet, they generated $6 billion in revenue last year alone.

How? This is not what you think!

Here is Enzo's genius behind Ferrari’s massive profits:🧵 Ferrari perfectly uses the "Veblen effect".

A principle whereby demand for a product increases as its price rises.

This defies the ordinary "law of supply and demand."

Ferrari has mastered Veblen so well that it can tap further into the 6 psychological biases behind it...

This is Mar-a-Lago

An expensive 126-room mansion nobody wanted.

Until Trump made a genius stunt that turned a money sink into a world-class cash cow.

Here's the story of Mar-a-Lago, the Winter White House:🧵 In 1924, Marjorie Merriweather Post, heiress to the Postum Cereal Company fortune, purchased a property in Palm Beach, Florida.

She was one of America's wealthiest women and wanted to build a winter residence.

The estate cost her $7 million ($120 million today)

Netflix didn't just kill Blockbuster.

They exploited their biggest weakness:

In 2000 alone, Blockbuster made $800M from late fees,... and customers HATED them.

Here's what happened next...🧵 Netflix moved to $15.95 monthly subscription for DVDs rental in 1999

However, by 2000, Netflix was still a tiny competitor in the DVD-by-Mail service market

Then they launched their UNLIMITED rentals for $19.99.

They weren't just selling convenience but psychological freedom: