My First Million
The best business ideas come from noticing what's working and doing it better, faster, or for a different audience.
“luxury goods are the only area which is possible to make luxury margins”
What It Means
Only luxury categories allow for sustainable premium pricing well above cost
Why It Matters
Explains why luxury businesses can be more profitable than commodity businesses
When It's True
In categories where status, craftsmanship, or heritage create emotional value beyond function
When It's Risky
If market shifts to pure utility or competitors create better functional alternatives
How to Apply
Identify categories where luxury positioning is possible
Build brand story that justifies premium pricing
Maintain exclusivity while scaling
Example Scenario
“Premium skincare brand charging 10x more than drugstore equivalents by positioning around luxury experience and results”
Related Knowledge
Brand as Moat Strategy
Using brand power as a primary competitive moat instead of technology or network effects, particularly effective in luxury goods where perception drives value.
Correct Lesson Learning Framework
A systematic approach to evaluate whether someone is drawing the correct conclusions from their experiences, rather than just having experiences.
Service-to-Product Acquisition Strategy
Using profits from a service business to systematically acquire better businesses with recurring revenue and product characteristics.
Acquire and turn around distressed luxury brands
Transformed brand with luxury margins (75%+), global distribution, and sustainable competitive moat
Build trusted business relationships entirely through digital interactions
Trusted business partnerships conducting significant transactions without ever meeting in person
Diagnostic Authority Model
When you can diagnose a problem for someone, you gain more authority and sales leverage than if they already know they h