Building a high-margin luxury brand is difficult, but building an enduring business around items priced under 50 cents is an order of magnitude harder. The companies that succeed develop defensive moats that software startups can only dream of.
The Inelasticity of Pocket Change
When an item costs less than loose change found in a coat pocket, consumers forgo traditional price comparison shopping. This psychological frictionlessness creates habit loops that can last for generations.
Written by Rohan Mehra
AuthorSenior Financial & Business Editor
Specialist in fintech rails, consumer retail micro-margins, and macro capital distribution across emerging markets.
Reader Responses (0)
No perspectives submitted yet. Be the first to add to this investigation.
