How The World’s RICHEST Man Made His Money

Bernardino became the richest man in the World and what's crazy is he only sells To one percent of the population you may Not have heard of Bernardino but I Guarantee you've heard of his companies Louis Vuitton Christian Dior Celine Sephora DKNY Bulgari Givenchy Tiffany Hennessy Marc Jacob while the tech Billionaires and everyone's net worth Have plummeted Elon Musk lost 200 Billion dollars Bezos lost 70. he only Lost seven his business model is Recession Proof the man who's selling Ten thousand dollar purses there are Some lessons that we can learn from the Richest man in the world so the first Thing we have to understand is the Psychology of the rich versus the Psychology of the poor the first Encounter I had with like super wealth I Remember I was working at Smoothie King I was a blender tender one of my buddies He's in the back with his feet up he's Flipping through a magazine he's like Dude check this out this guy bought a 50 000 Burger man that's crazy who would Spend fifty thousand dollars on a burger I thought about it more and more if I go And get lunch it cost me 12 bucks for The burger the fries and the coke Whatever he had said it was some Finance Guy who had made like 100 dollars that Year if he made 100 million dollars and He worked 2 000 hours he made fifty

Thousand dollars an hour I was making Seven dollars an hour and my burger cost Me 12 bucks his fifty thousand dollar Burger was cheaper for him for his Amount of money that he was making than My twelve dollar lunch was for me that Was a huge shift for me where I realized I'm playing this game wrong and I'm not Empathizing with the rich because he's Got to be thinking differently than I am To be able to afford a fifty thousand Dollar burger it also kind of makes Sense for him the second is how we Create products that specifically serve Rich people they think differently and Want different things the best thing to Do is study luxury Brands when you shop At a high-end store they'll offer you Champagne while you shop you're going to Have somebody who's assigned to you the Moment you walk in the door what can I Get for you they can have and deliver That better experience because of the Premium and luxury prices they charge if You've ever been to a luxury mall and You see a purse for ten thousand dollars And you see a jacket for fifty thousand Dollars and I would urge you to not say Those people are ridiculous I can't Believe someone would spend money on That what I want you to do is actually Empathize with the buyer what kind of Person would spend fifty thousand Dollars on a jacket if I can pick from

All jackets and I have so much money That the difference between a hundred Dollar jacket and a 50 000 jacket in Relative terms is a ten dollar Difference to me and my wealth then I Just want the best jacket Bernard or no Capitalized on this so there's four Distinct positions you can have in any Marketplace you can have bargain which Is the absolute cheapest one poor Quality poor experience the next is best Value this is the difference between a Walmart and a Target Target is better Value it's got brighter lights it's Cleaner it's the best value for the buck The third position the marketplace is Premium the high-end Lexus the BMW and Then the fourth position in the Marketplace is luxury where the price Has no cap part of the value of the Product itself is the cost that people Know you paid to get it Bernardino lives In this luxury bubble it's where people Associate their status with the purchase They made typically when you raise Prices you decrease volume but in luxury Goods when you raise prices you increase How many you sell and that creates this Unbelievable amount of profit which is What has now propelled him to be the Single richest man in the world rich People have the same problems that poor People do they just want them solved Differently the big thing we want is we

Want to deliver a big dream outcome Number two we want them to believe with Very high confidence that if they work With us they're going to get what we Promised on the bottom side they want it To be incredibly fast so as soon as they Pay they want to get and then they want To have as little effort and sacrifice Assumingly possible and with the rich Speed and convenience are Paramount the Money is never an issue it's how much Are you going to ask of my time and how Painful are you going to make this for Me A buddy of mine only Services Fortune 100 companies and he manages right now 1.2 billion dollars a year in Advertising budget and here's what's Crazy his advertising agency actually Has to front the ad spend if they say Hey for this month in December I needed To drop 300 million on Facebook ads he Has to front the 300 million but the Thing is is that he has to do it that Way because he needs to be as easy as Humanly possible so he actually has to Have a revolving credit line in the Billions with a bank he charges six Percent of all advertising dollars so When they drop 300 million he gets six Percent not bad he gets 18 million bucks Just for fronting the cash rich people Will always pay for Speed the easiest Way to appeal to the rich is just do the Same thing in half the time whatever the

Service is if it's dry cleaning return It by end of day if you only have a Phone number be the person that can Accept anything if they email you shoot You a text if they WhatsApp you if they Phone call you can accept anything Because you've made it convenient they Just want it to be effortless the third Is if we know what products and services They want how to price those things Appropriately when you solve rich people Problems you get to charge rich people Prices when you deal with rich people You have unlimited upside which is why They are better customers there's five Things I want to talk about from the Customer's perspective because if you Increase the quality of your customers You increase the quality of your Business number one when you charge more Money for your products or Services you Get an increased emotional investment if You have a very low cost item people Won't even give it the time of day and So when you raise the price you raise Their emotional investment and in a real Way you actually increase the likelihood That they get results the second way That it'll help your customers is that It will increase their perceived value There was a research study where they Had three bottles of wine they had a Cheap wine a mid-price wine and the Expensive one they had people try them

Out and they had them rank them based on What they thought people said I think The most expensive line is the best the Middle price is the middle and the Cheapest wine was the worst and that's Not that surprising except when the Researchers explained that all three Wines were the same when you raise your Prices a more expensive thing is Perceived in real terms as more valuable Even if the actual core product is the Same the third is results for your Customers if you increase their Emotional investment you increase their Perceived value what ends up happening They actually do get better results when They sign up for the gym for personal Training versus a 10 a month thing they Get better results the fourth thing that Happens when you raise your prices you Actually attract less demanding Customers have you ever seen this meme The customer says well what exactly am I Going to be getting for fifty dollars Then it has the rich customers like wire Set let me know what next steps are Anybody who's ever been in client Services can attest to this the higher The price tag the more expensive the Contract the fewer payment plans you Have to set up the easier the customer Is to deal with part of the reason that A 50 person is saying well what exactly Am I be getting if somebody's got a

Hundred dollars in their bank account You're asking for fifty percent of their Net worth just because someone's willing To pay you doesn't mean that you should Take it the fifth benefit that your Customers will get as a result of Raising your prices is that you actually Have more money you can deliver on your Promises for so imagine you've got a Hard cost thing that costs five bucks And you charge eight bucks we only have Three dollars left to run the rest of Your business provide service you don't Have a lot of room there now imagine you Charge fifty dollars for that same five Dollar thing you have forty five dollars That you can now use to deliver two Three four times the value the customer Gets a better experience you can Reinvest in your product you can attract Higher level talent to your business if You have no margin the best people Aren't going to work for you they're Going to go to the real business owner Who understands how margin needs to work Whereas you're sitting here dealing with Fires all day because of people haggling Over fifty dollars the best way to sell Is having the full conviction that your Product is the best the best quality and The most elitist product in every line That we are selling throughout the world And you can't say your products the best If you're trying to do it on margin and

You don't have the money to reinvest in Good people you can't do it when you Have all of these higher paying lower Demanding happier your customers your Perception of the real impact you're Actually making goes up it becomes this Snowball that starts rolling and you Have these testimonials and these Reviews that start rolling in the Momentum Builds on the flip side if you Don't have that and it becomes this Vicious Cycle in the other direction Where you're not getting these Testimonials all you're getting is Chargebacks and refunds from these Demanding customers that had unrealistic Expectations because it was such a high Percentage of their net worth there was Nothing that was going to save them from Themselves there's no advantage to being The second cheapest person in the Marketplace but there is an advantage to Being the most expensive