Case In Point
I wrote in my previous post why it does not pay to be a generalist. Here is another story to prove my point. Most of you would know that cars generally depreciate, right? That’s why my own opinions and other financial site and blog’s general opinion to not to waste any hard earned cash on cars.
Well I reckon most of us can’t afford super cars. If you can, very likely you won’t be reading this site. But Ferrari knows how to be a specialist. They target a very specific niche. People with deep deep pockets. When they launched the F430 in 2002, a basic model cost around $185,000. If you look around eBay today, they go for $300,000. That is a premium of over 60%. Not bad for owning a toy that appreciates.
That hasn’t always been the case. Back in the 80s and early, when Ferrari launched the unloved 348, today it has depreciated enough that if you are an impulsive family man, facing a mid life crisis and want something to shore up your ego, you could ask yourself, “Do I buy the loaded Honda Odyssey or the used Ferrari?â€
In 2002, when the Ferrari Enzo was unveiled, Ferrari had 1,000 orders for the $650,000 Enzo. They stuck to its decision to build only 400 cars. This means that they left $390,000,000 on the table in the name of exclusivity and almighty demand.
Forget being a generalist, think specialist.
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