Sharing Daily Discoveries About Personal Finance And Business Topics

Paying More For The Experience Than The Actual Product

Today there was a surprise birthday party for my niece and part of the plan was to distract her throughout the day while people were setting up. To so this, she was brought to one of those build a bear stores. As the name implies, you literally go into the store to build your own teddy bear. Is it ever expensive too. It seemed like the price for making a bear was close to thirty dollars for each person.

I was then looking at what the service was in total. Of course you first have the teddy bear product itself which is the main item. Afterwards, everything seems to be glamourized as if you are adopting an animal. You get this cardboard box that looks like something you would get when you buy a pet from an animal shop. As well, you then get a “birth certificate” so that you remember that special day that you made the bear.

I guess another way of thinking about it from a business point of view is that you can sure make a lot of money by creating an experience of sort in these cases as oppose to just selling the item itself. I can see how especially in these cases where the target is kids almost every parent will just spend the money just to make the child smile.

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