Apple just released its latest product, the Apple Vision Pro, and from the outside looking in, the launch was a success. Which is strange considering that, according to Facebook CEO Mark Zuckerberg, the Apple Vision Pro is an inferior product to their Meta Quest 2 VR system...and 7x the cost!

So today I want to break down the launch, what Apple did, and why it worked.

But to understand Apple's positioning, it helps to take a look at Tesla.

The Launch of the Tesla Roadster

Tesla launched their first vehicle -- the Tesla Roadster -- in 2008. The base price? $98,950.

tesla roadster launch tom morkes analysis 1 - The Launch of the Apple Vision Pro (an Analysis)

Comparatively, the average price of a car at that time was only $23,429.

average cost of car tom morkes 1 - The Launch of the Apple Vision Pro (an Analysis)

This made the Tesla product $75,521 more expensive than the average car at the time.

Percentage-wise, that's 322% more expensive, or 4x the average price of a car in 2008.

Let me highlight the important thing here:

The Tesla Roadster was 4x more expensive than the average competitor (make a note of this for later please).

The Launch of the Apple Vision Pro

Now, let's look at the launch of the Apple Vision Pro.

apple vision pro launch tom morkes analysis 1 - The Launch of the Apple Vision Pro (an Analysis)

I see some similarities…

Like the Tesla Roadster, it's not the first virtual reality headset.

("there are many like it, but this one is mine")

Like the Tesla Roadster, it's unabashedly class-ist and does NOT care about the majority of the market.

average savings tom morkes 1 - The Launch of the Apple Vision Pro (an Analysis)

And like the Tesla Roadster, the pricing is integral to the product.

Case in point:

Take a look at the Meta Quest 2 (originally titled the Oculus Quest 2, but later rebranded), which was released in 2020 for $499.

Fast forward to 2023, Facebook (Meta!) releases the Meta Quest 3 for $499.

Then in comes Sony. To compete in the VR market, Sony releases the Sony PSVR 2 with a price tag of $549.99.

There are other VR products, and they all fall around the same price point.

Apple's Pricing Strategy

Then in walks Apple, hours late to the party and probably a little drunk, and says hold my beer.

apple vision prof launch analysis pricing tom morkes - The Launch of the Apple Vision Pro (an Analysis)

The Apple Vision Pro releases for a whopping $3,499.

That's $3,000 more expensive than the Meta Quest 3. Percentage-wise, it's a 601.2% increase in price…

And by multiple, the Apple Vision Pro is 7x the price of the average consumer VR product in this category.

Take that in for a second:

7x more expensive than the competition.

Apple Vision Pro Pricing Strategy (Mass Adoption vs. Status)

What's the point?

Entrepreneurs, creators, and companies often look at pricing in terms of 'mass adoption.'

What's the sweet spot to get the most number of people to buy the most number of products to make the most amount of money?

They compete on the feature set.

It works. That's why they do it.

But when a market is saturated, this pricing strategy ends up being a race to the bottom.

Good for the budget buyer...but for the brand trying to stand out, it becomes increasingly difficult to communicate a message around why your product is 5% to 15% more expensive compared to the competition.

For the customer, that requires brainpower, time, and effort. I have to look at the specs, I have to read reviews, and I have to convince myself the "premium brand" is worth paying more when the "dup" is just as good for half the price.

Apple's Status Pricing

But Tesla and Apple -- they take the ULTRA PREMIUM pricing approach.

In other words: they're playing the 'status' game.

There's no comparing the Tesla Roadster or the Apple Vision Pro to anything else, because you literally can't compare them to anything -- and that has nothing to do with the feature set. It has everything to do with price.

When playing the game of status, the price IS the product.

The product features, the packaging, the polish…all of that reinforces the story that the price is already telling you before you learn anything more about the product.

Here's what Musk said about the original Tesla Roadster:

tesla pricing strategy tom morkes - The Launch of the Apple Vision Pro (an Analysis)

To break the mold, to establish a beachhead in the market, Tesla HAD to play the 'status' game instead of the 'price to value' game. They started at the top of the market, intentionally excluding 99% of the population.

Yes, this gave them margin, but more importantly, it let people know: this is only for the cool kids.

And you see where they are now.

As for Apple? Well, it seems to be paying off...

apple vision pro launch sales result tom morkes - The Launch of the Apple Vision Pro (an Analysis)

Apple Vision Pro Launch Summary (and things to think about)

In the game of STATUS, the price IS the product.

So when you're thinking about pricing, maybe consider an APPLE or Tesla approach.

Instead of competing on an extra feature, why not go 7x higher than your average competitor and see what happens?

Yes, it raises the stakes. And, yes, you'll have to level up your messaging, packaging, and the product itself (although apparently not according to Zuck)...

…but at a 7x multiple, maybe there's margin (and meaning) in doing the extra work to be in a category of one.

michael zipursky on in the trenches - ITT 167: How to Close More Clients with Michael Zipursky

Michael Zipursky is the CEO of Consulting Success, and is a coach, consultant and author. Michael's list of clients include organizations like Panasonic, Dow Jones, Financial Times, Royal Bank and many others. He has written 5 books including “Profitable Relations: How to Dramatically Increase Your Profits By Giving Customers What They Really Want,” and “The Consulting Success System: How to Become a Successful Consultant.”

In today’s conversation, we talk about how to grow a successful coaching or consulting business. Michael imparts the four pillars of consulting success that are proven to add value for a client and create a sustainable consulting business that does not rely on its network. He also shares how to convert client consultations into long-term (and high-paying) clients, and how to handle initial intake / consultation calls, to get someone to make a decision on whether to hire you now, rather than waiting in limbo for a reply.

If you are a coach or consultant, this is going to be one of those interviews you’ll want to come back to again and again. Enjoy!

In this broadcast, Michael and I talk about:

And much more.

In The Trenches with Tom Morkes on YouTube:

How to Connect with Michael Zipursky Online:

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How You Can Support In The Trenches

Did you enjoy today's broadcast of In The Trenches? Please click here to leave an honest rating and review on iTunes. Your review helps me spread the word of this podcast, which allows me to line up amazing guests and continue to produce this podcast ad-free. Thanks so much in advance for your support.

regina anaejionu on in the trenches - ITT 157: Sell More With Extreme Transparency with Regina Anaejionu

Regina Anaejionu is the creator of ByRegina.com. She has been writing, growing online communities, and selling products and services online since 2008. She's done everything from full time writing, to design work, to WordPress website creation, to publishing her own courses and ebooks.

In today's conversation, we talk about 'sensative sales.' In a nutshell, it's a way to market and sell your products and services by being fully transparent. Instead of hiding your offer behind a webinar, you share the offer right away, and give the potential customer everything he or she needs to make a purchase. That way they have the time to think it over and won't be blindsided by the offer when you share it on a webinar (or however else you might share it).

We talk about this and much more on today's broadcast.

In this broadcast, Regina Anaejionu and I talk about:

And much more.

In The Trenches with Tom Morkes on YouTube:

How to connect with Regina Anaejionu:

Get the Latest Broadcasts of In The Trenches

Subscribe to In The Trenches on iTunes

How You Can Support In The Trenches

Did you enjoy today's broadcast of In The Trenches? Please click here to leave an honest rating and review on iTunes. Your review helps me spread the word of this podcast, which allows me to line up amazing guests and continue to produce this podcast ad-free. Thanks so much in advance for your support.

I started consulting 10 months ago.

The first time I offered my services I felt like a phony.

While I felt comfortable and confident with the topics I teach (publishing, product launches, online biz, etc.), I wasn't sure people would see the value...

And I figured even fewer would take me up on it.

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Before I was ready.

Before I felt confident.

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