Pokémon Cards: Here's How They Can Be Worth Millions of Dollars
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Nearly thirty years after their debut, some of the rarest Pokémon cards are now selling for millions of dollars, transforming from a children's game into incredibly valuable collectibles for enthusiasts, but unfortunately also into attractive targets for criminals.
An entire market has sprung up around these cards, including auction houses, grading companies that certify their authenticity and condition, and a growing number of investors, but as their value has risen, so too have speculation, theft, and even armed robberies involving these collectibles (source: "How Pokémon Cards Became Scarce, Valuable and Surprisingly Dangerous," Bloomberg).
What Entrepreneurs Can Learn from This News
Perceived Value Is Higher Than Real Market Value
One of the most important business principles of our time is that the market does not pay for a product based on what it costs to produce, but based on the value people assign to it (source: "A Beginner's Guide to Value-Based Strategy", Harvard Business School).
This explains why two companies can sell virtually identical products at completely different prices.
Many of you probably already know this principle, but struggle to apply it or understand it only on a theoretical level.
And that is a shame, because it makes the difference between a brand that sticks in people's minds and one that disappears into a sea of indistinguishable competitors.
Take coffee, for example.
An espresso at McCafé costs just a few dollars.
If you happen to be in Monte Carlo and order a coffee at the American Bar at the Hôtel de Paris, you might pay around 10 euros for it (I couldn't find a source that publishes the price of coffee, but trust me, I go to Monaco often and I always pay roughly that amount).
And yet, we are still talking about an espresso.
In fact, some people might even argue that McDonald's coffee tastes better, especially if you order it with all the sweets you want.
So why would anyone pay ten times as much for the same coffee?
Because at the American Bar, you are not just buying coffee... You are buying the location, the atmosphere, the view of Casino Square, the history of the hotel, and its prestige.
The same principle applies to Pokémon cards.
From a purely physical standpoint, they are nothing more than small pieces of printed cardboard featuring drawings of some very strange Japanese characters, so if we valued them solely based on the material they are made of, they probably would not even be worth a McCafé espresso.
So why are some of them worth millions?
Because of the stories surrounding them and the meaning they have acquired over the years.
And this principle applies to virtually every industry; we see it all the time.
However, we need to be careful not to misunderstand the concept of high pricing.
When people talk about "increasing perceived value," the first thing that comes to mind is charging drastically higher prices.
I have already explained and demonstrated several times that positioning yourself at the top of the market exclusively through premium pricing is becoming increasingly difficult, especially given the ongoing slowdown in the luxury sector (source: "Saks Fifth Avenue: Is Luxury on Its Knees?", Business Decision Lab).
The real goal is not to make customers pay more, but to get more people to choose your business over the alternatives.
That is the real luxury for an entrepreneur today.
A brand that sticks in people's minds is remembered when it is time to make a purchase, recommended more often, and less likely to be compared with competitors solely on price.
Increasing perceived value serves precisely this purpose.
And how do you do it?
The best way to increase perceived value is to reveal the value that already exists but remains invisible to the customer.
Think of a craftsman: if he only posts a photo of a finished piece of furniture, customers simply see a piece of furniture.
But if he explains how he selected the wood, shows the production process in videos on YouTube, and emphasizes the time spent perfecting every detail, that same object suddenly takes on an entirely different meaning.
The product has not changed, but the customer's perception of its value has.
The same applies to consultants who explain the methodology behind their recommendations.
Restaurants can do exactly the same thing by telling the story of their ingredients and suppliers.
The more customers understand the expertise and care you put into the products or services you offer, the less likely they are to judge your business solely on price.
Over time, this creates familiarity and builds a brand that people will remember when it is time to make a purchasing decision.