Chris Koerner visits a Nashville dessert shop selling a custom item called a Google Cluster for $17 with a 97% profit margin. They move 500 units a day by revealing the price only after customers commit and letting them watch it being made.
$17
Approximately 97% (also referred to as "90 plus percent" profit margin)
500 per day
November 18, 2024
I have an addiction. I'm at this dessert shop in Nashville and I can't help but think, how much money does this place make every day? Before I give you the answers, I want to tell you about two brilliant business tactics that this place is using. It's called Google Clusters. One of them is called the Sunk cost Fallacy. If you see that computer over there, you can order these custom Google Clusters, you can order these at the computer, but you have no idea how much they cost until you're already to the end of the process. That's called the Sunk cost fallacy because by the time you see that these are $17 for one of them, you're like, I've already placed my order, there's no point in backing out now. Brilliant business tactic. Much respect from me. Two experiential why can they charge $17? Because if you look over here, you can watch them make your custom order. That's what they're charging a 97% profit margin for. Quite brilliant. So I asked them, how many of these things are you selling per day? 500 a day at $17 a piece, almost 10 grand a day just in these things. 90 plus percent profit margin. But how does it taste?
