Then hear to Alex Goldmark and also Dan Pashman"s entertaining planet Money podcast, where castle prove it. The 2 journalists sent three samples that vodka -- an high-quality Grey Goose, a homemade version and also a bottom-shelf cheap kind -- to an live independence lab, and the rap came back saying that the taste the all three was pretty lot equal. Actually, due to the fact that one of the samples had actually slightly an ext of a compound the could cause allergies, a rep native the lab claimed that the cheapest vodka -- and not the expensive Grey Goose -- was actually better.

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Why is this?

"Title 27, section 5.22 the the Alcohol, Tobacco and Firearm code claims that vodka need to be distilled and also treated until it is "without distinctive character taste, aroma color,"" Pashman reported. "By regulation you have to make an commercial grade pure alcohol first, and also then every you execute is add water and also you have vodka."

All vodka is the same! It"s, follow to Cornell regulation School"s Legal information Institute, a "neutral spirit" that is "so cure after distillation through charcoal or various other materials, regarding be without distinctive character, aroma, taste or color."

So if it"s all the same, exactly how come a bottle of Grey Goose costs about $35 if Sobieski Vodka is only $12? That’s almost three time the price! Vodka aficionados will certainly tell you that the costlier brands room "distilled more" or use "higher quality ingredients" (uh, water?) or won"t reason vicious hangovers come the morning. Maybe they"re right about that. Yet there"s really just one more reason: human being pay based on perception.

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It"s cool come drink Grey Goose, or Absolut or "Stoli," aka Stolichnaya. You look hip to her friends -- or that date you"re do the efforts to impress -- and you feeling cool doing it. It"s the same reason why world pay more for a BMW or fall $70 because that a steak in ~ Morton"s when you can acquire a perfectly great steak at Outback for fifty percent the price. It"s around image. It’s about impression. It’s around feeling good.

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My small tech for sure charges $175 every hour because that our services. That"s expensive. World can rental techs for less than fifty percent the price. But do they have the "knowledge" that we have? execute they have the "comfort" of discovering that we"re therefore "experienced?" Don"t they want to tell your employees and investors the they"re making use of "the best"? and also doesn’t "the best" always cost more? I recognize that other, much less costly, techs may be able to do the exact same kind of task we do. But, after 25 year in the business, there’s a specific intangible allure around our firm the appeals to certain kinds of clients. Yeah, pizza is just pizza, however gourmet pizza is absolutely worth it, right?

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Science shows that all vodka is basically the same. The ingredient that go into a party of Grey Goose -- just like the materials and also labor hours you put into a task -- really don"t issue in the end. What problem is exactly how the customer feels once they order a Grey Goose ~ above the rocks... Or rental your firm to perform a job.


Written By

Gene Marks management Network VIP

Gene clues is a CPA and also owner the The Marks group PC, a ten-person an innovation and gaue won consulting firm situated near Philadelphia started in 1994.