Monday, December 6, 2010

Make Making Money


Every so often Warren Buffett goes on TV and calls for higher taxes. This from the guy who’s paid, according to Forbes, perhaps less than $10 million in taxes, a tiny percentage of his $50 billion net worth. I say perhaps because, to the best of my knowledge, Buffett has never made his tax returns public.


Buffett is big-business, with his Berkshire Hathaway holding company stock selling (today) at $119,675.00 per share. Berkshire Hathaway has 1 million shares, which means that Buffett heads a company worth more that the gross national product of a few small Latin American countries.


How does Buffett manage to pay so little in taxes? For one, Buffett, who wants everybody to pay for big-spending big government, donates sizable amounts to tax-exempt philanthropies, such as the Gates Foundation. Forbes, again,

He donates appreciated Berkshire Hathaway stock — which costs him pennies on the dollar — to charity, and receives a fat, juicy tax deduction at the appreciated price without having to pay a capital gains tax on the appreciation. (And, note that the money actually sits in his own charitable organization.) He’s saving income taxes with the ordinary deduction so it’s essentially a tax shelter.


He builds up his massive net worth and doesn’t have to sell stock while deferring capital gains. When he does take a capital gain, it’s at a 15% rate, and he lives in a low-tax state.


Buffett has been known to complain that he paid taxes on the lower-rated capital gains rate rather than the higher income-tax rate. Well, play me the world’s smallest violin, Warren.



Mind you, I’m all for capitalism. America is the greatest country in the world because historically it afforded its citizens the ability to legally prosper and live in abundance. What I object to is billionaires who got their own aiming to prevent anyone else from attaining the same, or more, as they.


This latest time around Buffett was on ABC’s This Week, and told Christiane Amanpour that “People at the high end, people like myself, should be paying more taxes”,



It’s that magical time of the year when brand preferences are being lodged in the consumer psyche by any means necessary, be it free online shipping offers or conventional “doorbuster” style shopper stampedes. (Plus, in an admirable show of advance conditioning, there are those sidebar Four Loko-fueled parking lot brawls.)


But the romance of the brand is a notoriously ephemeral thing, as any casual survey of thrift-store Tickle-Me Elmo and Tamagotchi displays will promptly demonstrate. To do the job right, in this as in so many other realms, we would do well to heed the example of the Germans. As Bloomberg’s Chris Reiter reports, Deutschland’s Big Three automakers—BMW, Mercedes, and Audi (now a Volkswagen property)—have long been locked into a battle for the overtaxed attention spans of the youth market.


Back in February, Audi made a dramatic bid for high-end kiddie allegiance with a $13,300 model of a 1930s roadster, evidently calculating that a Weimar-era collectible is the perfect bridge to the true sturm-und-drang of a privileged adolescence. The model comes replete with “an aluminum frame, hydraulic brakes, seven speeds, leather-clad steering wheel, and oak dashboard,” and nearly sold out of its initial 500-unit manufacturing run, Reiter notes.


The idea behind such lush toy marketing, of course, is to instill intense brand-loyalty among the market’s littlest thought leaders. "Merchandising is important not because you can make huge money with it,” Audi sales chief Peter Schwarzenbauer tells Reiter, “but because it's another means of positioning your brand.” That means that Audi isn’t confining its initiatives to pint-sized drive trains, but is branching out to other durable badges of status, such as a $17,000-plus table soccer game—the idea here, evidently, being not so much to cultivate hooligan-style soccer fandom in the plutocratic young, but rather to inculcate the more genteel and respectable habit of full-scale team ownership.


It’s true that Audi isn’t neglecting more downmarket kiddie consumers in its push, with a $60 branded teddy bear and a $400 red-plastic version of the roadster; here, the functional array of model accessories include “an adjustable rollover bar, hand brake, over-sized tires with Audi-style rims, and padded seats.” But the main event is clearly the scrum for top-line market cachet, which is why Audi’s rivals are stepping up their game. Mercedes, for instance, is planning a spring rollout for “the foot-powered SLS Bobby-Benz, featuring headlights, grill, and rear end similar to those of the company's $183,000 SLS sportscar. The toy SLS features quiet-running tires, an Ackermann steering system with tight cornering for living-room maneuverability, and a steering wheel that absorbs impact to prevent injury in the event of a collision.” The model will boast a comparatively modest $120 asking price—but that loss-leader price point is a small sacrifice when you’re grooming future six-figure auto customers. "All the products have to live up to Mercedes' standards for quality and safety—especially our toys, which are all-time favorites with the next generation of Mercedes-Benz customers," reports Christian Boucke, who heads up the Benz accessories division.


BMW, meanwhile, appears to be the most horizontally minded lifestyle competitor in the luxe-branded market, brandishing a wide panoply of gear from a $460 kid-scale version of its M3 GT2 race car to a pair of $50 rain boots. The Beamer accessories division also turns a healthy 7 percentish profit—even though its brand-keepers, too, stress their real stake is in the longer-term loyalty game. “We are first and foremost a marketing initiative, and the main objectives are to broaden the brand's presence and strengthen loyalty," says Thomas Goerdt, who directs BMW’s distinctly un-German-sounding merchandising and lifestyle unit.


Still, the great risk of too-rampant accessory branding is market saturation—which is why Michel Gabriel, a branding specialist who has advised past Audi projectS, draws the line at underwear, even though “a lot of money can be made from a product” aimed at the intimate end of the brand market.


We can’t help thinking, though, that the Grosse Drei auto barons are selling short tomorrow’s financial titans with mere miniature knockoffs of luxury rides—and not just because their British competitor, Aston Martin, still owns the highest tip of the market with a Volante Junior model fetching a cool $24,000 with a devoted consumer base of young royals—who have duly gone on to modify their fullscale Astons to run on wine.


After all, the lesson of branding the world over is that a truly consummate brand eventually eclipses its mere material referent—hence the power of the glyphlike Nike swoosh (which only cost the firm $35 when design student Carolyn Davidson submitted in in 1971), or the “i”-themed Mac brand interface. Likewise, the business model for Mercedes has involved coaxing lavish multimillion-dollar subsidies from U.S. lawmakers at the same time it’s presented itself as an above-the-fray survivor of the 2008 global auto downturn.


Likewise, BMW has briskly seen to it that influential state congressional delegations have placed its own export interests ahead of the bailed-out U.S. auto industry—while Audi’s corporate parent Volkswagen has at least been candid in soliciting U.S. bailout funds, while also putting in for homeland funds to shore up its rickety loan operation. (Needless to say, this corporate pursuit of public-sector handouts doesn’t seem to have softened VW’s stand on American union drives, since like other foreign automakers, it’s expanded operations in anti-union right-to-work states to evade higher labor costs at home.) All of which is to say that, if doting plutocratic parents are looking to instill formative brand preferences this holiday season, nothing says “heed daddy’s example” like a simple, influence-subsidized government check. And Lord knows that for the properly connected family or industry, a good government kickback is about as hard to obtain as a pair BMW rain boots.




You, valued and valuable reader, are invited to join Chris Lehmann and your other fellow rich people to celebrate the publication of Rich People Things, this Thursday, December 2nd, at Le Poisson Rouge in New York City, from 7 to 9 p.m. There will even be a brief chit-chat with Thomas Frank and Maureen "Moe" Tkacik.



bench craft company rip off

Soap <b>News</b>: &#39;Days of Our Lives&#39; Lands Big Fish and More

The holidays are hopping in soap opera world, with new characters moving in and familiar faces returning. Last week, we reported that CBS gave 'The.

Piers Morgan On Facing Off Against Fox <b>News</b>: Part of Rupert <b>...</b>

Larry King's successor talks about CNN's chances against Fox News.

Breaking <b>News</b>: Watch A Gigantic Looping Solar Prominence

The Solar Dynamics Observatory never fails to deliver absolutely stunning images from the Sun: as of 18:49 UT today, the above picture is what the Sun looked like in the ultraviolet spectrum. The prominence that you are seeing looping ...


bench craft company rip off

Soap <b>News</b>: &#39;Days of Our Lives&#39; Lands Big Fish and More

The holidays are hopping in soap opera world, with new characters moving in and familiar faces returning. Last week, we reported that CBS gave 'The.

Piers Morgan On Facing Off Against Fox <b>News</b>: Part of Rupert <b>...</b>

Larry King's successor talks about CNN's chances against Fox News.

Breaking <b>News</b>: Watch A Gigantic Looping Solar Prominence

The Solar Dynamics Observatory never fails to deliver absolutely stunning images from the Sun: as of 18:49 UT today, the above picture is what the Sun looked like in the ultraviolet spectrum. The prominence that you are seeing looping ...


bench craft company rip off

Soap <b>News</b>: &#39;Days of Our Lives&#39; Lands Big Fish and More

The holidays are hopping in soap opera world, with new characters moving in and familiar faces returning. Last week, we reported that CBS gave 'The.

Piers Morgan On Facing Off Against Fox <b>News</b>: Part of Rupert <b>...</b>

Larry King's successor talks about CNN's chances against Fox News.

Breaking <b>News</b>: Watch A Gigantic Looping Solar Prominence

The Solar Dynamics Observatory never fails to deliver absolutely stunning images from the Sun: as of 18:49 UT today, the above picture is what the Sun looked like in the ultraviolet spectrum. The prominence that you are seeing looping ...


bench craft company rip off
Jabón <b> Noticias </ b>: Días festivos &#39; &#39; de nuestras vidas "Tierras de Big Fish y másLa están saltando en el mundo de las telenovelas, con nuevos personajes que entran y caras familiares que regresan. La semana pasada, se informó que la CBS le dio 'La.

Piers Morgan El frente a frente contra Fox <b> Noticias </ b>: Parte de las conversaciones sucesor de Rupert <b> ...</ b> Larry King de CNN sobre las posibilidades en contra de Fox News.

Rompiendo <b> Noticias </ b>: un gigantesco reloj solar Lazo ProminenceThe Observatorio de Dinámica Solar nunca deja de ofrecer imágenes absolutamente impresionante desde el Sol: de 18:49 UT hoy en día, la imagen de arriba es lo que el Sol parecía en el espectro ultravioleta. La importancia que está viendo en bucle ...


bench craft company rip off

Soap <b>News</b>: &#39;Days of Our Lives&#39; Lands Big Fish and More

The holidays are hopping in soap opera world, with new characters moving in and familiar faces returning. Last week, we reported that CBS gave 'The.

Piers Morgan On Facing Off Against Fox <b>News</b>: Part of Rupert <b>...</b>

Larry King's successor talks about CNN's chances against Fox News.

Breaking <b>News</b>: Watch A Gigantic Looping Solar Prominence

The Solar Dynamics Observatory never fails to deliver absolutely stunning images from the Sun: as of 18:49 UT today, the above picture is what the Sun looked like in the ultraviolet spectrum. The prominence that you are seeing looping ...


bench craft company rip off

Every so often Warren Buffett goes on TV and calls for higher taxes. This from the guy who’s paid, according to Forbes, perhaps less than $10 million in taxes, a tiny percentage of his $50 billion net worth. I say perhaps because, to the best of my knowledge, Buffett has never made his tax returns public.


Buffett is big-business, with his Berkshire Hathaway holding company stock selling (today) at $119,675.00 per share. Berkshire Hathaway has 1 million shares, which means that Buffett heads a company worth more that the gross national product of a few small Latin American countries.


How does Buffett manage to pay so little in taxes? For one, Buffett, who wants everybody to pay for big-spending big government, donates sizable amounts to tax-exempt philanthropies, such as the Gates Foundation. Forbes, again,

He donates appreciated Berkshire Hathaway stock — which costs him pennies on the dollar — to charity, and receives a fat, juicy tax deduction at the appreciated price without having to pay a capital gains tax on the appreciation. (And, note that the money actually sits in his own charitable organization.) He’s saving income taxes with the ordinary deduction so it’s essentially a tax shelter.


He builds up his massive net worth and doesn’t have to sell stock while deferring capital gains. When he does take a capital gain, it’s at a 15% rate, and he lives in a low-tax state.


Buffett has been known to complain that he paid taxes on the lower-rated capital gains rate rather than the higher income-tax rate. Well, play me the world’s smallest violin, Warren.



Mind you, I’m all for capitalism. America is the greatest country in the world because historically it afforded its citizens the ability to legally prosper and live in abundance. What I object to is billionaires who got their own aiming to prevent anyone else from attaining the same, or more, as they.


This latest time around Buffett was on ABC’s This Week, and told Christiane Amanpour that “People at the high end, people like myself, should be paying more taxes”,



It’s that magical time of the year when brand preferences are being lodged in the consumer psyche by any means necessary, be it free online shipping offers or conventional “doorbuster” style shopper stampedes. (Plus, in an admirable show of advance conditioning, there are those sidebar Four Loko-fueled parking lot brawls.)


But the romance of the brand is a notoriously ephemeral thing, as any casual survey of thrift-store Tickle-Me Elmo and Tamagotchi displays will promptly demonstrate. To do the job right, in this as in so many other realms, we would do well to heed the example of the Germans. As Bloomberg’s Chris Reiter reports, Deutschland’s Big Three automakers—BMW, Mercedes, and Audi (now a Volkswagen property)—have long been locked into a battle for the overtaxed attention spans of the youth market.


Back in February, Audi made a dramatic bid for high-end kiddie allegiance with a $13,300 model of a 1930s roadster, evidently calculating that a Weimar-era collectible is the perfect bridge to the true sturm-und-drang of a privileged adolescence. The model comes replete with “an aluminum frame, hydraulic brakes, seven speeds, leather-clad steering wheel, and oak dashboard,” and nearly sold out of its initial 500-unit manufacturing run, Reiter notes.


The idea behind such lush toy marketing, of course, is to instill intense brand-loyalty among the market’s littlest thought leaders. "Merchandising is important not because you can make huge money with it,” Audi sales chief Peter Schwarzenbauer tells Reiter, “but because it's another means of positioning your brand.” That means that Audi isn’t confining its initiatives to pint-sized drive trains, but is branching out to other durable badges of status, such as a $17,000-plus table soccer game—the idea here, evidently, being not so much to cultivate hooligan-style soccer fandom in the plutocratic young, but rather to inculcate the more genteel and respectable habit of full-scale team ownership.


It’s true that Audi isn’t neglecting more downmarket kiddie consumers in its push, with a $60 branded teddy bear and a $400 red-plastic version of the roadster; here, the functional array of model accessories include “an adjustable rollover bar, hand brake, over-sized tires with Audi-style rims, and padded seats.” But the main event is clearly the scrum for top-line market cachet, which is why Audi’s rivals are stepping up their game. Mercedes, for instance, is planning a spring rollout for “the foot-powered SLS Bobby-Benz, featuring headlights, grill, and rear end similar to those of the company's $183,000 SLS sportscar. The toy SLS features quiet-running tires, an Ackermann steering system with tight cornering for living-room maneuverability, and a steering wheel that absorbs impact to prevent injury in the event of a collision.” The model will boast a comparatively modest $120 asking price—but that loss-leader price point is a small sacrifice when you’re grooming future six-figure auto customers. "All the products have to live up to Mercedes' standards for quality and safety—especially our toys, which are all-time favorites with the next generation of Mercedes-Benz customers," reports Christian Boucke, who heads up the Benz accessories division.


BMW, meanwhile, appears to be the most horizontally minded lifestyle competitor in the luxe-branded market, brandishing a wide panoply of gear from a $460 kid-scale version of its M3 GT2 race car to a pair of $50 rain boots. The Beamer accessories division also turns a healthy 7 percentish profit—even though its brand-keepers, too, stress their real stake is in the longer-term loyalty game. “We are first and foremost a marketing initiative, and the main objectives are to broaden the brand's presence and strengthen loyalty," says Thomas Goerdt, who directs BMW’s distinctly un-German-sounding merchandising and lifestyle unit.


Still, the great risk of too-rampant accessory branding is market saturation—which is why Michel Gabriel, a branding specialist who has advised past Audi projectS, draws the line at underwear, even though “a lot of money can be made from a product” aimed at the intimate end of the brand market.


We can’t help thinking, though, that the Grosse Drei auto barons are selling short tomorrow’s financial titans with mere miniature knockoffs of luxury rides—and not just because their British competitor, Aston Martin, still owns the highest tip of the market with a Volante Junior model fetching a cool $24,000 with a devoted consumer base of young royals—who have duly gone on to modify their fullscale Astons to run on wine.


After all, the lesson of branding the world over is that a truly consummate brand eventually eclipses its mere material referent—hence the power of the glyphlike Nike swoosh (which only cost the firm $35 when design student Carolyn Davidson submitted in in 1971), or the “i”-themed Mac brand interface. Likewise, the business model for Mercedes has involved coaxing lavish multimillion-dollar subsidies from U.S. lawmakers at the same time it’s presented itself as an above-the-fray survivor of the 2008 global auto downturn.


Likewise, BMW has briskly seen to it that influential state congressional delegations have placed its own export interests ahead of the bailed-out U.S. auto industry—while Audi’s corporate parent Volkswagen has at least been candid in soliciting U.S. bailout funds, while also putting in for homeland funds to shore up its rickety loan operation. (Needless to say, this corporate pursuit of public-sector handouts doesn’t seem to have softened VW’s stand on American union drives, since like other foreign automakers, it’s expanded operations in anti-union right-to-work states to evade higher labor costs at home.) All of which is to say that, if doting plutocratic parents are looking to instill formative brand preferences this holiday season, nothing says “heed daddy’s example” like a simple, influence-subsidized government check. And Lord knows that for the properly connected family or industry, a good government kickback is about as hard to obtain as a pair BMW rain boots.




You, valued and valuable reader, are invited to join Chris Lehmann and your other fellow rich people to celebrate the publication of Rich People Things, this Thursday, December 2nd, at Le Poisson Rouge in New York City, from 7 to 9 p.m. There will even be a brief chit-chat with Thomas Frank and Maureen "Moe" Tkacik.



bench craft company rip off

Soap <b>News</b>: &#39;Days of Our Lives&#39; Lands Big Fish and More

The holidays are hopping in soap opera world, with new characters moving in and familiar faces returning. Last week, we reported that CBS gave 'The.

Piers Morgan On Facing Off Against Fox <b>News</b>: Part of Rupert <b>...</b>

Larry King's successor talks about CNN's chances against Fox News.

Breaking <b>News</b>: Watch A Gigantic Looping Solar Prominence

The Solar Dynamics Observatory never fails to deliver absolutely stunning images from the Sun: as of 18:49 UT today, the above picture is what the Sun looked like in the ultraviolet spectrum. The prominence that you are seeing looping ...


bench craft company rip off

Soap <b>News</b>: &#39;Days of Our Lives&#39; Lands Big Fish and More

The holidays are hopping in soap opera world, with new characters moving in and familiar faces returning. Last week, we reported that CBS gave 'The.

Piers Morgan On Facing Off Against Fox <b>News</b>: Part of Rupert <b>...</b>

Larry King's successor talks about CNN's chances against Fox News.

Breaking <b>News</b>: Watch A Gigantic Looping Solar Prominence

The Solar Dynamics Observatory never fails to deliver absolutely stunning images from the Sun: as of 18:49 UT today, the above picture is what the Sun looked like in the ultraviolet spectrum. The prominence that you are seeing looping ...


bench craft company rip off

Soap <b>News</b>: &#39;Days of Our Lives&#39; Lands Big Fish and More

The holidays are hopping in soap opera world, with new characters moving in and familiar faces returning. Last week, we reported that CBS gave 'The.

Piers Morgan On Facing Off Against Fox <b>News</b>: Part of Rupert <b>...</b>

Larry King's successor talks about CNN's chances against Fox News.

Breaking <b>News</b>: Watch A Gigantic Looping Solar Prominence

The Solar Dynamics Observatory never fails to deliver absolutely stunning images from the Sun: as of 18:49 UT today, the above picture is what the Sun looked like in the ultraviolet spectrum. The prominence that you are seeing looping ...


bench craft company rip off

Soap <b>News</b>: &#39;Days of Our Lives&#39; Lands Big Fish and More

The holidays are hopping in soap opera world, with new characters moving in and familiar faces returning. Last week, we reported that CBS gave 'The.

Piers Morgan On Facing Off Against Fox <b>News</b>: Part of Rupert <b>...</b>

Larry King's successor talks about CNN's chances against Fox News.

Breaking <b>News</b>: Watch A Gigantic Looping Solar Prominence

The Solar Dynamics Observatory never fails to deliver absolutely stunning images from the Sun: as of 18:49 UT today, the above picture is what the Sun looked like in the ultraviolet spectrum. The prominence that you are seeing looping ...


bench craft company rip off

Soap <b>News</b>: &#39;Days of Our Lives&#39; Lands Big Fish and More

The holidays are hopping in soap opera world, with new characters moving in and familiar faces returning. Last week, we reported that CBS gave 'The.

Piers Morgan On Facing Off Against Fox <b>News</b>: Part of Rupert <b>...</b>

Larry King's successor talks about CNN's chances against Fox News.

Breaking <b>News</b>: Watch A Gigantic Looping Solar Prominence

The Solar Dynamics Observatory never fails to deliver absolutely stunning images from the Sun: as of 18:49 UT today, the above picture is what the Sun looked like in the ultraviolet spectrum. The prominence that you are seeing looping ...


bench craft company rip off

Soap <b>News</b>: &#39;Days of Our Lives&#39; Lands Big Fish and More

The holidays are hopping in soap opera world, with new characters moving in and familiar faces returning. Last week, we reported that CBS gave 'The.

Piers Morgan On Facing Off Against Fox <b>News</b>: Part of Rupert <b>...</b>

Larry King's successor talks about CNN's chances against Fox News.

Breaking <b>News</b>: Watch A Gigantic Looping Solar Prominence

The Solar Dynamics Observatory never fails to deliver absolutely stunning images from the Sun: as of 18:49 UT today, the above picture is what the Sun looked like in the ultraviolet spectrum. The prominence that you are seeing looping ...


bench craft company rip off

Every so often Warren Buffett goes on TV and calls for higher taxes. This from the guy who’s paid, according to Forbes, perhaps less than $10 million in taxes, a tiny percentage of his $50 billion net worth. I say perhaps because, to the best of my knowledge, Buffett has never made his tax returns public.


Buffett is big-business, with his Berkshire Hathaway holding company stock selling (today) at $119,675.00 per share. Berkshire Hathaway has 1 million shares, which means that Buffett heads a company worth more that the gross national product of a few small Latin American countries.


How does Buffett manage to pay so little in taxes? For one, Buffett, who wants everybody to pay for big-spending big government, donates sizable amounts to tax-exempt philanthropies, such as the Gates Foundation. Forbes, again,

He donates appreciated Berkshire Hathaway stock — which costs him pennies on the dollar — to charity, and receives a fat, juicy tax deduction at the appreciated price without having to pay a capital gains tax on the appreciation. (And, note that the money actually sits in his own charitable organization.) He’s saving income taxes with the ordinary deduction so it’s essentially a tax shelter.


He builds up his massive net worth and doesn’t have to sell stock while deferring capital gains. When he does take a capital gain, it’s at a 15% rate, and he lives in a low-tax state.


Buffett has been known to complain that he paid taxes on the lower-rated capital gains rate rather than the higher income-tax rate. Well, play me the world’s smallest violin, Warren.



Mind you, I’m all for capitalism. America is the greatest country in the world because historically it afforded its citizens the ability to legally prosper and live in abundance. What I object to is billionaires who got their own aiming to prevent anyone else from attaining the same, or more, as they.


This latest time around Buffett was on ABC’s This Week, and told Christiane Amanpour that “People at the high end, people like myself, should be paying more taxes”,



It’s that magical time of the year when brand preferences are being lodged in the consumer psyche by any means necessary, be it free online shipping offers or conventional “doorbuster” style shopper stampedes. (Plus, in an admirable show of advance conditioning, there are those sidebar Four Loko-fueled parking lot brawls.)


But the romance of the brand is a notoriously ephemeral thing, as any casual survey of thrift-store Tickle-Me Elmo and Tamagotchi displays will promptly demonstrate. To do the job right, in this as in so many other realms, we would do well to heed the example of the Germans. As Bloomberg’s Chris Reiter reports, Deutschland’s Big Three automakers—BMW, Mercedes, and Audi (now a Volkswagen property)—have long been locked into a battle for the overtaxed attention spans of the youth market.


Back in February, Audi made a dramatic bid for high-end kiddie allegiance with a $13,300 model of a 1930s roadster, evidently calculating that a Weimar-era collectible is the perfect bridge to the true sturm-und-drang of a privileged adolescence. The model comes replete with “an aluminum frame, hydraulic brakes, seven speeds, leather-clad steering wheel, and oak dashboard,” and nearly sold out of its initial 500-unit manufacturing run, Reiter notes.


The idea behind such lush toy marketing, of course, is to instill intense brand-loyalty among the market’s littlest thought leaders. "Merchandising is important not because you can make huge money with it,” Audi sales chief Peter Schwarzenbauer tells Reiter, “but because it's another means of positioning your brand.” That means that Audi isn’t confining its initiatives to pint-sized drive trains, but is branching out to other durable badges of status, such as a $17,000-plus table soccer game—the idea here, evidently, being not so much to cultivate hooligan-style soccer fandom in the plutocratic young, but rather to inculcate the more genteel and respectable habit of full-scale team ownership.


It’s true that Audi isn’t neglecting more downmarket kiddie consumers in its push, with a $60 branded teddy bear and a $400 red-plastic version of the roadster; here, the functional array of model accessories include “an adjustable rollover bar, hand brake, over-sized tires with Audi-style rims, and padded seats.” But the main event is clearly the scrum for top-line market cachet, which is why Audi’s rivals are stepping up their game. Mercedes, for instance, is planning a spring rollout for “the foot-powered SLS Bobby-Benz, featuring headlights, grill, and rear end similar to those of the company's $183,000 SLS sportscar. The toy SLS features quiet-running tires, an Ackermann steering system with tight cornering for living-room maneuverability, and a steering wheel that absorbs impact to prevent injury in the event of a collision.” The model will boast a comparatively modest $120 asking price—but that loss-leader price point is a small sacrifice when you’re grooming future six-figure auto customers. "All the products have to live up to Mercedes' standards for quality and safety—especially our toys, which are all-time favorites with the next generation of Mercedes-Benz customers," reports Christian Boucke, who heads up the Benz accessories division.


BMW, meanwhile, appears to be the most horizontally minded lifestyle competitor in the luxe-branded market, brandishing a wide panoply of gear from a $460 kid-scale version of its M3 GT2 race car to a pair of $50 rain boots. The Beamer accessories division also turns a healthy 7 percentish profit—even though its brand-keepers, too, stress their real stake is in the longer-term loyalty game. “We are first and foremost a marketing initiative, and the main objectives are to broaden the brand's presence and strengthen loyalty," says Thomas Goerdt, who directs BMW’s distinctly un-German-sounding merchandising and lifestyle unit.


Still, the great risk of too-rampant accessory branding is market saturation—which is why Michel Gabriel, a branding specialist who has advised past Audi projectS, draws the line at underwear, even though “a lot of money can be made from a product” aimed at the intimate end of the brand market.


We can’t help thinking, though, that the Grosse Drei auto barons are selling short tomorrow’s financial titans with mere miniature knockoffs of luxury rides—and not just because their British competitor, Aston Martin, still owns the highest tip of the market with a Volante Junior model fetching a cool $24,000 with a devoted consumer base of young royals—who have duly gone on to modify their fullscale Astons to run on wine.


After all, the lesson of branding the world over is that a truly consummate brand eventually eclipses its mere material referent—hence the power of the glyphlike Nike swoosh (which only cost the firm $35 when design student Carolyn Davidson submitted in in 1971), or the “i”-themed Mac brand interface. Likewise, the business model for Mercedes has involved coaxing lavish multimillion-dollar subsidies from U.S. lawmakers at the same time it’s presented itself as an above-the-fray survivor of the 2008 global auto downturn.


Likewise, BMW has briskly seen to it that influential state congressional delegations have placed its own export interests ahead of the bailed-out U.S. auto industry—while Audi’s corporate parent Volkswagen has at least been candid in soliciting U.S. bailout funds, while also putting in for homeland funds to shore up its rickety loan operation. (Needless to say, this corporate pursuit of public-sector handouts doesn’t seem to have softened VW’s stand on American union drives, since like other foreign automakers, it’s expanded operations in anti-union right-to-work states to evade higher labor costs at home.) All of which is to say that, if doting plutocratic parents are looking to instill formative brand preferences this holiday season, nothing says “heed daddy’s example” like a simple, influence-subsidized government check. And Lord knows that for the properly connected family or industry, a good government kickback is about as hard to obtain as a pair BMW rain boots.




You, valued and valuable reader, are invited to join Chris Lehmann and your other fellow rich people to celebrate the publication of Rich People Things, this Thursday, December 2nd, at Le Poisson Rouge in New York City, from 7 to 9 p.m. There will even be a brief chit-chat with Thomas Frank and Maureen "Moe" Tkacik.



bench craft company rip off

Soap <b>News</b>: &#39;Days of Our Lives&#39; Lands Big Fish and More

The holidays are hopping in soap opera world, with new characters moving in and familiar faces returning. Last week, we reported that CBS gave 'The.

Piers Morgan On Facing Off Against Fox <b>News</b>: Part of Rupert <b>...</b>

Larry King's successor talks about CNN's chances against Fox News.

Breaking <b>News</b>: Watch A Gigantic Looping Solar Prominence

The Solar Dynamics Observatory never fails to deliver absolutely stunning images from the Sun: as of 18:49 UT today, the above picture is what the Sun looked like in the ultraviolet spectrum. The prominence that you are seeing looping ...


bench craft company rip off

Soap <b>News</b>: &#39;Days of Our Lives&#39; Lands Big Fish and More

The holidays are hopping in soap opera world, with new characters moving in and familiar faces returning. Last week, we reported that CBS gave 'The.

Piers Morgan On Facing Off Against Fox <b>News</b>: Part of Rupert <b>...</b>

Larry King's successor talks about CNN's chances against Fox News.

Breaking <b>News</b>: Watch A Gigantic Looping Solar Prominence

The Solar Dynamics Observatory never fails to deliver absolutely stunning images from the Sun: as of 18:49 UT today, the above picture is what the Sun looked like in the ultraviolet spectrum. The prominence that you are seeing looping ...


bench craft company rip off

Soap <b>News</b>: &#39;Days of Our Lives&#39; Lands Big Fish and More

The holidays are hopping in soap opera world, with new characters moving in and familiar faces returning. Last week, we reported that CBS gave 'The.

Piers Morgan On Facing Off Against Fox <b>News</b>: Part of Rupert <b>...</b>

Larry King's successor talks about CNN's chances against Fox News.

Breaking <b>News</b>: Watch A Gigantic Looping Solar Prominence

The Solar Dynamics Observatory never fails to deliver absolutely stunning images from the Sun: as of 18:49 UT today, the above picture is what the Sun looked like in the ultraviolet spectrum. The prominence that you are seeing looping ...


bench craft company rip off

Soap <b>News</b>: &#39;Days of Our Lives&#39; Lands Big Fish and More

The holidays are hopping in soap opera world, with new characters moving in and familiar faces returning. Last week, we reported that CBS gave 'The.

Piers Morgan On Facing Off Against Fox <b>News</b>: Part of Rupert <b>...</b>

Larry King's successor talks about CNN's chances against Fox News.

Breaking <b>News</b>: Watch A Gigantic Looping Solar Prominence

The Solar Dynamics Observatory never fails to deliver absolutely stunning images from the Sun: as of 18:49 UT today, the above picture is what the Sun looked like in the ultraviolet spectrum. The prominence that you are seeing looping ...



















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