Name brand is not only for status seekers and stuck up people.
Name brand is for people who are about disruptive money.
However, before I go any further, I will say that buying name brand for status is a losers game because there’s always someone with more money, more toys, and more clout than you. It’s a game rigged for defeat.
So why buy name brand?
There’s a few reasons…
Let’s think of some hypothetical scenarios.
Your identity gets stolen, and you can’t access your bank account. Which these days is likely to happen with more and more people getting scammed at ATMs, and fished for information. Or you’re traveling abroad and someone steals your passport wallet.
…if you’ve got name brand stuff back at the hotel or at your residence, you can easily liquidate that into cash.
Imagine the opposite scenario.
Imagine just owning cheap-o deap-o stuff that no one wants. Then your screwed.
The number one reason to buy name brand:
Name brand holds it’s value.
You’ve heard of guns holding their value, right? Well other items in this world also do the same. Macbooks, Ray Ban sunglasses, Whirlpool washers, Nike shoes, Beats by Dre, etc. I could spend all day naming name brand companies.
The truth of the matter is – you could put up one of these items for sale on Craiglist and find a buyer within hours.
Of course you’re not going to get 100% of your money back in most cases. A more reasonable figure is somewhere around 50-90%.
That’s a whole lot better than trying to re-sell some cheap no name knockoff crap.
Macbooks on Craiglist are still selling well over 500$ and these models are more than 2 years old.
Imagine trying to get that kind of money for your crusty old Dell PC. The bottom line is, with name brand you have a higher re-sale value.
Name brand is easier to sell
In fact, you don’t have to be a salesmen with name brand because everyone knows the reputation, quality, and prestige that comes built in with these products.
It’s easier to get your money back.
One time I put up a Fender Telecaster on Craiglist and easily traded it with a guy who gave me a Marshall amplifier. It was a great deal.
Some items actually increase with age such as, wine, guitars, whiskey, and vintage cars. I’m not into most of that, so I’ll talk about what I do know: guitars.
If you bought a Fender Stratocaster back in 1970’s it’s easily worth over 7,000$. The same goes for Les Paul. This is a low-ball figure, but I’m sure these days they are selling for way more.
You can also think of name brand as a form of money that you have lying around. The truth is, if you’re ever in a tight spot and you’ve got a bunch of name brand stuff, you’re in a way better position than a person who just has a pile of crap cheap-o deap-o China fall-a-part wares.
With made-in-China crap you have to BE a salesman. You have to say things like, “Ok I’ll give you these 2 shirts and throw in the lamp for 5$.”
Hopefully, I’ve given you a few ideas at this point.
Why you shouldn’t show off name brand stuff
I’ve covered status and why its a fools errand to chase it.
With name brand stuff comes another problem. And that is theft.
Theft can come from anyone even your own family members. Some people just don’t want you to be successful and enjoy what you have.
Rather than work for it themselves they take the easy way out and steal.
Be careful who your friends are.
I used to own a rare Jimi Hendrix Voodoo Stratocaster that was worth around $2000 at the time I bought it.
This was one of the most expensive purchases in my entire life. At the time I had a couple of friends who I showed it to.
Well, one day I was out of town and I came back to find the door on my apartment was broken down.
My heart started to race, as I walked in and found drawers and cabinets opened.
The guitar was gone. I called the police, filed a report, and I’ve never seen it since.
I told this story to a few people and was surprised that most of them said something like, “Yeah, it was probably one of your friends.”
From other witness who saw the guy, they said that he basically went straight for my apartment and they thought he was one of my friends. He knew exactly what he was doing.
So my warning is to be careful who you show your stuff too.
For more tips on disruptive money, I recommend checking out Glendon Cameron’s course “Disruptive Money.”