There are three main basics in economies of the past, let’s say 70 years ago (these are estimates scrawled on the back of an envelope).

1. Commodity (3%)
2. Goods (17%)
3. Services (80%)

Now there is a fourth.

4. Experience

Here’s how it plays out with Starbucks (again estimated on the back of an envelope).

1. Commodity - bean (pennies)
2. Goods - coffee ($.05 - $.20)
3. Services - paying employees ($.50 - $1.00)
4. Experience - sitting and reading, listening to music, comfy chair ($2.00 - $5.00)

Something to ponder the next time you sit down to the Venti double non-fat-soy-latte. Also are people buying art because they want to talk to the artist? This is what Damien Hirst is banking on.

Check out the book Experience Economy, or wikipedia

Hirst hopes to revolutionise art market with ‘Golden Calf’ - News, Art & Architecture - The Independent

a collection of previously unseen work by Damien Hirst that will be auctioned off this summer in a move that could revolutionise the sale of contemporary art.

A living artist has never before put a collection of brand new work straight on to the open market. Such pieces are usually sold through galleries and art dealers, usually to buyers who are known to them.

This method gives more control to the artist and opens up the sale to a much wider group of prospective buyers. Yesterday, art experts were predicting that the auction – the highlight of which is the gold calf, Hirst’s largest ever formaldehyde work – could mark a turning point in the way artists sell their work. Indeed, Hirst himself hinted that “the world’s changing – ultimately I need to see where this road leads”, adding that such an auction “[felt] like a natural evolution for contemporary art”.

GAAA! 12 million pounds to a single artist…how does Hirst get that market up so high? A true artrockstar, oh how I want to play these games…How about the goal of making the worlds most expensive piece of art…100 million dollars for the platinum skull covered in diamonds? Is it the fact that it’s produced by Hirst, the fact that it’s got material (diamonds and platinum) worth, or branding and marketing, a status symbol to own the most expensive and luxurious object…or is it as Tom Marioni has defined the artist as an individual “getting away with something”?

“…if you take responsibility for what you do, that’s a person’s worth. Just because you have a debt doesn’t mean you’re not valuable…”

-Larry Ippel