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 paraphrased from The Experience Economy).
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
Published by Pete Ippel
Pete Ippel, the son of a dancer and a musician, was born in Oak Park, Illinois and has been surrounded by the arts since birth. He moved to Morris, Illinois in 1989 and started to participate in athletics rather than dance. After high school, Pete attended Cornell University where he received a BA in psychology and a BFA in photo / digital art making. He continued to follow his sporting dreams in the high jump, which culminated in a school record leap of 7 feet 1/2 inch in 2001.
In May 2004 he attained an MFA degree in the New Genres department of the San Francisco Art Institute. Presently Pete is a practicing artist whose work is in numerous private collections and has been exhibited in New York, California, and internationally.
Mr. Ippel resides in Working Artists Ventura, a sustainable artist community in southern California. In addition, he teaches art, is a web developer, an active blogger, and still high jumps from time to time.
As a passionate problem solver and a pragmatic optimist, Pete’s art and his life are full of exciting challenges.
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