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Cardi B did a collab for her “Am I the Drama” merch boxes with WWE. She sold out within minutes. What was her team’s strategy?
The two teams did a collab with two loyal fan bases that rarely overlap (Cardi B + WWE). They created a product that provided options for a underserved market, created a limited supply, and set the price to what they wanted.
Cardi’s collab with WWE created its own product lane. There was no competition for this exact product, which created a pre-loaded demand. Honestly, the only competition would have been another WWE collab merch box with a celebrity with the same fan base as Cardi B. How likely would that have happened? Not likely.
What does that mean for the “Am I the Drama” merch boxes? It sent the demand to the moon!
Then the team decided to limit the available supply. This created a scarcity mindset amongst the WWE and Cardi B crossover fans. If there is no opportunity to purchase the merch boxes in the future, that means they must by NOW and before the supply runs out.
Basic economics tells us if demand is high and supply is low, you can set your price at whatever you want.
When we break it down to the basics, we can see how beneficial thorough financial strategy can maximize your profits without doing extra work.