Page 101 - Midas Touch

Rippers started out in the surfing and sporting goods industry. The
problem was that the surfing and sporting goods business was soon
crowded with products similar to my Ripper products, all commodities,
not one brand leader. When you’re a commodity, then price matters. Since

my competition was just like me, a commodity, then retailers beat all of us
up on price. Why should they pay more for my product when they can get
the same thing from the next guy for a buck less?

When we entered the rock-and-roll business and began capitalizing on
brands, people paid the price we asked. All the stores asked was, “How
soon can you get us some product?” Pink Floyd didn’t license their
products to just anyone. A product carrying the Pink Floyd brand was

worth more than one that didn’t.

Becoming a licensee of mega rock bands gave us exclusivity in a massive
worldwide market. Our only competition was the brand pirates, the little
criminals who stood just outside the concert entrances, selling their
pirated, non-licensed products to rock fans as they left the concert. These
little pirates were no different than the person who sold me my fake Rolex.

Nervously, they would sell their pirated products, looking over their
shoulders, hoping to make a few bucks before the guards at the concert ran
them off the property. Just like criminals, they were always waiting to be
busted.

At the same time, my company was selling legally licensed rock-and-roll
products inside the concert halls. We were also in music stores and
department stores all around the world. We were in legitimate businesses

because we were legitimate. We were not pirates. My five-dollar Rolex
was coming back to me and proving to be a very important lesson about
the importance of being legitimate, playing by the rules, and harnessing
the power of real brands.

It Wasn’t Just about the Money
Working with the rock bands gave me insights into the relationship

between a band, their music, and their customers. It was a relationship, not
just a money transaction. Because the bands had a relationship with their
customers, selling licensed products was easy. In fact, we didn’t have to do
much selling at all when people did a lot of buying. At concerts, fans
would line up to buy anything with the band’s name printed on it. “Line