This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Apple's Black Friday Statement

The same general principles apply at LULU, TSLA, SBUX and WFM.

These companies can aggressively maintain premium pricing because:

  • They know their relatively affluent markets and do such a tremendous job connecting with them.
  • They make smart real estate decisions, placing stores where this affluence hangs its hat (and/or vacations!).
  • They provide unique in-store environments.
  • They have exclusive or semi-exclusive premium products that tap into consumer psychology and/or are really better than the rest. It's a powerful blend of perception and reality.

LULU should not be able to sell $150-$200 yoga apparel. Sure, it's well-made, but it's all psychological. There's lots of well-made yoga apparel out there at more "reasonable" prices.

Tesla doesn't just have an electric car, it has one that's faster than a freaking Porsche. And it's the Motor Trend car of the year.

Starbucks can charge relatively absurd amounts of dollar bills for a cup of coffee -- and really ding you with the add-ons -- because it provides all types of cool experiences -- from its well-known in-store vibe to its emerging mobile traffic push and presence.

Whole Foods might be the best example. We like to think it shed its "Whole Paycheck" image, but that's all perception.

I started going to Whole Foods more frequently when it made an aggressive push with its "Everyday 365" value line. This strategy really did result in lower prices on key items throughout the store. But, again, it's so psychological.

Unless you're ultra-disciplined and go grocery shopping after overeating on Thanksgiving, your total bill at checkout is as big as, if not bigger than it ever was thanks to high-margin items ranging from wine to cheese to candy to hummus.

These are the companies that own the upper-mid to high-end consumers that matter. They rule mindshare more than they do marketshare.

The only name I might hold back on buying into 2013 is TSLA. The others will blow out their respective holiday quarters.

At the time of publication the author had no position in any of the stocks mentioned.

Rocco Pendola is TheStreet's Director of Social Media. Pendola's daily contributions to TheStreet frequently appear on CNBC and at various top online properties, such as Forbes.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $124.25 0.00%
LULU $63.10 0.00%
SBUX $93.02 0.00%
TSLA $187.59 0.00%
WFM $51.42 0.00%

Markets

DOW 17,698.18 -77.94 -0.44%
S&P 500 2,059.69 -8.20 -0.40%
NASDAQ 4,880.2280 -20.6570 -0.42%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs