Dear Young Agripreneur,
I will teach you one of the lessons I taught the current EYiA students on Friday.
Business is in 1 of 3 areas:
1. Pure Survival (Commodities / Necessities)
Customer motivation: “I will literally die/starve/be homeless without this.”
Examples: staple food (rice, bread), basic housing, generic medicine, tap water, electricity, low-end transportation.
Characteristics: Extremely price-sensitive
Low margins (usually 2% - 15%)
Volume game operational efficiency is the only way to win
It is very hard to differentiate → race to the bottom
Winner’s playbook: Walmart, Ryanair, generic pharmaceuticals, utilities in competitive markets.
2. Pure Ego / Entertainment / Identity (Luxuries & Veblen Goods)
Customer motivation: “This makes me feel good, look good, or kills boredom.”
Examples: nightclubs, fashion (Supreme, Gucci), sports cars, concerts, video games, cosmetics, watches (Rolex), streetwear drops, tiktok creators, luxury travel.
Characteristics: Almost no price ceiling if positioning is strong
Margins can be absurd (50% → 1000% )
Customers sometimes pay MORE when you raise the price (Veblen effect)
Brand/storytelling/community is everything
Winner’s playbook: LVMH, Ferrari, Apple (in many ways), high-end nightlife brands, hypebeast streetwear.
3. Survival Disguised as Ego (Premium Necessities)
This is the golden middle zone - the most profitable and defensible category in the long run.
Customer motivation: “I need this to survive/function… but I’ll pay 5× more if it also makes me feel superior.”
Examples: Bottled water (Evian, Fiji) vs. tap water
Organic / “superfoods” vs. regular food
Apple iPhone vs. a N10m Vertu phone vs. N30,000 palasa phone
Whole Foods vs. local supermarket
Private schools / Ivy League vs. public education
First-class air travel vs. economy
Tesla vs. a basic electric car
Designer drugs / branded pharmaceuticals
Gym memberships (Equinox vs. Planet Fitness)
Characteristics: You take a survival need and wrap it in status, safety theatre, convenience, or moral superiority
Customers rationalize the premium with “health,” “safety,” “productivity,” “ethics,” or “my kids deserve the best”
Margins usually 40% - 200%
It's very sticky once people buy in (cognitive dissonance protects you)
Winner’s playbook: Apple, Tesla, Nestlé (with bottled water), Lululemon, CrossFit boxes, and most “premium” consumer brands.
The Money-Making Insight
The biggest money is made by taking something from Category 1 and moving it into Category 3.
Historical examples:
Water → Fiji/Evian (literally selling survival with a story)
Coffee → Starbucks (beans water became a “third place” and identity)
Fitness → CrossFit / boutique gyms (exercise is free → N300,000/month cult)
Quick Test You Can Apply to Any Business Idea.
Ask yourself:
1. What basic human need does this ultimately serve? (food, shelter, mating, safety, status, etc.)
2. Can I reframe it so the customer feels stupid or low-status for choosing the cheaper/free version?
If the answer to 2 is yes → you have a Category 3 rocket ship.
Have a great weekend.
#FarmerSamson #TheWizardFarmer #SoillessFarmLab #EYiA