Charles Antin is a writer and wine enthusiast who attempted to barter a $43 box wine for a single bottle worth at least ten times the price. The process was designed to tell an interesting story and maybe learn if consumers valued wine differently than the merchants who set the prices. In reality it illuminated a core principle of marketing - the true definition of value.

Swap 1: $43 becomes $109

Box wine is typically perceived to be of inferior quality, which lends itself to a tough trade. Mr. Antin realized to start he needed a good product, which in fact does exist in a box wine. More so, he needed a unique selling point to help a buyer get over this perception of box wine inferiority.

Box wine is equivalent in volume to four standard bottles, however the 3-liter box format has a much smaller carbon footprint. Mr. Antin had a Californian friend for whom he figured this sustainable benefit might appeal. Furthermore, this friend was an avid cook who regularly held large dinner parties for which 3-liters of wine would be useful.

Trade 1 complete - A $43 box wine for $109 in four bottles of off-the-grid, artisanally made wines.

Swap 2: $109 becomes $140

The next challenge was to trade four interesting bottles of artisanally made wine that no one has ever heard of. Again Mr. Antin mused who would place value in a wine’s unique story over its brand name? The answer - the wine world’s equivalent to a hipster - a sommelier.

Sommelier’s at good restaurants have already tried everything, including the world’s best wines, so something new with potential excites them. Plus most sommeliers have their own collection, which usually include some pretty good wines they long ago got bored of - perfect trade bait.

Trade 2 complete - $109 in four obscure, artisanal wines for a $140 premier Burgundy.

Swap 3: $140 becomes $245

Trading a high quality wine from a top producer in one of the world’s most prized wine regions seemed a simple task. However, Mr. Antin quickly realized that his attempts at a bottle-for-bottle swap wouldn’t work. In his own words, “It was like my fifth grade friend who tried to trade me his raisins for my Fruit Roll-Up based on the premise that they are both dried fruit.”

In a bottle-for-bottle swap value becomes more of a 1:1 comparison highly predicated on price. People were at most willing to swap for a bottle of equal cost, but wouldn’t knowingly swap a bottle of greater cost for one of less. The conversation needed to return to value, not price.

To do so Mr. Antin again sought to trade one bottle for multiple bottles. He knew someone with a large quantity of a single wine who found value in trading extra capacity for something different.

Trade 3 complete - A $109 premier Burgundy for $245 in five lesser bottles of Burgundy

Swap 4: $245 becomes $290

For the five lesser Burgundies Mr. Antin leveraged the wines’ sense of exclusivity, since they could only be purchased through a charity auction that the vineyard hosts annually in France.

Mr. Antin looked for someone who had attended the vineyard’s charity auction and catered to their sense of nostalgia and appreciation for the event’s history.

Trade 4 complete - $245 in five bottles of Burgundy for a $290 Burgundy Magnum.

Swap 5: $290 becomes $520

For the next swap Mr. Antin found a Burgundy lover - someone who valued the uniquely delicate style of Burgundy wines over non-Burgundy wines. He then leveraged that style preference to trade for four combined higher priced bottles of full bodied wines.

Trade 5 complete - $290 Burgundy Magnum for $520 in four bottles of Rhone reds.

Final Swap: $520 becomes $600

For his final swap Mr. Antin used data. The four bottles of Rhone had all received scores of 90 or higher from an acclaimed wine reviewer. Mr. Antin took these to a wine merchant friend and offered them for a bottle of extra stock that didn’t appeal to the merchant’s client base.

Mission complete - $520 in four Rhone reds for a $600 Grand Cru White Burgundy

Knowing The Price Of Everything And The Value Of Nothing

How does a $43 box of decent wine become $600 of elite wine from a renowned producer? By focusing on value over price.

In each instance the recipient of Mr. Antin’s swap may not have received an equal dollar value to what they gave, but they were satisfied because what they received served a personal need or desire that existed outside of price.

Mr. Antin conveyed that value by understanding the unique benefits of his products and positioning them in a way that appealed to the emotional sensibilities of his buyers. The one time he strayed from that approach he got nowhere, because when a proposition is based on price value alone people will always look for a deal.

Brands provide value that appeal to both emotional and physical sensibilities. Products only provide physical benefits that can more easily be valued by price. Build brands based on total value, don’t sell products based on price value.