In the world of sports, everyone is extremely competitive and the desire to be better than your competition is what ultimate drives you to reach your potential. Therefore, when a product backed and worn by many professional athletes such as Kobe Bryant claims it can magically “improve strength, balance and flexibility” it is sure to draw hordes of attention.
$100 for 10 stickers. Sounds about right.
At first, people bought into the idea because the concept was so mysterious; the hologram contained in the wristbands are supposed to be set with a special frequency that changes and harmonize the natural frequency of your body, thus ‘improving your athletic ability’. The company was making big bucks through this clever marketing scheme, I even went out and bought one for $45, an extremely stupid decision on my part. The company ended up earning $52 million in revenue during its peak year, which is incredible feat for something as simple as a wristband scam.
However, once Power Balance was exposed by the ACCC that they had no research to prove that their product could provide positive benefits, they faced much scrutiny. Following this, Power Balance was forced to declare the truth to the public, by admitting that they engaged in “misleading conduct”, and then provided full refunds to any customers who felt they had been deceived and eventually bankrupted due to the countless lawsuits.
Notice how the $122 piece of silicone is “Out Of Stock”
Even though the brand can no longer be seen in the positive light,their combination of clever marketing schemes and relatively capable management allowed them to succeed for quite a while. The makers of Power Balance were able to sell worthless pieces of plastic and earned millions of dollars of revenue, which demonstrates their mastery in doing business. Although their behaviour is highly unethical, the brand is a prime example that all you need is a intuitive or revolutionary idea to launch a successful business venture.