Yeti coolers why so expensive

So, how are YETI coolers able to carry that high price tag? Highly effective marketing. And their campaign to ramp up the population of YETI nation is just getting started. The company recently hired the former head of marketing for Calvin Klein to be its Chief Marketing Officer.

And the company's effective use of the all-American, rugged, outdoor lifestyle keeps customers coming back for more.

World globe An icon of the world globe, indicating different international options. Get the Insider App. Click here to learn more. A leading-edge research firm focused on digital transformation. Good Subscriber Account active since Shortcuts. Account icon An icon in the shape of a person's head and shoulders. It often indicates a user profile. The walls and roof of YETI coolers are two and three inches thick.

This thick layer of insulation is what keeps the heat out and the cool in. The extended ice retention is one of the reasons why YETI is so popular today.

However, competing brands like Orca, Canyon, and Pelican now have models that are able to retain ice for 7 to 10 days. You should know that in order to get the maximum ice retention time, you will need to prepare your YETI cooler before use. Preparation here means pre-cooling your YETI with ice bags a day prior to its use. If Yeti coolers are kept in warm places, the insulating foam will start out warm thereby melting whatever ice is inside.

If not prepared before use, you will get an ice retention time of 2 days max. A highly effective marketing strategy is probably the main reason why YETI is so expensive even in the face of various competing brands. YETI was smart enough to control their distribution channels and keep them watertight. They preferred to sell to small local stores rather than to giants like Wal-Mart and Costco.

In the past when YETI discovered that Costco was selling their coolers, they tracked the source and shut it down. In the stores where the YETI cooler is sold, they do so at a very thin margin, therefore making it almost impossible for those stores to offer discounts or risk losing money. The high cost of the YETI coolers also make them more profitable to small businesses.

They could make a good profit margin from selling just 2 YETI coolers compared to what they would make from selling five or ten regular coolers. This closely monitored distribution gives YETI total control over its pricing. The same features that distinguish a YETI from regular coolers are also part of the reason why they are so expensive.

Basically, what the YETI brand is selling is 5 to 7 days of ice retention, heavy insulation, and an almost indestructible cooler. If you bring all these together, the YETI brand is selling a cumulative experience and not just a single item. Paying for that experience is always worth more than just an item. Over the years, the brand has been able to justify its expensive price through the experience it offers.

This is also evident in their ads. Most regular coolers do not have warranties at all. This means that within five years of purchase you could have any of the parts replaced if they go bad. If you are familiar with warranties you will understand that it costs the manufacturer money in shipping new coolers or replacement parts to customers who have a problem with their purchase. This also explains why some companies will require the customer to pay some amount for extended warranties.

The result? A very difficult box to break. So what makes the Yeti cooler most expensive? Well, they got in there first. They pioneered the process. When Roy and Ryan Seiders, the brothers behind Yeti, sold their first box market back in , everyone was used to coolboxes falling apart in their hands after one or two uses. It was a complete pain. Nowadays, every cooler company worth their salt uses the same roto-molding technique. But Yeti had the headstart and they made their advantage stick, bigtime.

But what do they all mean? Whether it was a job that needed doing that well is a completely different question. Here is a nice little marketing video from Yeti, showing their cooler taking a good beating from a Grizzly. Yes, ok, cleverclogs. You know what we mean. A Yeti cooler is a very trendy bit of kit.

The marketing team at Yeti has done an amazing job to turn a large plastic box into the must-have item for the Instagram-conscious outdoor enthusiast. They have become the go-to lifestyle brand for the discerning outdoorsman and woman.

Yeti is so expensive because people are willing to pay for it.