thank you wow it’s been extraordinary
the evening we learned how our law
enforcement behaves after hours we learn
how to cure diseases we learn how our
scientists fail all the time why they
refuse to tell us and we’ve learned
about elephants and jewelry making and
what am I going to talk about there’s
nothing left so let’s talk about making
cookies here’s how I make them put your
dough together right then you roll it
out you can add chocolate chips or
raisins whatever you like and then we
put them into these shapes that we enjoy
and then we stick them in the oven by
the way only about twenty-five percent
the rest gets eaten before it makes it
to the oven and if you are lucky enough
to make it through the oven then we look
for purpose in our lives freshly out of
the oven and therefore we’re looking for
enlightenment and maybe we do that
through tradition of staying on the
circle or tribe or it could be your
perhaps this culture that’s a good one
and maybe dudes new culture he’s
actually a wonderful artist works out of
London so what is your mission going to
graduate pretty soon and as we go
through this journey in our lives on the
daily basis we have all of these
emotions like tonight your sadness or
anger there’s anxiety there’s an
excitement
hundreds of these emotions on a daily
basis and what happens with these
emotions is the memorable ones end up
going into the neocortex of your mind
which is the largest part of your brain
and they technically become your
operating system in a sense our memories
and what we experience on a daily basis
really become who we are you really
think about it so if you have wonderful
memories and good things that go on then
technically you are a happier person
seems to make sense but as we get older
we all have this invisible backpack we
carry around no wonder a lot of the
older people are kind of looking like
this they carry all this stuff around
right so we carry a lot of that around
with this but at the end really all we
have is our memories right very
important for us so whether the good bad
or ugly they are our memories and those
experiences helped us create who we are
and what we do so therefore good
decisions come from experience right and
experiences come from making a lot of
bad decisions as Alex does okay so
creativity is really the accumulation of
all of these things that we experience
and that’s what we put toward so
imagination i believe is as important as
literacy it’s not necessarily about what
we learn out of a book it’s what we do
with it and how we figure out to do
different or maybe put a different spin
on it
imagination is the new currency it does
have value and I’ll talk about this a
little bit more down the line so Picasso
said that altering are born artists
problem is to stay as an artist it’s an
interesting one because we are all born
with creativity inside of us and when
you do an art project or your hand a
brush or color pencils or a young child
it’s amazing the stuff they come up with
because they have no fear or
expectations they just let it all flow
out so starting your education today
2065 and we truly don’t know what the
world looks like five years from now I
mean look how rapidly things are
changing it’s in my own lifetime just in
the last five years it’s incredible so
32 people in the world are children and
how do we know that they want to be like
us what makes us so sure that even our
education system is the way that they
want to learn and be educated and deal
with the world I don’t know if we have
the biggest changes in the economy we
don’t even know about they’ll be
completely different if we base it on
what’s happened in our world the last
ten years so therefore play stay
creative use your imagination and play
because that’s where the newness comes
from I want to share a little history
with you so in this country we spent
about the last 60 years and until very
recently building things quicker and in
some ways faster than any other place on
the planet as a matter of fact after
world war two we were the only act in
town because Europe was destroyed Japan
was destroyed Russia was destroyed so
the for the rest of the world they had
to buy the goods and services from us to
survive I know this I grew up in
Michigan I worked in some of those car
factories when I was a teenager well
that’s how we built our middle class we
all drove one of these or maybe it was a
Ford we all stayed here that was the
only option and they didn’t have a spa
but the bed had this little coin thing
you put a quarter in and it vibrated
that was the spa and we were happy we
all shopped here remember my dad going
and putting tires on his car and then my
mom would buy lingerie and the fifth
floor we don’t shop like that anymore do
we we all ate here we were happy this
says sold over 1,000,000 this is an old
slide I think they’ve sold a few more of
those and we came up with some great
products lately spam this sells in four
hundred countries around the world as a
matter of fact in Hawaii you can buy it
week and everything we actually didn’t
discover to cam Napoleon did during the
war but when we got ahold of this stuff
we learn how they can everything so
everything went into inside of a can
this was our dinner well balanced meal
right it was technology basically stuck
this stuff in the oven give it a good 15
minute and he had the perfect meal a lot
of us grew up this way because we were
so busy making stuff and trying to build
our middle class right so then guy named
Percy Spencer invented the microwave
because now we didn’t have to wait 15
minutes we can just stick it in this box
and zap it and within a couple of
minutes we had our meal by the way he
worked for the government and he was a
scientist on I like Alex
and he discovered this stuff this is
true go look it up he was in a lab
working on a project and he had a candy
bar in his pocket that literally melted
from radiation and other than ruining
his suit he figured out what to do with
the microwave so this shaved about 12
minutes out of our lives which was
really good at the time so then we would
go here and eat and at some point we
thought I don’t want to order like a
large coke and a big mac and a fry it
takes too long so they came up with this
combo menu because we didn’t have time
we were busy so you just walk up to the
but then one day we thought man I don’t
even want to get on my car just too much
work to walk in here in an order number
so we invented the drive-thru then we
would walk up to these beautiful little
speakers and repeat everything 11 times
right and then you go up to the window
and somebody Chuck’s the burger at you
because we were so busy we did a number
to our food system and I think basically
this slide sums it up sort of setup we
maxed out we maxed out when he came to
I’ve got three boys they all went to
sage consumption machines that’s what we
were producing right so then all of a
sudden our focus was greater with
objects than relationships happen all of
our country but then some really smart
developer came up with a wonderful idea
it’s called the storage unit where you
can take all your stuff you can rent one
of these things and you can put it
inside you get a key and lock the stuff
in so nobody would get to it then you
would go out and you would buy more
stuff reload the storage unit American
invention did you know the average
marriage in eight point seven years and
the average mortgage is 30 years for how
for home so technically we have a better
relationship with our mortgage than we
do it our spouse
so then as Americans four and a half
percent of the world population we ended
up consuming about twenty-five percent
of all the dudes and services it’s
pretty good if this was the Olympics we
get the gold medal so when they talk
about the economy gone bad maybe we just
maxed out we bought everything there was
we ate everything there was maybe we
just maxed out it took this 300 years to
get there by the way but maybe we maxed
out problem is that as we went through
this everything in this country became
formula oriented our food system or a
car system everything all of our
products and goods problem with formulas
are that they have no empathy they have
no emotion they have no heart somewhere
along the line we lost touch with human
reality who we are and what’s important
to us so I’m not a demographic another
number i’m not a barcode i think this
next generation definitely relates to
that we’re not robots were people with
feelings this is albert einstein so i
will promise you that mass culture in
America is basically breaking down and
when it breaks down it doesn’t just
dissipate it breaks down into these
smaller bite bites so we’re going from a
mass nation to a niche nation
it’s happening right now as a matter of
fact one size doesn’t fit all anymore
[Laughter]
we’re not sheeps it’s about
personalization customization
localization and not a modernization
localization is a big word in all of our
businesses not just real estate I will
promise you that every CEO and board
member of every national food chain in
America whether it’s mcdonalds or Apple
B or cheesecake factory is trying to
figure out how to grow because they’re
maxed out people don’t necessarily want
another Apple be it’s not a game changer
when you come out of high school year to
brand not somebody else is your brand
let me ask you a question would you
rather buy your tomatoes in a grocery
store where they’ve been shipped out
genetically modified shipped out from
New Jersey nothing against New Jersey
not as nice as California wrapped in
some silicone material that’s going to
kill you and the environment or would
you rather buy your tomatoes from your
local farmer where he actually hands you
the tomato and he tells you about the
growing season and talk to you about the
all sudden exciting about buying the
tomato it’s what the relationship isn’t
it and by the way who cares if it costs
an extra ten cents nobody raised their
hands I mean press is that sexy or is
that sexy it’s called Oh people invent
stuff we can’t stop them the government
tries to stop us from inventing things
that’s what our first speaker was up
against they wouldn’t let her invent and
come up with new solutions it’s a real
problem but people are going to continue
so curiosity does matter curiosity
matters curiosities was made this
country advance we’re not about the
labor force anymore we’re about
innovation imagination that’s what put
us ahead we we meant to technology we
invented the automobile we met at the
airplane imagination and creativity is
the future the next generation of goods
and services are going to be from a lot
of other local makers smaller companies
not necessarily the big companies how
about this guy guy comes from paypal
develops this electric car you mean to
tell me the GM who had the world car
market for 70 years couldn’t figure out
how to come up with electric car what
about ford or those dudes in germany
that make mercedes they couldn’t figure
it out does it make sense Scott didn’t
go to auto school and look at the
valuation it’s like four times or three
times higher than Christ we’re right
innovation how about this guy game
changer many places don’t like them but
it makes sense because people decide you
guys been in a cab ride to LAX sitting
back of a cab it’s got that little
window you can look through it feel like
I’m in jail
it should pay me to write up their uber
makes sense so in my business the
biggest problem these days is parking I
will tell you twenty percent I’ll go on
record of our customers now ober cause
they all drink because it’s easier it
makes sense it’s actually cheaper how
about these guys now you can make money
renting your home while you’re on
vacation pretty good idea the hotel
industry hates them this is a matter
they’re going to keep growing look at
the valuation they don’t even run any
real estate interesting now computers
have no imagination people do I’m
convinced I really am convinced the
other thing that I’m convinced about is
that what can be accomplished on the
computer has less and less value when we
go to do our taxes or in our
organization they set up to India they
really do because you have MBAs they’re
working for five dollars an hour we
can’t afford the war for five dollars an
hour anything that could be done a
computer has smaller value you can’t
create the imagination of a computer
necessarily
[Music]
good example is what’s happened in China
they can make everything but they
haven’t really designed or creating
anything that I’m aware of there you go
this guy was pretty smart look what
happened to him Oh jump okay this is a
guy that’s really creative he really
uses his imagination right if you get an
opportunity to take a bite of the Apple
don’t just chomp away at it create
something make the world map or
something right creates value it’s not
just about the Apple anymore is it I
think they messed up on Africa a little
no nobody will know okay have no fear
some of the earlier speakers talked
about this take some risk it’s worth it
it does pay off right Alex hey I have to
tell you a story so down in mission
viejo mall there was a Saks Fifth Avenue
so one day it was gone and I heard
forever 21 went in there so my original
courier was in the action sports
industry I was president of Quicksilver
here locally and so I was curious Wow
50,000 square foot of forever 21 it’s a
lot of junk right so got in my car went
down to Mission Viejo I walked in Wow it
was true 50,000 square foot of junk as
I’m pontificating my way through the
aisles there’s this young lady and this
young man and there was a pair of jeans
hanging there that was for 799 and so
wow I’ve made goods all over the world
really have and I had no shame because
we were looking for price and value I
honestly don’t know where to go to make
a pair of jeans put the buttons to snap
the zippers pay somebody to build it pay
for the fabric put it on the ship ship
it over here pay to duty put in a truck
take it to my warehouse put in my system
pay somebody take it upstairs put it on
the hangar take it up advertise it and
sell it for 799 and make some money
it’s got to be an easier way but that’s
what they did by the way I could tell
the young couple weren’t married because
they look happy but then I sort of had a
headache after I went through this
forever 21 and as you walk out of this
forever 21 there’s a coffee shop outside
right so I went to get my cup of coffee
oh well what do you know the young girl
and the guy the happy couple or ordering
coffee right in front of me and she
ordered a macchiato a lot a ba ba ba ba
ba ba thing looks like Mount Fuji on top
right there was coffee in there
somewhere 695 so now I’m like whoa whoa
whoa whoa whoa Hugh spent seven 9900
pair of jeans and she paid almost seven
dollars for a cup of coffee it’s really
interesting but then I realized the fact
that she gets to have that cup of coffee
with her boyfriend who’s trying to marry
her and the time they spent together and
that experience has higher value than
that pair of jean that she bought for
799 that’s going to make her butt look
good for two weeks and then she’s going
to watch it and it’s going to
disintegrate but the memory of that cup
of coffee is going to stay with her
especially if he proposes
right so it’s called intrinsic value so
we were thinking about product in
business school nobody talked to us
about there’s a line item for culture or
there’s a line item for intrinsic value
but these have these things have value
it’s kind of like you know you go to
Italy and they all have three hour
lunches you just go what the hell don’t
these people work and then you really
realize its intrinsic value they know
how to live and high shop is an ugly
American i ordered my first course and
second course dessert and all can you
bring my coffee too and they just like
got it I get out of here because I don’t
want to wait to order the coffee they
have three hour lunches why went to buy
one of these things I guess it was like
10 years ago or so I show up at the
store and I noticed there was a camera
in it microtel I don’t I already have a
nice camera I want a phone I feel like
you know I can be a creative guy but
like I just didn’t get the camera thing
in your phone like this is a camera and
this is a phone I was very happy with
that
in my mind I just kind of imagined
why do I need a camera in my phone it
just seemed very retarded today I use my
camera more than my phone I hate talking
on the phone I look at it I see who’s
calling me and I put delete I use it to
text you use it for email I can turn the
lights on and off at my house right now
I like to do that because it freaks my
wife out it I tell her honey if you want
the lights to come on just clap and I
hear on the phone clapping and then I
just hit that button Oh
[Music]
totally worth my AT&T monthly coverage I
can turn my Jacuzzi on and off that
freaks are a tooth I use it for
everything except the telephone so now
imagine that somebody walking into an
apple store and says that i’m looking
for a telephone with a camera in it like
nobody talks like that i tried it didn’t
feel good my point is we expected it’s
called a multi-layer experience it’s
more like what do you mean it doesn’t
have a camera what I mean it doesn’t
turn my Jacuzzi on but you’re buying a
phone but we expected to do all these
other things this next generation of our
consumers expect these things it’s like
when I was growing up and you bought a
new automobile power steering was an
option remember that because an extra 80
bucks i’m not sure if it was worth it
but power windows was an option we used
to have to do any of these things to get
the window today you kind of expect it
that’s what’s happened to products and
goods so now people want content in
their lives okay I see a little bit of
this reversal of roles going on what’s
interesting is that people in other
parts of the world have been doing yoga
for about four thousand years we open
one of the first yoga studios in Orange
County at the camp and i remember when i
went to the counter at the city hall and
they said well what is it it wasn’t in
the book is it a school i said oh no no
it’s not at school I didn’t want it to
be a school because I couldn’t park it
and I said well is it a gym oh no it’s
not a jump
well what is it it’s yoga what are you
doing stand on your head put it in the
book isn’t there a standing on your head
section so today this is one of the
largest practices in America again he
took as 300 years to figure out so but
maybe what this means is we’re becoming
more spiritual and focusing on things
that are a little bit more important to
us and perhaps consumption is going
somewhere else maybe we bought
everything already and other things are
more important to us than just buying
stuff right this is a parking lot of the
camp I just have to show you the parking
lot put a plan together please work hard
every day please talking to the parents
inspire please I believe in this we can
change the world I know that this next
generation for sure can change the world
they’re going to cure all diseases they
will they will and remember imagination is not an end game but it’s a journey
the evening we learned how our law
enforcement behaves after hours we learn
how to cure diseases we learn how our
scientists fail all the time why they
refuse to tell us and we’ve learned
about elephants and jewelry making and
what am I going to talk about there’s
nothing left so let’s talk about making
cookies here’s how I make them put your
dough together right then you roll it
out you can add chocolate chips or
raisins whatever you like and then we
put them into these shapes that we enjoy
and then we stick them in the oven by
the way only about twenty-five percent
the rest gets eaten before it makes it
to the oven and if you are lucky enough
to make it through the oven then we look
for purpose in our lives freshly out of
the oven and therefore we’re looking for
enlightenment and maybe we do that
through tradition of staying on the
circle or tribe or it could be your
perhaps this culture that’s a good one
and maybe dudes new culture he’s
actually a wonderful artist works out of
London so what is your mission going to
graduate pretty soon and as we go
through this journey in our lives on the
daily basis we have all of these
emotions like tonight your sadness or
anger there’s anxiety there’s an
excitement
hundreds of these emotions on a daily
basis and what happens with these
emotions is the memorable ones end up
going into the neocortex of your mind
which is the largest part of your brain
and they technically become your
operating system in a sense our memories
and what we experience on a daily basis
really become who we are you really
think about it so if you have wonderful
memories and good things that go on then
technically you are a happier person
seems to make sense but as we get older
we all have this invisible backpack we
carry around no wonder a lot of the
older people are kind of looking like
this they carry all this stuff around
right so we carry a lot of that around
with this but at the end really all we
have is our memories right very
important for us so whether the good bad
or ugly they are our memories and those
experiences helped us create who we are
and what we do so therefore good
decisions come from experience right and
experiences come from making a lot of
bad decisions as Alex does okay so
creativity is really the accumulation of
all of these things that we experience
and that’s what we put toward so
imagination i believe is as important as
literacy it’s not necessarily about what
we learn out of a book it’s what we do
with it and how we figure out to do
different or maybe put a different spin
on it
imagination is the new currency it does
have value and I’ll talk about this a
little bit more down the line so Picasso
said that altering are born artists
problem is to stay as an artist it’s an
interesting one because we are all born
with creativity inside of us and when
you do an art project or your hand a
brush or color pencils or a young child
it’s amazing the stuff they come up with
because they have no fear or
expectations they just let it all flow
out so starting your education today
2065 and we truly don’t know what the
world looks like five years from now I
mean look how rapidly things are
changing it’s in my own lifetime just in
the last five years it’s incredible so
32 people in the world are children and
how do we know that they want to be like
us what makes us so sure that even our
education system is the way that they
want to learn and be educated and deal
with the world I don’t know if we have
the biggest changes in the economy we
don’t even know about they’ll be
completely different if we base it on
what’s happened in our world the last
ten years so therefore play stay
creative use your imagination and play
because that’s where the newness comes
from I want to share a little history
with you so in this country we spent
about the last 60 years and until very
recently building things quicker and in
some ways faster than any other place on
the planet as a matter of fact after
world war two we were the only act in
town because Europe was destroyed Japan
was destroyed Russia was destroyed so
the for the rest of the world they had
to buy the goods and services from us to
survive I know this I grew up in
Michigan I worked in some of those car
factories when I was a teenager well
that’s how we built our middle class we
all drove one of these or maybe it was a
Ford we all stayed here that was the
only option and they didn’t have a spa
but the bed had this little coin thing
you put a quarter in and it vibrated
that was the spa and we were happy we
all shopped here remember my dad going
and putting tires on his car and then my
mom would buy lingerie and the fifth
floor we don’t shop like that anymore do
we we all ate here we were happy this
says sold over 1,000,000 this is an old
slide I think they’ve sold a few more of
those and we came up with some great
products lately spam this sells in four
hundred countries around the world as a
matter of fact in Hawaii you can buy it
week and everything we actually didn’t
discover to cam Napoleon did during the
war but when we got ahold of this stuff
we learn how they can everything so
everything went into inside of a can
this was our dinner well balanced meal
right it was technology basically stuck
this stuff in the oven give it a good 15
minute and he had the perfect meal a lot
of us grew up this way because we were
so busy making stuff and trying to build
our middle class right so then guy named
Percy Spencer invented the microwave
because now we didn’t have to wait 15
minutes we can just stick it in this box
and zap it and within a couple of
minutes we had our meal by the way he
worked for the government and he was a
scientist on I like Alex
and he discovered this stuff this is
true go look it up he was in a lab
working on a project and he had a candy
bar in his pocket that literally melted
from radiation and other than ruining
his suit he figured out what to do with
the microwave so this shaved about 12
minutes out of our lives which was
really good at the time so then we would
go here and eat and at some point we
thought I don’t want to order like a
large coke and a big mac and a fry it
takes too long so they came up with this
combo menu because we didn’t have time
we were busy so you just walk up to the
but then one day we thought man I don’t
even want to get on my car just too much
work to walk in here in an order number
so we invented the drive-thru then we
would walk up to these beautiful little
speakers and repeat everything 11 times
right and then you go up to the window
and somebody Chuck’s the burger at you
because we were so busy we did a number
to our food system and I think basically
this slide sums it up sort of setup we
maxed out we maxed out when he came to
I’ve got three boys they all went to
sage consumption machines that’s what we
were producing right so then all of a
sudden our focus was greater with
objects than relationships happen all of
our country but then some really smart
developer came up with a wonderful idea
it’s called the storage unit where you
can take all your stuff you can rent one
of these things and you can put it
inside you get a key and lock the stuff
in so nobody would get to it then you
would go out and you would buy more
stuff reload the storage unit American
invention did you know the average
marriage in eight point seven years and
the average mortgage is 30 years for how
for home so technically we have a better
relationship with our mortgage than we
do it our spouse
so then as Americans four and a half
percent of the world population we ended
up consuming about twenty-five percent
of all the dudes and services it’s
pretty good if this was the Olympics we
get the gold medal so when they talk
about the economy gone bad maybe we just
maxed out we bought everything there was
we ate everything there was maybe we
just maxed out it took this 300 years to
get there by the way but maybe we maxed
out problem is that as we went through
this everything in this country became
formula oriented our food system or a
car system everything all of our
products and goods problem with formulas
are that they have no empathy they have
no emotion they have no heart somewhere
along the line we lost touch with human
reality who we are and what’s important
to us so I’m not a demographic another
number i’m not a barcode i think this
next generation definitely relates to
that we’re not robots were people with
feelings this is albert einstein so i
will promise you that mass culture in
America is basically breaking down and
when it breaks down it doesn’t just
dissipate it breaks down into these
smaller bite bites so we’re going from a
mass nation to a niche nation
it’s happening right now as a matter of
fact one size doesn’t fit all anymore
[Laughter]
we’re not sheeps it’s about
personalization customization
localization and not a modernization
localization is a big word in all of our
businesses not just real estate I will
promise you that every CEO and board
member of every national food chain in
America whether it’s mcdonalds or Apple
B or cheesecake factory is trying to
figure out how to grow because they’re
maxed out people don’t necessarily want
another Apple be it’s not a game changer
when you come out of high school year to
brand not somebody else is your brand
let me ask you a question would you
rather buy your tomatoes in a grocery
store where they’ve been shipped out
genetically modified shipped out from
New Jersey nothing against New Jersey
not as nice as California wrapped in
some silicone material that’s going to
kill you and the environment or would
you rather buy your tomatoes from your
local farmer where he actually hands you
the tomato and he tells you about the
growing season and talk to you about the
all sudden exciting about buying the
tomato it’s what the relationship isn’t
it and by the way who cares if it costs
an extra ten cents nobody raised their
hands I mean press is that sexy or is
that sexy it’s called Oh people invent
stuff we can’t stop them the government
tries to stop us from inventing things
that’s what our first speaker was up
against they wouldn’t let her invent and
come up with new solutions it’s a real
problem but people are going to continue
so curiosity does matter curiosity
matters curiosities was made this
country advance we’re not about the
labor force anymore we’re about
innovation imagination that’s what put
us ahead we we meant to technology we
invented the automobile we met at the
airplane imagination and creativity is
the future the next generation of goods
and services are going to be from a lot
of other local makers smaller companies
not necessarily the big companies how
about this guy guy comes from paypal
develops this electric car you mean to
tell me the GM who had the world car
market for 70 years couldn’t figure out
how to come up with electric car what
about ford or those dudes in germany
that make mercedes they couldn’t figure
it out does it make sense Scott didn’t
go to auto school and look at the
valuation it’s like four times or three
times higher than Christ we’re right
innovation how about this guy game
changer many places don’t like them but
it makes sense because people decide you
guys been in a cab ride to LAX sitting
back of a cab it’s got that little
window you can look through it feel like
I’m in jail
it should pay me to write up their uber
makes sense so in my business the
biggest problem these days is parking I
will tell you twenty percent I’ll go on
record of our customers now ober cause
they all drink because it’s easier it
makes sense it’s actually cheaper how
about these guys now you can make money
renting your home while you’re on
vacation pretty good idea the hotel
industry hates them this is a matter
they’re going to keep growing look at
the valuation they don’t even run any
real estate interesting now computers
have no imagination people do I’m
convinced I really am convinced the
other thing that I’m convinced about is
that what can be accomplished on the
computer has less and less value when we
go to do our taxes or in our
organization they set up to India they
really do because you have MBAs they’re
working for five dollars an hour we
can’t afford the war for five dollars an
hour anything that could be done a
computer has smaller value you can’t
create the imagination of a computer
necessarily
[Music]
good example is what’s happened in China
they can make everything but they
haven’t really designed or creating
anything that I’m aware of there you go
this guy was pretty smart look what
happened to him Oh jump okay this is a
guy that’s really creative he really
uses his imagination right if you get an
opportunity to take a bite of the Apple
don’t just chomp away at it create
something make the world map or
something right creates value it’s not
just about the Apple anymore is it I
think they messed up on Africa a little
no nobody will know okay have no fear
some of the earlier speakers talked
about this take some risk it’s worth it
it does pay off right Alex hey I have to
tell you a story so down in mission
viejo mall there was a Saks Fifth Avenue
so one day it was gone and I heard
forever 21 went in there so my original
courier was in the action sports
industry I was president of Quicksilver
here locally and so I was curious Wow
50,000 square foot of forever 21 it’s a
lot of junk right so got in my car went
down to Mission Viejo I walked in Wow it
was true 50,000 square foot of junk as
I’m pontificating my way through the
aisles there’s this young lady and this
young man and there was a pair of jeans
hanging there that was for 799 and so
wow I’ve made goods all over the world
really have and I had no shame because
we were looking for price and value I
honestly don’t know where to go to make
a pair of jeans put the buttons to snap
the zippers pay somebody to build it pay
for the fabric put it on the ship ship
it over here pay to duty put in a truck
take it to my warehouse put in my system
pay somebody take it upstairs put it on
the hangar take it up advertise it and
sell it for 799 and make some money
it’s got to be an easier way but that’s
what they did by the way I could tell
the young couple weren’t married because
they look happy but then I sort of had a
headache after I went through this
forever 21 and as you walk out of this
forever 21 there’s a coffee shop outside
right so I went to get my cup of coffee
oh well what do you know the young girl
and the guy the happy couple or ordering
coffee right in front of me and she
ordered a macchiato a lot a ba ba ba ba
ba ba thing looks like Mount Fuji on top
right there was coffee in there
somewhere 695 so now I’m like whoa whoa
whoa whoa whoa Hugh spent seven 9900
pair of jeans and she paid almost seven
dollars for a cup of coffee it’s really
interesting but then I realized the fact
that she gets to have that cup of coffee
with her boyfriend who’s trying to marry
her and the time they spent together and
that experience has higher value than
that pair of jean that she bought for
799 that’s going to make her butt look
good for two weeks and then she’s going
to watch it and it’s going to
disintegrate but the memory of that cup
of coffee is going to stay with her
especially if he proposes
right so it’s called intrinsic value so
we were thinking about product in
business school nobody talked to us
about there’s a line item for culture or
there’s a line item for intrinsic value
but these have these things have value
it’s kind of like you know you go to
Italy and they all have three hour
lunches you just go what the hell don’t
these people work and then you really
realize its intrinsic value they know
how to live and high shop is an ugly
American i ordered my first course and
second course dessert and all can you
bring my coffee too and they just like
got it I get out of here because I don’t
want to wait to order the coffee they
have three hour lunches why went to buy
one of these things I guess it was like
10 years ago or so I show up at the
store and I noticed there was a camera
in it microtel I don’t I already have a
nice camera I want a phone I feel like
you know I can be a creative guy but
like I just didn’t get the camera thing
in your phone like this is a camera and
this is a phone I was very happy with
that
in my mind I just kind of imagined
why do I need a camera in my phone it
just seemed very retarded today I use my
camera more than my phone I hate talking
on the phone I look at it I see who’s
calling me and I put delete I use it to
text you use it for email I can turn the
lights on and off at my house right now
I like to do that because it freaks my
wife out it I tell her honey if you want
the lights to come on just clap and I
hear on the phone clapping and then I
just hit that button Oh
[Music]
totally worth my AT&T monthly coverage I
can turn my Jacuzzi on and off that
freaks are a tooth I use it for
everything except the telephone so now
imagine that somebody walking into an
apple store and says that i’m looking
for a telephone with a camera in it like
nobody talks like that i tried it didn’t
feel good my point is we expected it’s
called a multi-layer experience it’s
more like what do you mean it doesn’t
have a camera what I mean it doesn’t
turn my Jacuzzi on but you’re buying a
phone but we expected to do all these
other things this next generation of our
consumers expect these things it’s like
when I was growing up and you bought a
new automobile power steering was an
option remember that because an extra 80
bucks i’m not sure if it was worth it
but power windows was an option we used
to have to do any of these things to get
the window today you kind of expect it
that’s what’s happened to products and
goods so now people want content in
their lives okay I see a little bit of
this reversal of roles going on what’s
interesting is that people in other
parts of the world have been doing yoga
for about four thousand years we open
one of the first yoga studios in Orange
County at the camp and i remember when i
went to the counter at the city hall and
they said well what is it it wasn’t in
the book is it a school i said oh no no
it’s not at school I didn’t want it to
be a school because I couldn’t park it
and I said well is it a gym oh no it’s
not a jump
well what is it it’s yoga what are you
doing stand on your head put it in the
book isn’t there a standing on your head
section so today this is one of the
largest practices in America again he
took as 300 years to figure out so but
maybe what this means is we’re becoming
more spiritual and focusing on things
that are a little bit more important to
us and perhaps consumption is going
somewhere else maybe we bought
everything already and other things are
more important to us than just buying
stuff right this is a parking lot of the
camp I just have to show you the parking
lot put a plan together please work hard
every day please talking to the parents
inspire please I believe in this we can
change the world I know that this next
generation for sure can change the world
they’re going to cure all diseases they
will they will and remember imagination is not an end game but it’s a journey
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