What a Rolls-Royce Says About Conspicuous Consumption

We recently learned about Project Nightingale. Announced by Rolls-Royce, each car will cost at least $3.5 million.

The story reminded me of Thorstein Veblen

Rolls-Royce Project Nightingale

For Project Nightingale, the 100 coach-built vehicles they plan to produce have already been sold. Battery-powered, and as long as a Cadillac Escalade (the standard model is 211 or so inches- as tall as an adult giraffe), the car has two seats. Next, the buyers just need to customize them. Customization includes your own paint color named for you, curated woods, embroidery. Sort of like the lining that no one sees of a jacket, you can engrave the inside of your vents. Appreciating the opportunity to differentiate themselves, Rolls-Royce says that clients are willing to pay for development as well as the product.

The cars are called coach-built when Rolls-Royce provides the “rolling chassis with an engine, a drivetrain, an instrument panel, a steering wheel and an upright “Pantheon” grille.” Then, clients have a specialty firm add the body they want. Now, prioritizing coachbuilding, Rolls-Royce has expanded its plant in southern England so that they could complete the car in-house.

You might have heard of the Sweptail coupe (I have not–Only one was made) or the Droptail roadster (There were four).

This is the Sweptail. Called a mystery car, reputedly, no one knows who owns it.

Rolls-Royce gave the NY Times this photo of a Nightingale EV.

It all takes us to conspicuous consumption.

Our Bottom Line: Conspicuous Consumption

Explaining demand, the Rolls-Royce CEO, Chris Brownridge said his customers wanted the stories that customization can give them. Citing value, a luxury expert further explained demand for a $6 million car. “These clients are willing to pay for value…And that is not only functional value, but personal value.”

The person who really understood this kind of value was Thorstein Veblen.

In his Theory of the Leisure Class (1899), Thorstein Veblen presumes our need to shout status through conspicuous consumption. His rationale might explain (at least partially) eye-popping car prices. By spending millions on a Rolls-Royce, the ultra-rich upper class signals its power. It is even too expensive for aspirational shoppers to display traditional conspicuous consumption behavior.

Thorstein Veblen was rather eccentric. I was delighted to have read that he let his dirty dishes accumulate until none remained and then, after spraying them with a hose, started all over again.

This is Veblen:

My sources and more: Thanks to the NY Times for inspiring today’s post. Also, we recently wrote about the million-dollar market in dinosaur bones.

Our featured image is the Nightingale EV.