Benchmarks are useful for quick comparison and decisions. But forget what the benchmark is or that it isn’t an immutable law and it becomes a trap.

The CEO of Bronco Wine – which sells the Charles Shaw “Two Buck Chuck” wine at Trader Joe’s – was once asked how he’s able to sell wine for less than the cost of bottled water.

He replied: “They’re overcharging you for the water. Don’t you get it?”

The real question is how can they sell bottled water for more than the cost of a bottle of wine?

Comparison goes both ways.

via Morgan Housel