#60 The Luxury Business: Part I
The Grand Complication reveals another fundamental characteristic of luxury goods: as price rises into the stratosphere, the number of units available also seems to disappear into ever-thinner air.
Hermann Simon • Confessions of the Pricing Man: How Price Affects Everything
The Grand Complication reveals another fundamental characteristic of luxury goods: as price rises into the stratosphere, the number of units available also seems to disappear into ever-thinner air.
Hermann Simon • Confessions of the Pricing Man: How Price Affects Everything
This kind of bundling also occurs in the luxury watch market. Dealers occasionally need to buy a bundle which includes models that are hard to resell. These models often end up in gray-market channels, where original watches get sold at steep discounts. This kind of price erosion is toxic for luxury goods. A customer who has paid $25,000 for a watc
... See moreHermann Simon • Confessions of the Pricing Man: How Price Affects Everything
The bigger issue is this: in today’s brand ecosystem, the word “luxury” has become virtually meaningless. It’s been flattened, diluted, and reduced to a vibe. So what actually qualifies as luxury anymore?
I texted my friend Amanda Mull, a journalist at Bloomberg Businessweek , and she said something that immediately hit:
I texted my friend Amanda Mull, a journalist at Bloomberg Businessweek , and she said something that immediately hit:
“This is Bernard Arnault’s fa... See more
Who Gets to Decide What’s Luxury?
Luxury and premium priced items are often known to be of similar quality to lower priced options. Their owners want to be seen as being able to afford them.
Chris Goward • You Should Test That: Conversion Optimization for More Leads, Sales and Profit or The Art and Science of Optimized Marketing
For premium and luxury goods, one needs to know whether such prestige effect s exist and whether the demand curve has a part which slopes upward. If it does, the optimal price never lies in that portion of the demand curve. It always lies higher, in the part where the curve slopes downward again. This reinforces a key lesson in this book: you need
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