#60 The Luxury Business: Part I
A luxury good is one where the price paid is much higher than the apparent utility it offers. We pay extra precisely because it’s not a good value. The utility lies in how we and our peers think about it. The scarcity and bling of a luxury good are used to increase our status (in our own eyes and those in our cohort).
Seth Godin • Speculation is the new luxury good
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
