How Luxury Pricing Is "Extravagant"

In fact, the cost of luxury goods is calculated: raw materials + processing costs + extravagant Brand value + market public relations cost + channel cost + tariff and government tax rate = actual selling price. The brand value of luxury goods costs has become an important one, while raw materials and processing costs are relatively low. Taxes and tax rates are also part of the price impact. The price of luxury goods is co founded by its brand positioning, scarcity and uniqueness, long history and legendary stories.

Luxury goods Price It is characterized by its brand positioning, product scarcity and uniqueness. brand The long history and the legendary story have been cast together.

Expert analysis: brand value is the core of luxury pricing.

Unlike the sale of ordinary goods, luxury goods stimulate demand by increasing prices. It emphasizes the establishment of a sense of distance with consumers, which is beyond luxury. Price is not a problem in this industry. If the price is low, it will be cold. If the LV package price is 500 yuan, everyone's reaction must be the same: fake.
 

Luxury goods are not ordinary commodities, but prices vary greatly with the supply relationship. When the cost of luxury goods rises, prices will rise. Branding is more likely to be destroyed than sales.

The price of luxury goods itself needs marketing. In terms of pricing, luxury brands have special market price research departments. It collects sales data in a region, and even analyzes the changes in purchase psychology caused by price setting. For instance, China's current stage can be attributed to the conspicuous stage. At this stage, luxury goods begin to shift from mass consumption to mass consumption. Consumers buy luxury goods more often than they do.

"Semi starvation" marketing rules

Another big reason for the high price of luxury goods is to keep the market in a "semi starved state". Many luxury brands often make use of this characteristic of luxury goods to create a classic or limited edition product, so as to seize customers' thirst for scarce and unique products. This ingenious strategy can successfully raise the brand positioning and make the product always in short supply. Luxury goods that follow the "half starvation" marketing rule are actually "high cost = high profits".