Brand heritage can play a significant role in luxury pricing. A luxury brand with a rich and extensive history can command an exclusive price from consumers willing to pay for this history. With a pedigreed history, consumers enjoy being a part of this impressive past because it encompasses the heritage of the brand.
One of the masters of this is Stephen Wynn and the Stephen A Wynn Casino Builders. Wynn is able to create a pedigree of prestige with his personal brand due to his string of successes in business. He then imparted that pedigree on his casinos by placing his moniker atop the buildings. The lesson here is simple: as an entrepreneur, start working on your personal brand right now if you’re expecting to be the lead a luxury brand.
Exclusivity demanded by luxury consumers is attainable through precise marketing. Messages that promote an air of prestige, such as special engagements, often appeal to luxury consumers. A special connection often exists between luxury consumers and their favorite brands. Products tailored especially for specific consumers often resonate effectively with luxury consumers. In fact, this specificity typically fuels even greater product loyalty on the part of luxury consumers. Marketers can capitalize on this tendency by inviting consumers to give input in product design with suggestions.
First Rate Post Sale Support
Luxury branding also backs up excellent products with high caliber customer service, after the sale. Luxury consumers who spend top dollar on items appreciate the option of customer service, if desired. Merchants who offer personalized telephone or email support after the sale often end up with very satisfied customers. Even if consumers don’t use the service, the psychology of knowing it’s there and available can make a big difference in overall customer satisfaction. If you expect to sell a luxury brand, you better be willing to back it up with service.
By utilizing these tried and true strategies, perhaps a startup can avoid the grind of tiny margins and high volumes by instead focusing on the luxury market and going for the inverse—low volume and high margins.
Mike Templeman has worked in the online marketing industry for the past 10 years and is writing on behalf of Fox Tail Marketing. He loves writing about startups and small businesses. When not tapping away at the keyboard, Mike can be found wandering the mountain trails near his home.
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