Even though the luxury markets may seem difficult to break into, they present excellent opportunities to earn high profit margins on your products or services. When you’re selling luxury products and services, you can make more on each sale.
Just as important is the fact that luxury markets can be lucrative, even during recessions. During the Great Recession, several luxury brands, including Hermes and Louis Vuitton, saw their brand value increase significantly while other stores went out of business.
The marketing strategies that work on regular customers won’t necessarily be effective with luxury audiences, though. Here’s how your luxury brand can win over high-end customers.
Don’t compete on price
Most consumers who purchase luxury products still care about price, but it isn’t their primary concern. They’re willing to spend more if they feel that the product is worth it. You’ll get more customers if you focus on demonstrating the value of your product instead of competing on price.
Another problem with going for lower prices is that this can backfire and leave consumers with the impression that your products are of lower quality. If your luxury product is priced lower than all your competitors’ goods, consumers are more likely to wonder what’s wrong with yours.
It’s common for people to associate higher prices with higher quality, and vice versa, especially if you emphasize quality in your marketing campaigns. By making quality a focal point and setting your prices to match, consumers will associate high quality with your brand. Once that happens, high-end customers won’t have a problem paying a premium for your products.
Focus on the exclusivity factor
Although quality is one big reason consumers choose luxury products, they also desire the exclusivity factor. They want something that not just anyone has. The everyday consumer is fine with mass-produced products, but the high-end customer definitely isn’t.
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