Different products and services require different marketing strategies. It all depends on your target market. Selling mainstream services to middle-class people need simple marketing programs. If you are planning to sell for a small number of chosen elite customers, then, luxury marketing should be your strategy. In this blog post, I will tell you about three main marketing rules that must be followed whenever you try to market luxurious products.
Produce in Limited Quantities
We know that product or service prices depend on the quantity of supply and demand. If there is low demand and a lot of supply, consequently, prices for a product or a service will drop. On the opposite side, when there is no supply but high demand for a product, then, prices will accordingly skyrocket.
All luxury brands follow this rule. To control prices for luxury goods, luxurious brands produce their goods in very small quantities. A luxurious product should be rare. Otherwise, it stops being luxurious. Whenever a product is rare and there is a high demand for this product, companies can set whatever prices they wish. There are always a lot of bidders who will pay tons of money to get a rare item.
Luxurious Goods Should be Expensive
The second rule of luxurious marketing is to set high prices for your goods or services. People judge the quality of your products or services according to the price you set for them. Luxurious goods must always be expensive regarding the cost of production and other aspects of the business. For example, the cost to produce luxurious sunglasses might be 30$-50$ together with the box and packaging, but the company should sell them for a minimum of 200$ to follow the second rule of luxury marketing.
In luxury marketing, price and quality are not always connected. In other words, partly, a luxurious item is luxurious because it is expensive. As soon as a company lowers prices for its services or items, people stop associating them with luxury.
Gorgeous Packaging and Quality
In luxury marketing, gorgeous and elegant packaging plays a big role. You can sell a luxurious item with a poor package. People will usually judge the quality of your production by their cover. It should always look very expensive, elegant, and eye-catchy.
Of course, nobody would pay hundreds of thousands of dollars for a Rolls-Royce or a Ferrari if the specifications and quality of these cars weren't unique, top-notch, and rare. Although luxury brands use different marketing techniques to associate their products with elite crowds and customers, these companies also produce high-quality products. Otherwise, customers would just think that their products are overpriced. Whenever you buy a Hermes bag, you are assured that it was made from the best materials in the world and by the best craftsmen available. While buying such a bag, you buy a high-quality bag, exclusive customer service, rarity, and emotions.
These are the main laws of luxury marketing. You must sell high-quality products packed in gorgeous packages, produced in limited quantities, and sold with high price tags. If you violate one of these laws, your luxury marketing campaign will fail.