Pricing man (parte IX)

"Success Factors for Luxury Goods Price Strategies.
As we have done with the other price-positioning concepts, here are my recommendations for pricing luxury goods:
.
1. Luxury goods must always deliver the highest level of performance: This applies across all dimensions, including materials, product quality , service, communication, and distribution .
2. The prestige effect is a big driver: In addition to the dimensions above, luxury products need to convey and confer a very high level of prestige.
3. Price contributes to the prestige effect and serves as a quality indicator: A
higher price does not usually come at the expense of volume . In fact, sometimes
the opposite is the case.
4. Volume and market share must remain within strict limits: Observing volume and market share limits - especially if limited editions have been promised - is a must in the luxury goods market. Companies have to resist the temptation to go for a “bigger” volume or market share, no matter how attractive this may seem in the short term.[Moi ici: Recordar Gucci e LVMH]
5. Strictly avoid discounts, special offers, and similar actions: They will tarnish a product, brand , or company’s image (if not destroy it) and will diminish the products’ residual value.
6. Top talent is essential: Every employee must meet the highest standards and perform on a high level. This applies to the entire value chain , from design and production down to the appearance of salespeople.
7. Having control of the value chain is advantageous: Luxury goods companies should strive to control the value chain, including distribution , to the greatest degree possible.
8. The primary factor in price setting is the customers’ willingness to pay :
Willingness to pay is decisive, while variable costs play a relatively smaller role"

Trechos retirados de "Confessions of the Pricing Man: How Price Affects Everything" de Hermann Simon.