HOW TO BECOME A LUXURY-PRICED BRAND

Watch Me Explain the 3 Simple Steps You Can Use to Increase Your Prices

Are Higher Prices Better for Your Company?

Hermann Simon is a leading expert on pricing, and in his book, "Confessions of a Pricing Man", he exclaims that he has seen a larger majority of "premium priced" brands succeed over their lower cost competitors.

In order to offer low prices, you must attract a huge volume of customers while maintaining very tight, and unforgiving margins.

Low-pricing companies like IKEA and Walmart are the exceptions, and not the rule of strategic pricing.

However, in order to become a luxury-brand with higher prices than your average competitors, you must provide superior value.

Now the problem is this value usually isn't subjective, but rather quantifiable if you sell products, or perceptual, if you sell services.

For example, authors of books are routinely requested by leading talk shows to discuss topics related to the subject of their book.

Does this mean they are the absolute experts on the subject they wrote a book about?

Not necessarily, it only means they wrote a good book that had great marketing.

So today you're going to learn the following:

1) How to prove your services are the best quality, and therefore worth a premium price

2) How to prove your products are the best value, and worth a premium price.

A portion of the OJ Simpson defense team after OJ was indicted for the murder of his wife, Nicole Brown Simpson. The media coined the team, "The Dream Team." Were they really the best attorneys in the country?

Starbucks was bought by Howard Schultz who converted it into a luxury-priced brand. Is Starbucks coffee really worth more money than their competitors' coffee?

How to Become a Luxury-Priced Brand...

...If You Sell Services

If you sell services, you must make a deliberate effort to do one, or all of the following, to justify a higher-than average luxury price:

1) Write a commercially published book, or get into the media and top publications: Many consultants such as Frank Luntz have written books that have catapulted them into the public spotlight, as well as relationships with leading brands.

2) Advertise a lot, or build a huge online presence: Tai Lopez has built one of the most popular online brands with ads such as Here in My Garage that got millions of online views. And now, he is sought out by brands all over the world for his social media advice.

3) Have outstanding credentials, qualifications or case studies: Alan Weiss, Ph.D (featured in the image below) has written more books on consulting than any person alive or dead. He is a top-billed speaker, and has done process consulting for some of the largest companies in the world.

As a result, his consulting, speaking and online courses demand some of the highest fees in the industry.

When you can demonstrate this much intellectual capital, and stay in the public spotlight, you can easily charge premium prices for your services.

Here he is featured with 2 of his many premium vehicles:

...If You Sell Products

If you sell products, you must make a deliberate effort to do one, or all of the following, to justify a higher-than average luxury price:

1) Win Competitions: Allure magazine gave the "Best of Beauty Lips" award to Pat McGrath Labs Lust MatteTrance Lipstick in Elson, which may or may not justify its $38 price tag which is more than double the average cost of lipstick.

2) Develop products in a perceptually dominant location: Lennox was mocked for creating their Lennox china in Pomona, NJ by their biggest competitors, Royal Doulton China.

3) Prove higher performance and luxury: U.S. News rated the 2018 Tesla Model S the best luxury large car on the market, justifying a cost of at least 30% higher than the average car.

Innovate, Introduce Something New or Be Exclusive

Innovate

Apple (when Steve Jobs was alive at least) routinely took the idea of phones, portable music, movies and computers to the next level.

That's why this:

now does everything all of this used to do:

Introduce Something New

In order to become a luxury brand, it wasn't enough for Howard Schultz and Starbucks to increase the prices of their coffee, they also introduced Italian coffee to American consumers which justified the higher price tag.

Schultz also had the vision that Americans needed a "3rd place" to relax at, in between work, and home.

As a result, Starbucks is the world's leading luxury coffee brand.

Schultz used this:

as inspiration to build this:

Be Exclusive

You'd think mass adoption of a particular brand would make it more valuable in the minds of its target market.

Not when you're a luxury brand!

Tommy Hilfiger's clothing brand became so widely popular in America, that retailers began to have more power over the sales and positioning of the brand, and as a result, a $45 sweater could be found in a bargain box in Macy's for $19.

Yes, that meant tremendous growth for the company, but only in the short term according to The New York Times:

"With that growth came expectations from Wall Street that Mr. Hilfiger could keep expanding. But as Tommy Hilfiger became more widely available, the label became less desirable. By the end of the ’90s, the company’s stock price had plummeted to $7.50, half its original value."

Marketing and Branding

Creating the image of a luxury brand begins with creating the image of a luxury brand.

Makes sense, right?

This starts with marketing. In my experience, the fastest route to creating a luxury brand is to channel the look and feel of already existing high-dollar brands.

Right now, there are about 3,000 Casinos in the world who have spent a ton of money on building a "luxury brand."

Start visiting all of their websites until you find the style and feel you like best. Or, simply higher a talented graphic artist.

In terms of messaging, write your copy as if what you sell is the most important thing that has ever happened in the world. Sounds funny, but try it, and tell me it wasn't effective.

NO Special Offers

Nothing kills a luxury brand faster then "special offers."

When the chief of Porsche's U.S. operations started offering discounts, he was promptly fired by CEO Wendelin Wiedeking.

This is going to get very painful when sales eventually slow down, or you make a private or public mistake that compromises profits.

Nevertheless, you can NEVER claim your stuff is worth more, and then wake up one day and change your mind, even for one day.

You just can't do it, and if you do, people will lose respect for the value of your offerings, now and forever.

Which website page makes you perceive the products listed are more valuable: the one with no discount, or the sales-focused page with slashed prices?

Yes, being a luxury brand will take a great deal of planning, execution and sacrifice; however, if you're looking to differentiate your offerings based on price, it's always safer to charge more rather than less!

WANT MORE ADVICE LIKE THIS EVERY SINGLE WEEK?

Are Higher Prices Better for Your Company?

Hermann Simon is a leading expert on pricing, and in his book, "Confessions of a Pricing Man", he exclaims that he has seen a larger majority of "premium priced" brands succeed over their lower cost competitors.

In order to offer low prices, you must attract a huge volume of customers while maintaining very tight, and unforgiving margins.

Low-pricing companies like IKEA and Walmart are the exceptions, and not the rule of strategic pricing.

However, in order to become a luxury-brand with higher prices than your average competitors, you must provide superior value.

Now the problem is this value usually isn't subjective, but rather quantifiable if you sell products, or perceptual, if you sell services.

For example, authors of books are routinely requested by leading talk shows to discuss topics related to the subject of their book.

Does this mean they are the absolute experts on the subject they wrote a book about?

Not necessarily, it only means they wrote a good book that had great marketing.

So today you're going to learn the following:

1) How to prove your services are the best quality, and therefore worth a premium price

2) How to prove your products are the best value, and worth a premium price.

A portion of the OJ Simpson defense team after OJ was indicted for the murder of his wife, Nicole Brown Simpson. The media coined the team, "The Dream Team." Were they really the best attorneys in the country?

Starbucks was bought by Howard Schultz who converted it into a luxury-priced brand. Is Starbucks coffee really worth more money than their competitors' coffee?

How to Become a Luxury-Priced Brand...

...If You Sell Services

If you sell services, you must make a deliberate effort to do one, or all of the following, to justify a higher-than average luxury price:

1) Write a commercially published book, or get into the media and top publications: Many consultants such as Frank Luntz have written books that have catapulted them into the public spotlight, as well as relationships with leading brands.

2) Advertise a lot, or build a huge online presence: Tai Lopez has built one of the most popular online brands with ads such as Here in My Garage that got millions of online views. And now, he is sought out by brands all over the world for his social media advice.

3) Have outstanding credentials, qualifications or case studies: Alan Weiss, Ph.D (featured in the image below) has written more books on consulting than any person alive or dead. He is a top-billed speaker, and has done process consulting for some of the largest companies in the world.

As a result, his consulting, speaking and online courses demand some of the highest fees in the industry.

When you can demonstrate this much intellectual capital, and stay in the public spotlight, you can easily charge premium prices for your services.

Here he is featured with 2 of his many premium vehicles:

...If You Sell Products

If you sell products, you must make a deliberate effort to do one, or all of the following, to justify a higher-than average luxury price:

1) Win Competitions: Allure magazine gave the "Best of Beauty Lips" award to Pat McGrath Labs Lust MatteTrance Lipstick in Elson, which may or may not justify its $38 price tag which is more than double the average cost of lipstick.

2) Develop products in a perceptually dominant location: Lennox was mocked for creating their Lennox china in Pomona, NJ by their biggest competitors, Royal Doulton China.

3) Prove higher performance and luxury: U.S. News rated the 2018 Tesla Model S the best luxury large car on the market, justifying a cost of at least 30% higher than the average car.

Innovate, Introduce Something New or Be Exclusive

Innovate

Apple (when Steve Jobs was alive at least) routinely took the idea of phones, portable music, movies and computers to the next level.

That's why this:

now does everything all of this used to do:

Introduce Something New

In order to become a luxury brand, it wasn't enough for Howard Schultz and Starbucks to increase the prices of their coffee, they also introduced Italian coffee to American consumers which justified the higher price tag.

Schultz also had the vision that Americans needed a "3rd place" to relax at, in between work, and home.

As a result, Starbucks is the world's leading luxury coffee brand.

Schultz used this:

as inspiration to build this:

Be Exclusive

You'd think mass adoption of a particular brand would make it more valuable in the minds of its target market.

Not when you're a luxury brand!

Tommy Hilfiger's clothing brand became so widely popular in America, that retailers began to have more power over the sales and positioning of the brand, and as a result, a $45 sweater could be found in a bargain box in Macy's for $19.

Yes, that meant tremendous growth for the company, but only in the short term according to The New York Times:

"With that growth came expectations from Wall Street that Mr. Hilfiger could keep expanding. But as Tommy Hilfiger became more widely available, the label became less desirable. By the end of the ’90s, the company’s stock price had plummeted to $7.50, half its original value."

Marketing and Branding

Creating the image of a luxury brand begins with creating the image of a luxury brand.

Makes sense, right?

This starts with marketing. In my experience, the fastest route to creating a luxury brand is to channel the look and feel of already existing high-dollar brands.

Right now, there are about 3,000 Casinos in the world who have spent a ton of money on building a "luxury brand."

Start visiting all of their websites until you find the style and feel you like best. Or, simply higher a talented graphic artist.

In terms of messaging, write your copy as if what you sell is the most important thing that has ever happened in the world. Sounds funny, but try it, and tell me it wasn't effective.

NO Special Offers

Nothing kills a luxury brand faster then "special offers."

When the chief of Porsche's U.S. operations started offering discounts, he was promptly fired by CEO Wendelin Wiedeking.

This is going to get very painful when sales eventually slow down, or you make a private or public mistake that compromises profits.

Nevertheless, you can NEVER claim your stuff is worth more, and then wake up one day and change your mind, even for one day.

You just can't do it, and if you do, people will lose respect for the value of your offerings, now and forever.

Which website page makes you perceive the products listed are more valuable: the one with no discount, or the sales-focused page with slashed prices?

Yes, being a luxury brand will take a great deal of planning, execution and sacrifice; however, if you're looking to differentiate your offerings based on price, it's always safer to charge more rather than less!

WANT MORE ADVICE LIKE THIS EVERY SINGLE WEEK?

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