These Common Pricing Mistakes Destroy Luxury Brands

(jingdaily.com) - Pricing is one of the most difficult tasks for luxury brands to manage. Even leading brands and seasoned managers fall into the same trap over and over: pricing based on cost and competitors. Because of this, we see a lot of untapped optimization potential in luxury pricing. Many luxury brands are not profitable enough because they make pricing mistakes. But what’s even worse is when their incorrect pricing erodes hard-won luxury positioning with customers. When luxury brands fail and disappear from the market, incorrect pricing is often to blame. It surprises many to learn that many luxury brands are priced too low thanks to bad internal strategies.