6 Lessons from Luxury Brands to Make Your Brand 95% More Profitable

1. Luxury brands command premium pricing.

When your customers see higher price points subconsciously they feel it must be of greater value. That price commands a very specific experience, one that your customers deserves to receive... after all, they paid for it.  Equally, when you know you provide an exceptional product/service, the price MUST reflect the value to prevent undervaluing your service. 

2. Luxury brands focus on extreme levels of differentiation.

Luxury brands invest a lot of money to make their brand different. The slightest similarity to a cheaper option will cause customers to choose the cheapest option. Cheap is not an option for luxury brands, it would harm your positioning and cause customers to go elsewhere. 

This why luxury brands focus on extreme differentiation through the customers they serve, their brand identity, and the overall experience delivered. 

3. Luxury brands are passionate about their history 

Every brand has a story to tell. From the moment you began, the path you walked, share every moment to build a story your customers love.

Try to document your brand from day 1 by building a collection of all the experiences that occur along the way. It might not mean much now, but over time your brand's history will become richer. This history conveys a lifetime of trust to win your customers hearts. 

4. Luxury brands position luxury in every detail 

No matter how small the detail, luxury brands scrutinize every detail. Even down to a single stitch. Even a single stitch that was hand-woven as opposed to created by machine can mean the difference between a $100 price tag and a $1,000 price. 

5. Luxury brands focus on experiential retailing

Every element is carefully crafted. The music that is played, the lighting of the store, the colours, even the smell of a store plays a role in the experience

It's not about buying a product, it's about creating an experience that relates to what your customer wants to feel

6. Luxury brands consistently manage their online presence 

Luxury brands and their customers value qualities such as consistency, reliability, and relevance. An inconsistent social media strategy damages your perception of trustworthiness and relevance. When deciding to take to social media, identify what works well for others in your field, use your unique brand voice and style to add your own spin and show up regularly. 

Want to start making money with your luxury brand? - Check out our best-selling brand building book here

Robert & Alek
CEO Sphere