1 of 22

Welcome!

Luxury Pricing

Dr. Satyendra Singh

Professor, Marketing & International Business

University of Winnipeg, CANADA

sites.google.com/view/drsatsingh

s.singh@uwinnipeg.ca

2 of 22

What is source of value for pricing?

Commodity Goods Service Experience

10₡-50₡ $1-$2 $4-$5 $8-$10

2

3 of 22

Luxury pricing depends on…

Positioning of the luxury. True/premium…

Ratio of functional and dream part

Premiums (100%-200%):

Exclusivity, scarcity, dream (Hermès)

Brand heritage and prestige (Rolex)

Craftsmanship and quality (Saville Row)

Unique design and Aesthetic (LV)

Customization (Brioni)

Customer experience (Cartier Jewellery, personal consultation)

…

3

4 of 22

4

Which premium?

5 of 22

5

Which premium?

6 of 22

6

7 of 22

7

8 of 22

8

9 of 22

Clive Christian’s Imperial Majesty: $215,000 (16.9 Oz)

9

10 of 22

10

11 of 22

11

12 of 22

12

13 of 22

13

14 of 22

14

15 of 22

Hermes Birkin�named after Jane Birkin�$9,000-$150,000

15

16 of 22

16

17 of 22

Patek Philippe�$200,000

17

18 of 22

Patek Philippe: $320,000

18

19 of 22

Patek Caliber 🡪 $5m, complicated watch, X 2 Ferrari’s price!

19

20 of 22

20

21 of 22

Questions?�s.singh@uwinnipeg.ca

21