How to sell luxury in today's market

Written by Paul on November 16th, 2008

While watching TV last weekend, one particular commercial made me realize just how much the market is changing. Actually, it wasn’t really the whole commercial but a particular line — their tagline was “Lowest Cost of Ownership” and referred to Lexus’ decent fuel economy, durability, and resale value.

That’s interesting because they used to run pre-Christmas ads for their “December to Remember” events featuring a loving spouse giving his or her significant other a new Lexus wrapped in a big red bow.

Even Hyundai’s doing it — in their most recent ad, they noted that the new Genesis sedan ($33K) has the same sound system as a Rolls-Royce Phantom ($300K+). “If you’d rather have money than a hood ornament,” goes the ad, the Genesis may “look even better than a Rolls-Royce.” Nice.

At the end of the day, the ‘I-buy-it-because-I-can” mentality is dead. No one wants to look like the idiot who bought something because it’s expensive anymore. If you’re selling to this market, you should be focusing on practicality, value and durability.

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3 Responses to “How to sell luxury in today's market”

  • Samir

    Great advice. It surely ties in with how to attract today’s buyers as they are now thinking twice about their purchases. Your advice pretty much applies to any business these days, no matter how big or small they are. I think companies are having more of an issue with differentiating themselves from the competition in a manner that captures the attention of their potential customers.

    — 11/16/08 at 8:29 pm

  • It’s interesting to see how brand perception play out here. Even if the Hyundai Genesis rides like a 7-series, handles like a 5-series, and costs like a 3-series, I still can’t connect the dot between value and quality. I always remembered Hyundai as a cheap, low quality car that “just gets you from A to B”. Now they want to sell luxury? It may take a whole new generation to buy into that.

    — 11/24/08 at 9:59 pm

  • Great advice! How to sell these days are most certainly different than it was a year ago. Productivity, value, cost savings and increasing revenue are key. Thanks for the info, Pierce

    — 12/13/08 at 5:31 pm

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