“The saddest thing I can imagine is to get used to luxury.” –Charlie Chaplin

I’m not sure that’s the saddest thing I can imagine. I get the premise behind the thought but ultimately, there are so many things sadder. I’m a huge fan of luxury myself. Yet as a pragmatist and a realist, I can see the pitfalls that may lure the average person into believing they have a luxurious, rich life because of the outrageously priced goods they’ve racked up on their credit cards.

In a article on MSN, “Uncommon Sense: Luxuries you can live without — and should”, (moneycentral.msn.com/content/Savinganddebt/Savemoney/P107710.asp) author MP Dunleavey points out the new frames that certain items which were once considered ordinary and mundane purchases, things that we need for daily life but which shouldn’t set us back too far, have now become commodities.

Pots, sheets, tennis shoes, watches. . .all of these things have been reframed, making them appear far more valuable. . . cookware, linens, athletic footwear, time pieces.

The author admits the original product is necessary in daily life, but the “new, improved and reframed” product need not lure us to spend beyond our means.

To contrast this reasonable approach to luxury items, this Wall Street Journal article, “The Psychology of the $14,000 Handbag: How Luxury Brands Alter Shoppers’ Price Perceptions; Buying a Key Chain Instead.” (online.wsj.com/public/article/SB118662048221792463.html) describes a technique used by retailers pushing the limits of reason. The strategy involves a first tier of products priced far outside a normal person’s ability (and hopefully inclination) to buy. It also involves a second tier, a product or products that stretch the consumer’s ability to buy, but not by too much. For example, if you just HAVE to have a Tiffany’s product, think about a $135 key chain.

She writes, “when shoppers are confronted with prices they can’t afford, a smart retailer will ‘move you right along to where you can salvage your pride,’ says Dan Hill, president of Sensory Logic, a Minneapolis consulting company that helps companies explore their sensory and emotional connections with customers.”

Working with an affluent clientle gives us the benefit of not having to put the screws to our prospects and clients. If someone can’t afford our product or service, we know that our product or service isn’t right for them. However, the psychology behind this price perception remains the same for the affluent as well.

We frame ourselves properly when we suggest we are not the cheapest, but definitely worth the price. When we put out exactly what we require, we will alter perceptions. With that said, and with Charlie Chaplin in mind, one of the saddest things I can think of is accepting less than what we’re worth.

What are you worth?

Tags: Business

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