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Luxury brands need specific management
the desired service at a lower cost, the economy being clearly justified (an ‘outof-season’ Relais & Châteaux, for example). This is therefore not a markeddown product. However, it should not be used as a method for filling spaces, as is commonly done in classic products. Take the example of a luxury cruise, where the clientele is often somewhat older. If the company that charters the boat does a ‘special newlyweds offer’, the clients who have paid the full fare will not feel affronted, because a honeymoon is an exceptional time, and they would not be shocked if on such an occasion a favour was done for newlyweds. On the contrary; it will remind them of the good times of their own youth. If, however, the company makes a ‘last-minute’ offer, addressed to everyone over the internet, leading to complete filling of the boat and therefore saturation of the services offered during the cruise, those clients who have paid the full fare will not be happy to receive in return a less effective service, to the benefit of ordinary clients who have obtained exceptional financial conditions. Those of us who have already experienced this situation, particularly common in air travel, have certainly not enjoyed it. The luxury brand is exclusive: if it leaves the door ajar, it is only for socially justifiable reasons (special occasions, etc). This example is a good illustration of the rules to be observed:
• Never penalize existing clients through a lowering of service quality due • • •
to new arrivals, and at all costs avoid them feeling insulted, since they have paid ‘full price’. Have a positive explanation for the special price (‘honeymoon’, ‘low season’, etc). Do not lower the service quality for those who have profited by the special offer: it must remain a luxury product for all clients. Ensure that those who have obtained a favour are worthy of being part of the club of clients (anti-law number 4: ‘Keep non-enthusiasts out’): the luxury brand is segregationist.
The price varies freely according to the offer and the demand This is the world of auctions, originally reserved for exceptional products (namely art) and concentrated in a few, relatively inaccessible places (auction rooms), but which modern technology is revolutionizing and allowing to generalize: since a luxury product gains value as it ages, an important secondhand market will grow up, and computing and the internet will enable it to be monetarized (via eBay for example).