The difference between luxury and premium

Both luxury and premium (services or goods) are expensive relative to other alternatives. The price of luxury items is not tied to performance. It is more perception. Premium, on the other hand, has everything to do with being better than other alternatives.

The higher price actually adds to a products perceived luxury.

The point is to know when your offering one or the other and be able to differentiate between the two. You’re not going to sell a luxury item to someone looking for a premium product and vice versa. Sometimes, they’re the same product. I guess that’s marketing.

This post was in inspired by a Seth Godin post titled Luxury vs. Premium.

by admin

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