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The Value of Luxury

July 30th, 2010

“We see consumers as the ultimate experts on brand prestige and this year they are voting on the entire perceived price/value equation of the brand as well as prestige,” said Milton Pedraza, CEO of the Luxury Institute. Brand, quality, value, rarity all play a role in how we valuate prestige products and experiences. As everyone derives value differently, there are three main criteria that help us decide whether a luxury product or service is worth it:

Price Value – Deal-seekers

There is always a risk to integrity whenever a prestige brand discounts, says Milton Pedraza, CEO of the Luxury Institute. A discount suggests the original perceived value was too high and essentially, you were getting ripped off. Despite Pedraza’s foreboding, Guilt Groupe has grown by leaps and bounds by offering daily flash sales to its “exclusive” 2 million invite-only members. Gilt expects to pull in $500 million in revenue in 2010 and in 2009, just two years after its launch, it posted revenues of $170 million. To counter Pedraza’s point, even a 10 percent discount on $1,150 Jimmy Choo shoes ($1,035) is still not accessible for most.

Enduring Value – Artisan Craftsmanship

The economic recession has the luxury industry returning to its core: enduring quality. Hermes and Louis Vuitton have flourished amid harsh economic storms, while other, trendier fashion houses such as Christian Lacroix have gone belly-up. Hermès managed to increase sales by 8.5 percent, including an 11 percent bump in the final quarter and an astonishing 20 percent gain in the Americas. In fact, Louis Vuitton held an event called “The Art of Craftsmanship,” to educate young designers on the importance of old-fashioned values such as artisanship and the mastery of traditional skills at New York City’s Fashion Week.

Exclusive Value – Uniqueness

By economic standards, value is derived from supply, demand and barrier to entry. Short supply, high demand and high barrier to entry drives the luxury market. Accordingly, only a select few high net worth individuals can afford to buy a $1.42 million Lamborghini Reventon or even a $170 Gucci key ring. In fact, only 20 individuals own the Reventon, as they are so rare. Uniqueness not only applies to products, but experiences as well. Quintessentially and Artisans of Leisure Travel design custom vacation packages ranging from Indiana Jones-inspired adventure or an immersion in Turkey and Israeli cultures. For those high net worth individuals seeking exclusive value, very short supply weighs heavier…

To read more about the value of luxury, go to Sparxoo.com.

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About the Author:
Sparxoo is a business blog that inspires breakthrough by tomorrow’s leaders. We are a strategy consulting firm with a pulse on marketing, branding, and development.
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Tags: Artisan Craftsmanship, Brand Quality, Christian Lacroix, Economic Recession, Economic Standards, Economic Storms, Fashion Houses, Fashion Week, Flash Sales, Foreboding, Jimmy Choo Shoes, Launch, Leaps And Bounds, Luxury Industry, Luxury Market, Luxury Product, Pedraza, Prestige Products, Quality Value, Rarity
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Generating 0nline Business Leads!

July 29th, 2010

Generating leads is important when when it come to your online business. There are dozens of proven and innovative ways to generate leads for your online business. The good news is that many techniques for producing leads are low cost or even free.You want to use your money wisely when generating leads. With help of the internet and local resources, it has never been easier to run a successful online business.Learning how to choose your prospects will dramatically minimize your costs for sales and marketing. In this article, we will look at some ways to generate a lead and keep it on track.

Identify your target audience – It would be a waste of your financial resources to send out leads if you do not know exactly whom you want to target for your online business. It is best to write a simple paragraph describing who your ideal prospects are.Perhaps the easiest way to generate online leads is to provide an opt-in form. You must have an irresistible offer so people will come to your website and identify themselves.If a visitor looks at the information on your site and their interest is piqued, it is a natural next step for them to sign up to your email marketing list. And there you have it – a qualified lead.

Pre-qualify prospects carefully – how can you be sure you know who is a qualified customer or prospect? This person will have a need for what you are offering and will state this. They will be able to afford what you are selling and will be more than eager to buy it. Bottom line, if they do not have the product already they are probably buying it from one of your competitors so you want to draw them to your online business. You want to find out if they will make good customers. After you meet them, call them and talk to them. Have your list of pre-qualifying questions at hand so that if you get nervous you can stay on track and sound confident.

Create a referral program – Word of mouth is one of the best and quickest ways to build your clientele list. When you begin creating your referral program start by targeting those individuals you want to influence others and then they will send prospects to your business. Contact your influencers by phone or e-mail them! and make appointments to talk to them directly about your services. Personnel relationships with your influencers are important to building your contact list and generating online business.

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About the Author:
About the Author:
Randy Casados is the owner of http://www.BlandyPlugInProfit.com and reviews popular home business ideas and opportunities. Randy’s most popular home business recommendation is the Plug-In Profit Site at: blandypluginprofit where you can get your own money-making website setup in 24 hours!
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