Five Reasons Why Luxury Goods Are Expensive
In economics, there's a basic principle: when prices go up, people buy less; when they drop, they buy more. However, luxury goods flip this rule on its head. The pricier they are, the more they seem to sell.
But in today's world, where consumers are well-informed and savvy, just being expensive doesn’t automatically open wallets. There's some kind of enchantment in the pricing of luxury goods. Why are they so expensive, anyway?