Luxury Retail: The Folly of the Discount

"When you discount your luxury product, the perceived value deteriorates and so does your ability to charge a premium. Suddenly, more customers are wearing the same purse, the underlying value has not changed significantly, but the perceived value certainly has. A true luxury goods retailer should never discount their products; especially their flagship products. In fact, discounting is a disservice to customers. Why punish your customers who value the product and are willing to pay full price?"

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