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FLORENCE • ATHENS • PARIS

Andreas K. Georgiou

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🎧 S2E3- The Psychology of Pricing

There is scene in HBO’s Succession where Logan receives a gift Patek Philippe. His son-in-law tells him:

“It’s very accurate. Every time you look at it, it tells you exactly how rich you are.”

Because… a Patek Philippe, just like any luxury product (or service) is not about the product itself. It’s about the price, and, much more than the price, it’s about the internal narrative.

Pricing is a story. Once you do it right, then your price represents more than dollar value. It talks to the identity of your client in profound ways: For some, price may indicate a sign of excellence. For others, price may be a way to reinforce an internal narrative of social status. For others, price may be a mere number that gives them access a wonderful world of opportunity to build up to their ideal perceived self. For others still, price is a mere metric for analysis in a spreadsheet, a symbol of sensibility and practicality.

  • What does the price mean?
  • What is the unique psychology of consumers in the luxury market?
  • And, importantly how does one leapfrog from the average to the luxury market?

This is a longer-than-usual episode, but it is one I believe is my most important one to date.

Scene from HBO’s Succession

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