Stop Selling Luxury, Even If You Are Luxurious

According to Newsweek, in the circles of America’s upper strata, a new emotion is being felt. Coined as “luxury shame”, and described as “embarrassment of riches, particularly the flaunting of riches”, the trend is cutting into high-end retailer sales.

It seems the wealthy, perhaps ashamed of the spending sprees and bling consumption encouraged and flaunted during the last decade, now are feeling sorry for their friends who have lost everything. It just doesn’t seem right to purchase and brag about the new Ferrari that was on back order at the dealer.

Not to mention, the public doesn’t seem to be any too tolerant of a company’s $440,000 spa retreats at the St Regis when their tax money is being used for that same company’s bailout.

If you run a luxury high-end community, now is not the time to be utilizing a “You deserve it!” strategy. The wealthy, while they may secretly believe they deserve it, don’t want to believe that is why they are buying. It’s making them feel guilty.

Focus on the concrete - location, value, convenience and a low profile lifestyle. For example, if you used to sell “abundant”, or “over the top” closets, change your strategy to “adequate and functional” closet space. Don’t use words like, “indulge” and “luxury” to sell your product, rather, try “quality” and “smart”. Think about it this way – if you’re a high-end renter at a cocktail party celebrating the 2009 New Year, and somebody asks you why you chose your current residence, which would be more apropos of the times – “It was important to us to have only the best money could buy” or, “ We love our apartment because it’s location is perfect and it’s an extremely well maintained, quality building.” ?

People still want what they want. They are just feeling obligated to justify the need.