Why does luxury never go on sale?

Today, discounts of 70% or even higher are even commonplace. And you don't have to wait for sales. To find them, all you have to do is go to outlets such as Value Retail (Las Rozas Village and La Roca Village in Spain) or visit online stores that sell luxury brands with year-round promotions, such as The Outnet, among others. So Loewe, for example, does not practice sales in January but has a store in Las Rozas Village where you can buy your products from other seasons much cheaper.

Where's the problem? Well, there are several. For starters, the consumer will question the actual price of the items. Was this Prada jacket really worth 5,000 euros from the start? Isn't luxury supposed to exude exclusivity and scarcity? Am I going to buy a bag that marks my status and then see it hanging from the arm of other people with less purchasing power? Because the price is one of the elements that inform us that this product is unique and that very few privileged people can access it.

For the experts at Seeking Alpha, a platform for investing in equities, there is a difference between the real value (the intrinsic value of the product, based on its quality, how it fulfills a purpose, how it exhibits status) and the perceived value, which refers to the image of the brand. When a firm makes sales, the perceived value deteriorates, and also its ability to charge a premium. “A true luxury goods retailer should never discount their products, especially their flagship products. In fact, the discount is a bad service to customers. Why punish your customers who value the product and are willing to pay full price?

Why luxury never goes on sale ?

One of the brands that makes no mistake is Louis Vuitton, which distributes its products through its own channels and without discounts. It never does: neither on its website, nor through outlets or online stores. Thus, customers do not have to delay their purchases in time, since they trust that the brand will not apply discounts in the future. They appreciate not having to worry about when to buy a luxury good because they perceive the price to be fair. And in this way, when we see someone wearing a louisvuitton (not an imitation, of course), we know that they have paid their price for it. With all its zeros.