Prestige Pricing

Prestige pricing refers to the practice of setting a high price for an product, throughout its entire life cycle- as opposed to the short term 'opportunistic', high price of price 'skimming'. This is done in order to evoke perceptions of quality and prestige with the product or service.

Advantages

• Makes brand look highend
• Higher Profits
• Company becomes more familliar

Disadvantages

• Can look too overpriced
• Depending on the target market you may loose customers
• Would have to spend more on the apperence of you location

Examples

• Marc Jacobs
• Dior
• Chanel
• Apple
• Louis Vuitton