For luxury brands, raising prices is a strategic tool to enhance brand perception. Unlike mass-market goods where high prices deter buyers, in luxury, price hikes increase desirability and signal exclusivity. This reinforces the brand's elite status and makes it more coveted.

Norwegian Wool avoids inflating prices just to offer discounts later. By maintaining price integrity, they build trust with customers who know they're paying the "real price." This prevents buyer's remorse and reinforces the brand's premium, high-value positioning.

This value proposition, offering near-premium quality at a significant discount, propelled brands like West Elm and Old Navy to billion-dollar valuations by capturing the aspirational-yet-price-conscious consumer.

Constantly discounting your main product trains customers to wait for sales and devalues your brand. Instead, splinter off a small component of your core offer and discount that piece heavily. This acquires customers and builds trust without cannibalizing the perceived value of your full-priced core offer.

To sell more of a $300 package instead of a $200 one, introduce a $500 option. Most won't buy the decoy, but its presence shifts the customer's reference point, making the $300 package appear more reasonable and valuable by comparison.

For high-end brands hesitant to offer discounts, Apple's model is ideal. They sell products at full price but include a substantial gift card for future purchases. This drives sales and encourages repeat business without ever putting the core product "on sale," thus preserving brand prestige.

For the first time, Coach led its Black Friday and holiday season with brand messaging, not promotions. This reflects a conviction that building genuine brand desire reduces the need to compromise on price, even during peak sales periods, thus protecting brand value.

Even if rarely purchased, a premium one-on-one offer serves as a powerful value anchor. Its high price tag transfers a degree of perceived value to your more accessible, scalable products. To work, you must confront the high price directly with prospects before offering a downsell.

To combat a 'cheap' reputation, online retailer Quince strategically sells limited-run, high-end items like caviar and gold bars unrelated to its core fashion line. These 'halo products' create 'luxury by association,' elevating the entire brand's perception in the minds of consumers, a tactic also used by Costco.