Petrie argues that creating value for the customer is independent of the price point. A customer must perceive value whether an item is $20 or $1000. He distinguishes between a cheap, transactional item and a more expensive, investment-worthy product that lasts.

After decades of unsustainable growth that 'spoiled' the industry, the next phase is not a 'new normal' but a return to core principles. True luxury is about re-establishing exclusivity, selectivity, high value, and dream-like experiences, rather than chasing endless expansion and diluting the brand.

After years of unsustainable growth, the luxury industry must return to its core principles: exclusivity, dreams, experience, and hospitality. This isn't a new paradigm, but a return to the foundational values that defined luxury before the recent boom, which Prada's CEO calls the 'old normal'.

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.

If a customer is shocked by your price, your marketing has already failed. Every public-facing asset—vehicle wraps, social media posts, uniforms—builds a perception of value that primes the customer to expect a certain price level before your team even presents an estimate.

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.

For luxury goods or services, pricing is a key signal of quality. A price point that is incongruent with luxury branding can make potential buyers skeptical and actually reduce close rates. Raising prices can increase desire and conversions by aligning perception with promise.

In true luxury, a brand's ability to evoke emotion and dreams should be so compelling that price becomes secondary. If a customer focuses on the cost, it signifies a failure to create sufficient desire, resulting in a transactional, rather than emotional, relationship.

In a true luxury market, pricing that is too low is incongruent with the brand promise and can actively harm your close rate. A wealthy buyer expects a high price as a signal of quality. If your 'luxury' wedding entertainment costs $30k when flowers cost $500k, the price signals that it's not a premium service, creating distrust.