Like any Friday, I woke up anxiously to see if it’s my turn on Words with Friends. Before I even get to submit my uber redunklous word, I received a text.
“Hi Lawrence! I’m back in LA. I’m coming over.” Joanne requested.
Before my cousin arrived, I got dressed and prepared a soy latte. “What do you want to do today?”
“Anything.”
I pondered… “Well, do you need clothes? We could go to the outlets.”
Joanne giggled. “What?” I asked.
“Well, I never need clothes,” she replied cutely. “But, it sure would be nice to have some new bathing suits for summer.”
What a little genius I thought. I inquired her for permission and she said, “you could quote me.”
From that, here’s the test to see if you’re a luxury business…
Are You a Luxury Business?
About a year ago, I did a presentation on luxury businesses and a photographer got caught up on the fact that luxury businesses are defined by their prices. He outright denied the fact that he was one despite his premium.
It was probably my fault for not being able to articulate my point clearly. A luxury business is not defined by its price.
In fact, you could be free and still be a luxury: Secrets on How to Handle Discounters.
Using Joanne as my example, you only need to ask yourself one question (and there is no middle ground). Which model are you?
- I need to have…(clothes)
(necessity / utility) - It’s nice to have…(Abercrombie & Fitch)
(luxury)
Hopefully, you all picked the #2.
- I need to have clothes to stay warm, so I’ll get some of Mao Zedong attire, but it would be wonderful to have a sweater from A&F.
- I need to have flowers and will probably have my family put the bouquets together, but it would be nice to have [someone cool] do it.
- I need to have my wedding photographed (Uncle Bob), but it would be awesome to have [someone cool] record it.
- I need to have pictures of my baby growing up, so I’ll learn how to use a DSLR, but it would be phenomenal to have [someone cool] photograph us.
So, don’t undervalue your service. Sometimes, we don’t give ourselves enough credit.
What Defines Value?
All in all, even if your prices barely cover your costs, it doesn’t matter. Value is not based on money.
If prices denoted value, does that mean that my blog posts are worthless since I don’t charge a penny?
- Comment one example of a “luxury” product you might splurge on.
- If you found value in this, share via Facebook and Twitter via buttons below. Thanks!
Yours truly,
Lawrence Chan
P.S. I’ve kept Joanne waiting long enough. Time to go to the outlets!
P.P.S. She said, “hi everybody!” ๐
P.P.P.S. Words with Friends account: Tofulaw. Challenge if you dare.
I could easily buy ice cream, but homemade is a “luxury.”
See how the roles can be reversed? It’s not necessarily what you pay. Mmm… homemade mint & chip ice cream.
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Insipring as always L…
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Hi back, Joanne! Have a fun time visiting with each other!
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Perrier, Starbucks, Organic Chocolate…Mmm I think I’m getting hungry ๐
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Again, a brilliant blog post. As soon as I indulge in the luxury of a smart phone I shall challenge you.
Tell Joanne hi back from us!
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I never regret buying a fantastic pen or high thread count sheets or a great bottle of wine. I can write with ease, sip some vino and drift off deliciously into oblivion…
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So one question, how do you get people to view your work as a luxury? I put a lot of time into them, they look good, yet most people still see them as “just pictures” and not worth nearly as much as something else that they might indulge in that doesn’t even last a lifetime (like fancy food).
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Awesome, while reading the post i was like โIโm a luxury brand……kind of”. The way I thought of it is how countless times sense I raised my prices, (because of your eBook) I get brides and Grooms who tell me that either they love me and my work and will sale belongings to book me. Or There is also times when Iโm they go another route based on price alone but still take the time to tell me that if the could they would but their budget wont allow them. In either case I think itโs a testament to what youโre saying (I think). Iโm not a “necessity”, Think about it that way puts a smile on my face!! Awesome Post LC!!
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Did you buy anything at the Outlets?
A splurge would be Seven for all Mankind jeans, or a BIGGER splurge.. Louboutin shoes ( one day)
mint chip is my favorite… yummy
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A Canon 35mm 1:4 L series… now that I think of it, it’s not a luxury it is a necessity.
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Time is my biggest luxury right now! A day to spend alternating between relaxing, and getting to my projects, would be the best. Also, I now crave mint choco chip. MMMmmm. Mint choco chip.
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Hmmm, with my 450d my 35mm f1.4 became a necessity….the 5dmkii seems like a luxury compared to my 450d (top on my list now) but I think it’s a necessity (and will be luxurious compared to my 450d!) LOL!
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One thing I would love to splurge on is going to a salon and having someone color my hair, but I do it myself since I know how to do it and it’s so much less expensive…also because it would be a regular expense once started. Now things I do splurge on is camera equipment, a new purse and a wonderful new pillow. ๐
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I splurged on buying myself a diamond ring yesterday! So sick of cheap jewellery and realised that the only diamonds I owned up to now (not that many) were bought for me by others, definitely going through an independent woman stage ;o)
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Almost everything I buy is a “luxury.” Why buy 7FAMK jeans, when pants from Wal-mart meet my needs? Why buy a Doxa watch, when my iPhone (another luxury) tells me what time it is? Even my Hyundai Sonata Limited is a luxury compared to the base model. LOL!!
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Time is my luxury.
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To expand on that, what do you do with that time?
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I could run outside to exercise, but choose to have a gym membership. Thank you for sharing your wisdom man!
PEACE.
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Buying jewelry at Tiffany’s is a luxury for me. I don’t do it often but when I do, there’s something about the experience of shopping there from the little tiffany blue box to the service that I just adore.
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P.S. The game is on!
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Great Article! My splurge would be a weekly cleaning service…..and someday a trip to Bora Bora. Have a great day!
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Usually a dinner out is happy hour so a nice dinner in a fancy restaurant with amazing food is a luxury. A trip to the spa (something I never do) wouldn’t hurt either ๐
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I am afraid to challenge you at Words with Friends but I am more afraid that if I do not, I will regret it:) I will use my luxury iPhone to challenge you.
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ultra light hiking equipment is my luxury item of choice.
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