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How Luxury Brands Use Scarcity to Control Pricing

Episode 10 of Pricing Power Podcast explores how luxury brands engineer scarcity to maintain premium pricing. Lucas and Luna break down Hermès and the Birkin bag strategy, where demand is carefully managed through limited supply and waitlists that can stretch for years. They discuss how Rolex controls inventory through authorized dealers, why Ferrari restricts production below market demand, and how Supreme's drop model created a resale frenzy. The hosts also touch on the darker side — from fake scarcity in fast fashion to the backlash against manufactured exclusivity. Specific numbers…

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