Latest / Pricing Power Podcast with Fexingo: How Businesses Set Prices, Raise Margins, and Win Customers
How Luxury Brands Raise Prices Without Losing Customers
Episode 64 of Pricing Power Podcast explores the mechanics of luxury pricing, using Hermès and its Birkin bag as the central case study. Lucas and Luna break down how Hermès manages scarcity, controls distribution, and raises prices aggressively—roughly 40 percent over the past five years—while demand only grows. They discuss the Veblen effect, why raising the price can actually increase desire among luxury buyers, and how Hermès protects its brand from dilution by never selling online or in outlet malls. The hosts also touch on the broader implications for premium brands like Rolex and…
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