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The best business ideas come from noticing what's working and doing it better, faster, or for a different audience.
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“luxury goods are the only area which is possible to make luxury margins”
business_strategyluxurymargins
What It Means
Only luxury categories allow for sustainable premium pricing well above cost
Why It Matters
Explains why luxury businesses can be more profitable than commodity businesses
When It's True
In categories where status, craftsmanship, or heritage create emotional value beyond function
When It's Risky
If market shifts to pure utility or competitors create better functional alternatives
How to Apply
1
Identify categories where luxury positioning is possible
2
Build brand story that justifies premium pricing
3
Maintain exclusivity while scaling
Example Scenario
“Premium skincare brand charging 10x more than drugstore equivalents by positioning around luxury experience and results”