Having the best of everything (or at least a few things) appeals to everyone at some point, right? The best equipment, coffee maker, clothes—you get what I’m saying. Most of us have fallen for a really good commercial or ad at least once that tempted us to buy the fancy luxury version of something we already have.
According to experts, companies are delving in to attract those types of consumers right now. In a tactic called “premiumization,” businesses are enticing customers to pay the extra price for “better” products and services. This isn’t new—it’s been happening for as long as most of us remember. Why have a cheeseburger when you can make it a double with a combo for $2 more? It’s the same concept, but generally for more premium goods. (Your favorite fast food place may advertise their food as premium, but we have our doubts.)
Why all the commotion about the “first class experience” right now? Companies are practically dying to empty the wallets of their consumers, mainly the wealthiest. In the past several weeks, nearly 60 execs mentioned the premiumization tactic in earnings calls, according to the New York Times. Even Krispy Kreme is gearing up to release news about special donuts. Amusement parks like Six Flags are raising their prices, as well, in the name of an “elevated guest experience.”
It’s no secret that almost everyone is struggling right now—even huge multi-billion dollar companies are laying off employees left and right, along with payment cuts and much more. Frankly, a lot of businesses are trying to stay afloat.
A glimmer of hope for growth is selling luxury products and services to the wealthiest of the population, because people with money typically like to spend it. Whether it’s a Kohler smart toilet or 500 boxes of special donuts, businesses are hunkering down to make more funds as long as customers play along—and as of right now—they are.
People are paying more to buy premium products all across the world, influenced by the pandemic’s notion to “take care of yourself.” What better way to pamper yourself than buying the best of the best?
