Luxury items often have a waitlist to buy. Why don't companies simply price the luxuries higher until they don't need a waitlist?
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And if it's just marketing, then what's the frame or explanation they use to tell customers why they're using a waitlist instead of raising the price?
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Because the waitlist is probably needless anyway. It just makes people want whatever it is more since its exclusive.
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Yes, but do luxury companies ever give an explanation? Like "We want to keep prices low for you as customers so we're going to just release slowly" or something?
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You need to signal along two seemingly opposite axes - exclusivity & demand - waitlist provides the second
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The waitlist is like a line outside the club. It serves as part of the advertisement for the thing.
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A few ideas
-variable pricing seems predatory, similar to how restaurants don't charge for reservations
-wait lists increase demand for the rest of their products
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pricing higher could lead to enough of a sales drop that profits drop as well
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I think it's to make the item more financially appealing and look more valuable. The more an item loses value in the secondary market compared to its retail price, the less desirable it seems. Rolex watches have a big rep for reselling for more than retail price
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Rules for marketing luxury:
Do not pander to your customers’ wishes
Keep non-enthusiasts out
Do not respond to rising demand
Dominate the client
Make it difficult for clients to buy
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Once they’ve sold to all the people who *would* pay more they’d still like to sell to the people who would not. Nothing would piss off people who paid more than seeing the price dropped after they bought.