How to sell luxury in today’s market

While watching TV last weekend, one particular commercial made me realize just how much the market is changing. Actually, it wasn’t really the whole commercial but a particular line — their tagline was “Lowest Cost of Ownership” and referred to Lexus’ decent fuel economy, durability, and resale value.That’s interesting because they used to run pre-Christmas ads for their “December to Remember” events featuring a loving spouse giving his or her significant other a new Lexus wrapped in a big red bow.

Even Hyundai’s doing it — in their most recent ad, they noted that the new Genesis sedan ($33K) has the same sound system as a Rolls-Royce Phantom ($300K+). “If you’d rather have money than a hood ornament,” goes the ad, the Genesis may “look even better than a Rolls-Royce.” *Nice. *

At the end of the day, the ‘I-buy-it-because-I-can” mentality is dead. No one wants to look like the idiot who bought something because it’s expensive anymore. **If you’re selling to this market, you should be focusing on practicality, value and durability. **