There will always be a market for luxury goods, that there will be no need to lower the price tag on them. Instead, luxury retailers will offer up enticing incentives to their consumer base, rather than cheapen their brands by lowering prices. Case in point, I received a $1K gift certificate from Cartier the other day, good for my next purchase of $5K or more. Cartier's marketing department made good at spinning the details of a discount, to look more like a gift to recurring customers.

In the automotive industry, the MSRP rarely drops in value... instead auto dealerships are quick to offer incentives such as free oil changes for a year, extended warranties, or free gas cards worth a certain dollar amount.

If, however, you are referring to other retailers who sell luxury goods, their prices are entirely subject to the cash flow of their stores. For instance, if you go to some jewelry districts in any major city, you could haggle down the price of a Rolex/Movado/Cartier/Breitling/Rado watch... especially if you offer to pay the full amount in cash.
Source(s):
Personal shopping experience at both high-end retailers and mom & pop shops with luxury inventory.


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