When we buy premium, we also buy luxury. Be it a classy handbag or an expensive skincare. From classy gourmet to latest smartphone. We end up paying much more than expected. That too, happily. But why are we willing to pay much more than usual to these premium brands? But guess what, when you are buying that expensive sip of coffee or that luxury, designer outfit, you are playing much more that the price on that price tag. This is actually a psychology game. Many brands lure their customers with a hefty price tag. Heavier the price, more satisfying the shopping. Even if it means draining your bank account. Many premium brands not only cost you money, they play a mind game with you. They have become the masters of this mind game. Which eventually, convinces consumers to happily accept the high prices.
The psychology of premium brands
Now when you have come this far into the article, you must be having the same question. Why premium brands cost us so much? Many times, these brands do not even give any spectacular features. Yet they charge money of the mountains. But what drives the costumer go crazy? They are willing to come out of their budget and spend fortune. The answer is actually way more complex than you expected. The premium pricing psychology has been playing tricks on you. Their tactics and ideologies make you believe that spending the huge amount makes it right. The marketing plays an important role in setting the perception in consumer’s brain.
Breaking the illusion: What you are paying for?
There is this particular skill called ‘selling the perception’. And the luxury brands have mastered this skill. They have been heavily investing their money in marketing and their sparkling aesthetics. They capture your emotions to sell you the fancy new aesthetics. Even though, the difference of functionality between the premium brands and actually working medium range brand is not too much. A simple medical store cream may work in a same way as a premium branded one. Well, of course, not all products may work the same way.
The typical role of how we perceive what we see is enormous. We might not buy a handbag from a small and simple roadside counter. But if the same hand bag is kept in a luxury store with a hefty price tag with ‘launching soon’ and other stuff, there may be a long line for it! So you see, how these brands are creating an illusion in your brain.
Linking brands with identity
This is one of the important element of the premium brands. The society plays an external role in it. We often end up having identity attachment with brands. Sometimes these brands become a huge part of our lives. So big that we have to have their latest release. These brands start to define you. Not only this, they start to control your choices and even needs! We may end up thinking that:
- A particular brands suits you or your skin or your style.
- You may think that this is what your crowd uses.
- Or sometimes, you may just want to ‘pamper’ yourself with the treat of these brands!
- Linking them to your identity may also make you feel empowered.
- Considering that you ‘deserve’ a certain brand’s luxury is another factor.
However, these thoughts are not empowering, rather, they narrow down your freedom. You may want to avoid the other brands. Many brands are as effective as the expensive ones, just at cheaper price.
The status symbol of premium brands
Being socially active, we often get under the societal pressure. We are wired strongly to the social validations. We need to get accepted by society in order to accept ourselves. These social spheres make us fall into the trap of the illusion of these brands. The premium products give us the desire to gain approval of the social powerhouses. Considering a product ‘deserving’, ‘used in your circle’ makes it a part of your life. Using other brands may end up make you feel inferior. These brands become a symbol of status. Your brand become your symbol. You start to depend on them even more. Rather than finding your self-defined version, you depend on these brands to define you in the crowd.
How to break the chain of premium brands?
To maintain your sanity and save your bank balance, you need to break the chain. You need to get break free from their trap and learn how to come out of the illusion of these premium brands that cost you much more than your money! Here is how you can help yourself to find the true freedom.
- Time to understand and reclaim the conscious shopping.
- Be wide open with your brain to make conscious choices rather than getting lured by the ‘premium aesthetics’.
- Look out for the real price tag. Does the product deserve as much as it asking for? Ask yourself the real worth of the product before punching pin!
- Is the ‘premium brand’ actually worthy enough? Does the craftsmanship really give you what it is asking for? Will be long term or satisfy your need? Always keep these questions ready when on your next shopping spree.
- Avoid putting too much time on brands. They drain not only your bank balance but your attention as well.
- Redefine the real happiness. Satisfaction from premium brands would last only till the new release is in the market.
- Premium does not always mean that it is ethical.
Final thoughts:
These fancy premium brands are not only selling the products, they are selling the societal pressure, fear, sense of insecurity and much more! We seek validation and belongingness. The joy of luxury is costing us much more than just money. The real cost of these premium brands is being traded unknowingly. You are paying with your peace of mind and losing the financial freedom.
Remember, true wealth is actually being secure about what you own. Not seeking the validation from your peer or society. You need start taking control over your choices to break free from this illusion of ‘premium’. Add the clarity in your perspective, find what suits your need and not the desire. Buy what truly adds value to your life and not just to your social circle.
FAQs
1. Why do premium brands cost us more than usual brands?
They charge us for branding and marketing aesthetics. From packaging to retails and every other aspect, they charge their customers.
2. Are these premium brands better than other brands?
Not always. Just because a product is expensive does not mean it is better than the other [products.
3. Are there any hidden charges for these premium brands?
Yes, those hidden charges are being paid in form of your peace of mind and financial health.
