PETALUMA, Calif., Nov. 15, 2018 /PRNewswire/ -- Luxury companies make money hand over hand for products that, frankly, aren't that hard to match in quality. Now, there is a standard of quality that they do have to uphold, but they aren't charging what it takes in material and labor. They're charging prices that exceed hundreds of times what it takes to make them. But people pay those prices all the time. But why is that? Brandon Frere, successful entrepreneur and CEO of several companies, says that part of getting those high profit margins that many entrepreneurs dream of comes from not just having a product worth the cost, but having customers believe the cost is worth it.
Perceived exclusivity and luxury is the key to making a profit for goods and services well beyond the cost of what it takes to provide them. "It doesn't take several grand to make a Rolex watch," said Frere. "But that's what they charge, and that's what people pay for. They're paying for the name as much as the product." If a product is deemed worth the price by customers, not only will they pay it, but it winds up building its own momentum because then other people see that others are willing to buy if for the high cost, and suddenly they want it, too. Because they have perceived the item as high quality, now they have to have it, too.
Building up to that point where people are willing to pay the higher prices for a company's goods will take time. But an entrepreneur that is in the business for the long haul can wait for that time, working on multiple projects at once and heading towards that long-term goal. "When planning out a business and the model, it's good to have a goal, but it's equally important to be open to change and be flexible when things don't go according to plan," said Frere.
About Brandon Frere
Brandon Frere is an entrepreneur and businessman who lives in Sonoma County, California. He has designed and created multiple companies to meet the ever-demanding needs of businesses and consumers alike. His website, www.BrandonFrere.com, is used as a means of communicating many of the lessons, fundamentals, and information that he has learned throughout his extensive business and personal endeavors, most recently in advocating on behalf of student loan borrowers nationwide.
As experienced during his own student loan repayment, Mr. Frere found out how difficult it can be to work with federally contracted student loan servicers and the repayment programs designed to help borrowers. Through those efforts, he gained an insider's look into the repayment process and the motivations behind the inflating student loan debt bubble. His knowledge of the often confusing landscape of student loan repayment became a vital theme in his future endeavors, and he now uses those experiences to help guide others through the daunting process of applying for available federal repayment and loan forgiveness programs.
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SOURCE Brandon Frere