Position Your Brand with the Perfect Price Signal

Why does one luxury shirt cost four times more than another? It’s rarely about the cotton. In the luxury sector, price is a language. It tells the world who you are and what you believe in.

If you charge a luxury price, you aren’t asking for money for a garment; you are asking the customer to invest in a cultural identity. A Sigma strategist knows that the biggest mistake is price confusion, charging a high price without a story that justifies the signal. You must price the belief, not just the item.

The Secret of the £400 T-Shirt

Elena: Ayssar, I was just looking at these two brands. Both are luxury, but one is hundreds of pounds more expensive for basically the same white T-shirt. Is it just a scam? How do they get away with it?

Ayssar: (Setting down my coffee) It’s only a scam if you believe you are buying fabric, Elena. But in this world, nobody is buying fabric. They are buying a signal.

Elena: But a signal of what? They both look like high-quality shirts.

Ayssar: Think of it like this. One brand, let’s say Gucci, is selling a cultural identity. It’s loud, it’s artistic, and it says, “I am part of the current global conversation.” People pay £400 because that price proves the signal is exclusive. If it were £100, the magic of that cultural story would disappear.

Elena: And the other one? The Ralph Lauren style?

Ayssar: That’s a different promise. That’s about timeless aspiration. It’s quiet luxury. The £100 price point signals that it is premium and aspirational, but it’s meant to be approachable for those who value tradition over trends.

Elena: So, the price actually helps tell the story?

Ayssar: Exactly. A Sigma personality observes that price must be aligned with the narrative. If you try to sell a quiet, humble story but charge a loud, ego price, the customer feels the friction. They stop trusting the brand.

Elena: So when I price my own services or products, I shouldn’t just look at my costs?

Ayssar: Never. Ask yourself: What conviction am I selling? Who needs that signal? If you are selling “Total Mastery and Rare Access,” your price must be high enough to prove that you aren’t for everyone. Price is the filter that keeps the wrong audience out and invites the right believers in.

Alignment is the Strategy

The insight reveals that luxury pricing is a form of communication. Whether you choose to be loud and conspicuous or quiet and crafted, your price is the final stamp of authenticity on your brand’s story. If the price, the design, and the culture don’t line up, the luxury ecosystem collapses.

Key Takeaway

Don’t price for profit; price for positioning. Your price is a signal that tells your customer exactly where you sit in the cultural landscape. Before you set a number, define the belief you are selling. If the story is credible, the price becomes an investment in identity, not just a cost.