3 ms·
Who generally makes more money overall - luxury brand with a small market or run of the mill brand with a massive market?
by pfannkuchen 3y ago
Who generally makes more money overall - luxury brand with a small market or run of the mill brand with a massive market?
- itake 3y agoI think the margins are better for the luxury brand, so builders focus on luxury. It is much easier to focus resources ($$ and labor) on building 1 luxury building with 20% margin than building 10 buildings with 2% margin (and much higher risk that a single misstep results in a loss). In theory, this reduces pressure on the mass market properties, because it reduces the number of high-income people in the marketplace.