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Luxury economics: Why Rolls-Royce cars continue to defy price logic
Luxury economics: Why Rolls-Royce cars continue to defy price logic
Rolls-Royce cars have been considered the epitome of luxury automobiles. The package of century-old brand reputation, sheer luxury, performance, bespoke design and feature elements, craftsmanship, and extreme exclusivity altogether come blended in a package that costs a fortune. While automobile brands like Mercedes-Benz, BMW, Audi, Porsche, and Volvo have been losing their exclusivity, as the number of owners for these cars has been increasing rapidly, Rolls-Royce is among the few carmakers that continue to maintain their exclusivity. The Rolls-Royce cars still make more of a statement of status and a work of art on wheels than a conventional passenger vehicle or a luxury car.
If you want to understand the economy behind the ultra-high pricing of Rolls-Royce cars, here are three key reasons why the British luxury car marque's cars defy the typical price logic.
Every Rolls-Royce means bespoke craftsmanship
Every Rolls-Royce car comes as a one-off model, customised and built to the preference of the consumer. This personalisation touches along with Rolls-Royce's strictly exclusive production numbers, ensures high demand for these cars among the ultra-wealthy buyers. One Rolls-Royce car needs at least six months and hundreds of work hours to be ready completely.The handcrafted touches of the highly skilled artisans, from hand-stitched leather upholstery to hand-polished wood trims, enhance each Rolls-Royce car's exclusivity. The legendary Starlight headliner is one of the most famous bespoke design elements of the Rolls-Royce cars, which involves hand-weaving of up to 1,600 fibre optic lights into the headliner to replicate any constellation of the consumer's preference.
The coachline pinstripes are another exclusive bespoke design element that is hand-painted by an artisan. A customer of a Rolls-Royce car can pick from more than 44,000 paint options or commission a unique paint scheme for his or her car. This requires a rigorous 10-week and 22-step painting process to achieve a flawless finish. For these elements, like rare woods, blemish-free bull hides are sourced from around the world.
Every Rolls-Royce means a magic carpet ride
Rolls-Royce is not just about aesthetics, but about technology as well. The Rolls-Royce cars, unlike many other luxury cars, don't focus on speed but on an effortlessly smooth, silent and luxurious ride quality that matches their sheer luxuriousness. Rolls-Royce designs its V12 engines to churn out a reserve of power that ensures seamless acceleration.The Rolls-Royce models come with advanced suspension systems that scan the road ahead and adjust the setup in real time. As the OEM describes, this technology delivers a magic carpet ride that insulates the passengers from outside imperfections. It's not only about suspension, but also sound insulation. Every Rolls-Royce car comes with extensive soundproofing and double-glazed windows that ensure the cabin of the car is exceptionally quiet.
Rolls-Royce means brand reputation and psychological pricing
For a certain number of Rolls-Royce buyers, it is about a matter of status and prestige, not cost-efficiency analysis. The premium pricing that the British automaker maintains deliberately is a well-thought-out strategy, which aims to reinforce the brand and its cars' image as the ultimate luxury item. In fact, the sheer high price itself is a key USP of the brand's identity, which influences a certain set of buyers' purchase decisions. In a nutshell, the Rolls-Royce plays with a psychological pricing strategy, and its consumers also incline towards that.Source: LiveMint
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