Prestige Pricing

A pricing strategy in which a high price is maintained deliberately because the price itself signals quality, status, or exclusivity. Unlike odd-even pricing, prestige pricing prefers round or high round numbers, avoiding the “budget” associations of price-endings below the psychological threshold.

Because the reference point is anchored at a high level, lowering the price can paradoxically decrease purchase intent — an “inverted demand curve” observed in luxury goods, premium real estate, and high-end professional services. Discounting risks damaging brand equity, which is why luxury brands structurally avoid sales.