You will not hear leaders of luxury brands, large or small, openly speak about this. However, it is a business reality that when you decide to have exclusive clientele, serve limited numbers, or produce limited quantities of your product, you must carefully define the economics of your business model. It is difficult and nearly impossible to build a business selling just a few. Large luxury brands count on favorable economics of each unit and selling many pieces of multiple products to make the business successful. In most cases, entrepreneurs selling just a few do not have a business at all, but a hobby or vanity venture.

It’s prime season for retailing. The weather is nice, and I’ll be dashing in and out of retailers to shop and observe. After a long time indoors and avoiding people, I enjoy getting out, although I am still mindful of Covid. With mask on, I have recently visited several stores. I can report not much has changed when it comes to training retail associates. In New York, at least, they still shout, “The following guest!” to signal when they are ready to serve the next person.

In more than twenty years in luxury, I find this market particularly interesting. Without question, you must be proactive. However, what you should do depends on who you are, what you do, what kind of luxury you offer, and the aspect of the luxury market you play in.

Conversation about money is often met with knowing glances and whispers. The mere mention of money can make some people uncomfortable. However, the role money plays in luxury cannot be overlooked. Money is needed to produce products, market products, and we expect money when these products are sold. In fact, luxury pricing usually means a great deal of money because of the uniqueness of the product, service, or experience. Clients often wonder: “Why is this product so expensive?” It is because of the materials, time, craft, scarcity, and brand prestige, among other qualities.

Everyone has their opinion about recent events that took place at the Oscars. I won’t get into weighing in on who was correct and who was wrong. However, as I watched this event, and as I have watched other events like the recent Supreme Court confirmation hearings, coverage of the war in Ukraine, and of course, the war itself, I’m amazed at how comfortable we’ve become with the overall tone, tempo, and ugliness of living today.

If you run a luxury business, you might be puzzled by this moment. While mask mandates are being relaxed, you might not yet be enjoying sales at pre-Covid levels. You may have engaged in fewer marketing activities during the pandemic out of a belief there would be fewer results.

For several months I have been reading a newsletter, written by a young marketer about business growth. Most of what he writes about is old territory for me, but I have enjoyed how he approaches some marketing concepts. But today, I unsubscribed.

Shoplifting crime, where thieves, often in large numbers enter a luxury store and brazenly grab expensive items and run, have swept the nation. Face masks, the norm, after a two-year pandemic, gives robbers cover. Thefts are in daylight, and mostly by young people. They want valuable goods to sell online, and to have as their own.

Corporate culture describes the ways and norms inside companies. However, I think a better word, particularly for luxury entrepreneurs is atmosphere, because it describes the ways and norms that also surround the company. The word atmosphere describes the environment. It is the air in a particular place, the mood, the gases surrounding the earth or another planet. And yes, your company is a planet, different from the planet of another luxury brand.

When I think of luxury, I think of something that stops me in my tracks because it is so beautifully conceived, artfully executed, and satisfies me so completely, I want to revel in it, forever. There are hotel suites I do not want to leave. Dinners I do not want to end. I have garments that I love to wear, do not want to take off, and I love to look at. Now I ask you, how often do you encounter a product, service, or experience that meets that description?

I was recently walking the streets of Manhattan, on my way to a meeting. As I passed shop after shop, closed during the pandemic, and never reopened, I was saddened to see some of my favorite places, gone. Most of these retail businesses relied on foot traffic, and in busy Manhattan, this can produce sizable cash flow. But with a dangerous virus spreading, everyone in the city cautioned to stay home, and practically empty streets, it didn’t take long for business owners to decide it was time to close permanently.

A New York politician recently wore a gown to the annual Met gala, attended by celebrities, actors, and politicians, with the message, Tax the Rich. The stunt attracted lots of attention, discussion, and debate. It was a good idea for her agenda, but as a high-end marketer, I suggest you adjust that message to Support the Rich. Prominently display it at your business, so you don’t forget. And I’m not just talking about what’s in their bank account.

Each month we’re seeing better numbers on the decline of the pandemic. That’s gratifying, as many of us have spent a lot of time indoors over the last year or so. We’re now ready to get out and experience life again. Luxury, retail, and hospitality businesses are reopening. But if you’re a luxury entrepreneur, before you run outside, I hope you’ve used some of your time to carefully consider what you’re doing.