24.
“One of the biggest rip-offs in the luxury world is anything that involves ‘exclusive convenience’ packaged as sophistication. Rich people don’t just pay for the product; they pay to feel separated from everyone else. That’s where the absurd margins hide. A few examples that insiders quietly laugh about: hotel laundry services. This is probably the ultimate rip-off. You can charge $50 to wash one T-shirt because wealthy travelers don’t want to bother figuring out where the local laundromat is. The hotel labels it as ‘express cleaning,’ but it’s literally the same washer and dryer the staff uses for bulk linens.”
“Fine-dining supplements. Truffle shavings and wagyu ‘upgrades’ are a goldmine. The cost to the restaurant is tiny compared to the add-on price. Half the time, the truffle doesn’t even taste that strong — it’s there because the guest wants to signal that they can afford it.
Caviar service. People pay absurd amounts for a tin that costs the restaurant a fraction of what they charge. The theatrics (silver spoons, presentation, a staff member standing there like it’s a sacred ritual) do all the heavy lifting.
Private transfers from luxury hotels. A hotel will charge hundreds for a car ride that a regular taxi or Uber could do for $20. The only difference is that someone opens the door for you and offers sparkling water.
High-end fashion ‘basic’ items. A plain white T-shirt stamped with a luxury logo is the most blatant one. The material isn’t special, and the craftsmanship is often mediocre, but the markup is astronomical because the logo itself is the product.
Spa products. Hotel spas sell creams and oils at margins that would make a drug dealer jealous. The same formula, minus branding, is often available online for a tenth of the price.
What all of these have in common is this: Wealthy clients aren’t paying for practicality or value. They’re paying to not think, to feel important, and to show they can afford not to care about the price. And luxury businesses know that very, very well.”
—peter-faith
