I’ve been getting WhatsApp messages lately about some South African artist working out of Holland who supposedly hit a record price for her artwork. It sounded impressive, but these days, who knows? We’re living in an era where spam, scams, and AI-generated illusions flood our feeds. I was just watching a video on Threads the other day—one of those “unbelievable talent” reels—and a sharp-eyed viewer pointed out: “This is all AI.” And they were right.
But let’s get to the serious stuff.
What actually lies behind premium pricing?
It’s a question worth asking—whether we’re talking about an abstract painting on a piece of cardboard or a bottle of whiskey priced at $250.
Is it audacity? Marketing? Pure luck?
Maybe a bit of all three. But let’s break it down.
1. Exclusivity Is the Game
The fewer the items, the higher the price. It’s not just whiskey aged for 18 years in a Scottish cave or a limited-edition canvas from a brooding painter in Berlin—it’s about scarcity. That’s what fuels desire.
You’ve seen it: A bottle store shelf suddenly sprouting a new brand of single malt with a name you’ve never heard of, priced well above your regular pick. Why? Because it’s “limited.” Or at least that’s the pitch.
Same with art. I was browsing a few galleries yesterday. There was a tiny oil-on-cardboard piece—smaller than an A3 sheet—going for R14,000. And a figure drawing in ink, done on a page ripped from an old book, priced at R4,000. That one wasn’t even A5. Other pieces selling for over R100,000 each.
2. Storytelling and Status
Whether it’s a whiskey distiller with 200 years of family tradition or a painter with a tortured backstory, the narrative sells. People don’t just want a product—they want to own a piece of a myth. That’s what they’re paying for.
Luxury is about status. It’s about walking into a room and letting the label—or the price tag—speak for you. That’s why German cars still command eye-watering prices, and why Japanese brands created upscale counterparts like Lexus and Infiniti.
3. The Veblen Effect
Here’s the irony: Sometimes the higher the price, the more people want it. Economists call these Veblen goods. The product doesn’t just maintain demand when the price rises—it becomes more desirable.
Think of whiskey again. I used to buy a decent one at a fair price until it jumped 40%. Naturally, I went looking for alternatives—and guess what? I found a better-tasting one for only R100 more. But the first one? Still flying off the shelves. Why? Because that price increase made it seem more special.
4. Reality Check: Dusty Canvases and Unsold Dreams
Back to art. The irony of some premium pricing is that it exists mostly on paper—or in press releases. You go back to the same gallery months later and the same canvas priced at R80,000 is still there, gathering dust. So who’s buying? Are they really selling anything at those prices?
Sometimes, premium pricing isn’t about moving product—it’s about posturing. Setting a high price can anchor the artist’s perceived value, even if nothing sells. It’s a brand-building game.
And Now the Question That Matters:
What’s your premium offering?
You don’t need a whisky barrel in your basement or a fine arts degree to think about premium pricing in your own life. Is there something you do—or could do—that’s exclusive, high-quality, or status-driven enough to command a higher price?
Remember: There are no hard rules. Just look at the market. If someone can sell a sketch on a book page for four grand, there’s room for everyone to dream a little bigger.
