“Luxury good prices are not directly linked to any type of costs.
The art of luxury pricing lies in quantifying the value-to-consumer regardless of cost, competitor or market prices.”
-from a marketing report by Simon Kucher & Partners, the leading consulting firm on pricing in the world
This is great quote from Priceless by William Poundstone. It is one of the books I recommend in the ebook Free to Flexible: Four Simple Lessons About Cost, Price, Margin and The Options Available to The 21st Century Business. You can download it here.