By Eddie Mugulusi
Let’s talk about premium.
Everywhere I look, I see small business owners trying to “go premium.” A boutique with imported clothes. A café with overpriced cappuccinos. A spa with scented candles and Instagrammable mirrors.
The thinking is simple: slap a higher price tag, call it “exclusive,” and boom—you’ve joined the luxury club.
Not so fast.
Here’s the problem. If you’ve never lived as a premium consumer, it’s almost impossible to run a successful premium business.
Premium Isn’t About Price
The rich don’t buy things the way you think they do. You imagine them walking into your store, looking at the price tag, and nodding because “money isn’t a problem.”
Wrong.
Premium buyers don’t focus on price, true. But that’s because they’re focusing on other things. Experience. Status. Story. Scarcity. The way the product or service makes them feel in a room full of their peers.
And unless you’ve lived in their world, you probably don’t truly understand those triggers. You’re just guessing.
The Rich Mindset Is a Different Planet
Think of it this way.
Imagine a wealthy man trying to start a business in a poor neighborhood. He’s never been poor, never lived in a slum, doesn’t know what it feels like to choose between rent and food. To him, money is just numbers on a bank app.
Now, he walks in and tries to sell a “budget food joint.” How do you think that plays out?
Exactly. He misses the whole point because he doesn’t know what money means to that market.
It’s the same when you, a non-premium consumer, try to run a premium business. You might get the “look” right—the fancy chairs, the designer wallpaper, the imported inventory—but you’ll miss the essence. And premium buyers smell that a mile away.
Why Educated Guesses Won’t Cut It
You can Google “how rich people think.” You can binge-watch luxury influencers on YouTube. You can even read books about wealth psychology.
But here’s the reality: until you’ve lived as a premium consumer, or spent significant time in their world, you’re just making educated guesses. And those guesses only get you so far.
The rich don’t just want stuff. They want a story. They want to feel like they’re buying into a lifestyle, not just buying a product. And if you can’t deliver that, your “premium” boutique quickly becomes just another overpriced shop in the neighborhood.
Let’s Give This a Name
I call this trap the Premium Illusion.
The illusion that premium is about charging more.
The illusion that luxury is about beautiful spaces.
The illusion that exclusivity can be faked with shiny shelves and foreign stock.
The Premium Illusion blinds a lot of small business owners. They invest big, price big, and then wonder why the “big spenders” aren’t walking through the door.
The Hard Question You Need to Ask
So before you set up a business for the rich, pause and ask yourself:
- Do I really understand this market, or am I guessing?
- Have I lived among them long enough to see how they think?
- Am I designing an experience they value, or just one I think looks expensive?
Because if the answer is no, then maybe your lane isn’t premium. And that’s okay. There’s money in the middle and bottom of the market too—if you know how to serve them well.
The Takeaway
Running a premium business isn’t about high prices or gold-colored logos. It’s about truly getting the premium consumer—their values, their mindset, their triggers. And unless you’re part of that world, you’ll struggle to fake it.
So next time you’re tempted to “go luxury,” remember the Premium Illusion. Don’t just build a business that looks expensive. Build one that understands the people you’re trying to serve.
That’s the only way you’ll ever win in the premium game.
Unlock your true potential 