La Mer’s Turnaround Started With One Decision Most Would Avoid
Same product. Same market. One uncomfortable change made it sell like never before.
La Mer is a skincare brand owned by Estée Lauder.
You might think ‘Dean, have you lost the plot, why are you talking about this?’
Well stick with me, because the story of this product will give us a lesson in increasing demand for our services.
One of its best-known products, Crème de la Mer, was originally created by Dr Max Huber, a physicist who was reportedly trying to treat his own burns following a laboratory accident.
He developed a cream using fermented sea kelp and a process he called “bio-fermentation”. The formula took years to perfect and had a compelling origin story.
When Estée Lauder acquired the formula, they introduced it as part of their skincare range.
However, the product did not perform particularly well in the early days.
The Problem
At first, La Mer was priced similarly to other premium skincare creams on the market.
But it failed to stand out.
Customers could not clearly see why it was any different from the other high-end creams already available.
The formula may have been unique, but from the outside, it appeared to be just another expensive moisturiser.
As a result, sales were slow.
The Change
Instead of reducing the price to attract more buyers, Estée Lauder made a surprising decision, they increased the price significantly.
Alongside this, they redesigned the packaging to appear more minimalist and luxurious. The product was also made more exclusive by limiting its availability to select department stores and luxury retailers.
Rather than focusing on technical details, the marketing centred on the story: a physicist creating a healing cream for himself, and a fermentation process that took months to complete.
The new pricing positioned it far above most moisturisers on the market.
A small jar began selling for over £100, and today, a standard jar sells for over £300.
The Result
Sales improved.
The higher price, combined with the story, presentation and selective distribution, led people to see the product as special and high quality.
It gained attention from celebrities.
Beauty editors wrote about it. And it became one of the most talked-about skincare products in the luxury market.
The higher price did not just increase profit margins. It increased demand.
So what can we learn from this?
If you want to sell more, don’t make it more accessible.
Make it more exclusive.
Price influences perception
When customers cannot directly measure quality, as is often the case with services, coaching, or specialist products, they look for cues.
Price is one of those cues. A low price can suggest something basic or uncertain.
A higher price, if supported by a strong story and presentation, can signal value, trust and experience.
The story and presentation matter
La Mer did not simply raise the price.
They built a story around the product that made it feel worth the investment.
Whether it is your personal background, your method, or the way you work with clients, it is worth thinking about how your offer is framed and communicated.
It is about the whole picture, not just the number
The price change was accompanied by new packaging, new positioning, and carefully chosen retail partners.
If you decide to charge more, make sure the rest of your business reflects that choice, from how you present yourself to the way you speak about your service.
Higher prices often attract more committed clients
People who pay more are often more serious about what they are buying.
They are not looking to “try something out”. They want a result, and they are more likely to do the work needed to achieve it.
This is not just about selling luxury goods.
It’s easy to think that dropping prices increases desirability.
It doesn’t.
It shows that cutting your price is not always the answer.
In many cases, charging more and clearly showing why can lead to better clients and stronger sales.