Advice for Making the Luxury SellWhen presenting and pricing luxury items, add to the product's perceived value while eliminating any suggestion of commoditization.

Supple handbags. Opulent hotels. Sleek boats. There's always a market for the finer things in life. But although the luxury-goods category has a built-in allure, an exact formula for how to price items in this sector has proved elusive.

We asked Paco Underhill--CEO of retail-focused research and consulting firmEnviroselland author ofWhy We Buy: The Science of Shopping--how startup entrepreneurs should tackle pricing their luxury products to reach the greatest possible audience.