With the economy in a downturn, many firms have been hard hit. Industries that sell luxury goods have been especially hard hit. One example of a luxury good sector taking a beating is the elective surgery market. The New York Times reports that dermatologists, facial surgeons and plastic surgeons have all seen a significant drop in demand.
Yet these physicians are not passive participants in the market. In a move that Marginal Revolution’s Markets in Everything would appreciate, physicians are slashing prices.
“In light of drastic consumer cutbacks on spending, some dermatologists, facial surgeons and plastic surgeons are promoting the kinds of markdowns, coupons or two-fers you might expect to find in supermarket circulars — complete with restrictions like ‘offer not good with any other promotion.’
…surgeons list promotions like $500 off a single operation or $1,000 off a combination of body or facial surgeries.“