The business of love

Welcome back pricing people! Ready to feel the love? Today, we are unwrapping the economics of Valentine’s Day.

Cupid’s Cost

They say you can’t put a price on love, but the National Retail Federation has done just that and predicts Americans will spend a record $27.5 billion on Valentine’s Day – that’s over $180 per person.

Those planning to pop the question might want to think carefully before they put a ring on it. Gold prices hit 40 record highs last year, according to the World Gold Council. Amid continued economic uncertainty, the run has continued into 2025 with gold peaking at nearly $3,000 an ounce as central banks stockpile this safe-haven asset.

Meanwhile, the price of diamonds continues to fall. These precious stones cost an average of 26% less than two years ago, despite the period of high inflation. As the flurry of post-pandemic weddings tails off and lab-grown diamonds become more popular, the price of their luxury natural counterparts looks set to stay low for the foreseeable.

Oui can’t afford this!

Planning a romantic getaway to Paris? Be ready for l’amour to cost more. In the latest global tourist tax, President Macron has introduced a new levy for non-EU visitors to the Louvre to help manage overtourism and fund restoration.

So if the City of Love is off the cards, what else says ‘romance’? How about some noise-cancelling headphones. Not content with dominating Black Friday and Cyber Monday, electronics manufacturers are turning the day of love into a promotions opportunity with attractive price reductions on everything from phones to laptops.

Love might be complex, but so are the economic times we’re living in. If you’re still looking for that perfect partner to get to the heart of your pricing needs, get in touch today.