That is not what they should do according to microeconomics because luxury goods are Veblen goods. Decreasing price would lower demand, at least until they lowered it enough that it was no longer a Veblen good.
Basic microeconomics is just that: basic and thus an oversimplification.
Turn them into insulation! This is what happens with old denim jeans: https://www.henry.com/residential/products/insulation/denim-...
Chanel; the ultimate luxury insulation.
Cut the price, this is basic microeconomics.
That is not what they should do according to microeconomics because luxury goods are Veblen goods. Decreasing price would lower demand, at least until they lowered it enough that it was no longer a Veblen good.
Basic microeconomics is just that: basic and thus an oversimplification.