Fashion + Beauty
Tuesday, October 7, 2008
Just as we always suspected—status bag pricing is a bunch of crap
There's an interesting post on the Portfolio blog today about the real retail value of luxury bags. Writer Lauren Goldstein Crowe asked manufacturers Burberry and Nancy Gonzalez how they come up with their insanely high prices (a regular-sized, best-selling Nancy Gonzalez tote is at least $2,600 right now at Bergdorf's).
According to the Gonzalez rep, the pricing math goes as follows: "Of course, they're going to at least double the cost of construction.
But after that the only rule is, there is no rule. The bag is priced
according to what managers think a consumer will pay for it. I call it 'pricing for cool.'"
Seriously? Yuck. [
Portfolio]
Related: status bags, overpriced crap
-
Posted by Manny Thu Mar 13, 2008 3:15pm PDT
I can't leave the house without my Gucci fanny pack.
Report Abuse
-
-
Posted by Kelly Mon May 12, 2008 1:40pm PDT
Anyone who can't find a bag at Kmart or Walmart needs to have their head examined. For $2600, you could feed an entire African village for a month. It's shameful, obscene, and as far as I'm concerned, sinful to spend that kind of money on a handbag, or shoes, or a dress.
Report Abuse
-
Posted by Southernbelle1270 Mon May 12, 2008 2:05pm PDT
I would not pay that kind of dough for a handbag. However I find the quality of bags you get at WalMart and K Mart are cheap and poorly constructed. The best place I have found is Target their products are inexpensive and quality construction.
Report Abuse
-
Posted by Debbie M Tue May 13, 2008 11:29am PDT
Yes, we all know that the price of these bags goes way beyond what it costs to make them. Do we REALLY think that the classis brown Louis Vuitton is really all that? I think not. It's a status thing. Face it, we buy designer bags to impress not only ourselves, but those around us.
We want everyone to know that we are carrying a crazy expensive designer bag to show off our good taste and our bank accounts (or credit card limits!).
Designer handbag companies know this, which is why they send their bags to all the "hot" actresses in hollywodd. If thier bag get photographed being carried by Gweneth Paltrow, they're golden. All of us will most certainy pay a high price for the same bag.
Yes, it's a scam, but if you don't like it, shop at Target. Their bags are dirt cheap! I prefer the Jimmy Choo type. Shallow, perhaps, but boy do I feel fabulous with it areound my arm!
Report Abuse
-
Posted by christinajade Sun May 18, 2008 12:15am PDT
2600 for a purse? ummmmm NO!
But I LOVE MY COACH!!
Hypocrite? Nah, there's just a really big difference between $300 and $2600!!! I am hard on purses, really. I am one of those women you see with everything from keys and wallet to makeup and an Asus eee in her purse. For me, its a matter of saving money by spending a little more. I have never had a purse that cost less than $100 last longer than a month without a hole in the liner, a strap breaking, something. The coach tote I pack for everyday was right around $300, but I have had it for a year and 3 months, had it cleaned twice, and its still in great shape!!
Report Abuse
-
Posted by Fashionista Interns Wed Aug 20, 2008 10:56am PDT
That is so incorrect! The only fashion designers that subscribe to that pricing model are the ones that are failing financially!
Report Abuse