Why Do These Goods Cost so Much?
By Erica Emmich, CNBC.com
Lavish Luxuries
When it comes to quality craftsmanship and one-of-a-kind design, luxury goods reign supreme. Luxury also usually means a price tag that has consumers digging deep into their wallets.
While some people will pay big bucks for the high-end name alone, designers and manufacturers say they have reasons for their hefty prices. The item may be handmade or a limited edition, or the design could include an expensive fabric or piece of jewelry.
Whatever the reason, some consumers don't seem to mind. Luxury sales are on the rise worldwide. In fact, the demand for luxury goods has grown by double digits since the end of the financial crisis, according to Bain & Company. Retailers like Coach and Saks have seen their stocks soar over the past three years.
Here we take a look at some items that epitomize luxury - from six-figure cars to designer shoes going for thousands of dollars - and why they have those eye-popping price tags.
See the slideshow: Luxury Goods that may make you salivate but hold tight to your wallet.
Manolo Blahnik "BB" Snakeskin Pump
Price $865
Why are these shoes so expensive? The company says they're 98 percent made by hand with some of the finest snakeskin around. The high-end shoe retailer also says designer Manolo Blahnik has studied the art of crafting heels so they will be comfortable to walk in. The ball of your foot hits the same time your heel hits the ground, so you remain balanced. All of the components are hand chosen by Manolo Blahnik.
Valentino "Demetra" Alligator Satchel
Price: $19,500
Only three of this extremely limited edition bag exist worldwide at Bergdorf Goodman, in red, green or black. The company says the handles and zipper pulls are braided by a master craftsperson at Valentino's Atelier in Italy. Bergdorf Goodman also says the bag is constructed by hand and made of what it describes as "emerald alligator" skins. A smaller tote version is available as well, in a similarly limited edition of just two, in black or green, for $15,400.
Ralph Lauren Alligator Weekend Bag
Price: $24,000
Ralph Lauren says this exotic bag is 100 percent alligator leather and is crafted in Italy. The company also says Ralph Lauren captures the "American Spirit" with the finest craftsmanship of luxury-made products. This weekender bag is a piece in the Ralph Lauren Purple Label collection. MRPORTER.COM sells this big ticket item on its website, which caters to the male luxury shopper.
Christian Louboutin "Mikaraja" Shoes
Price: $ 2,095
Christian Louboutin says this evening shoe for men has become a favorite of industry editors, artists, and Mr. Louboutin himself. The loafers are designed with Indian embroidery detail finished by The House of Lesage, the legendary embroidery atelier that's been creating and embellishing designer goods since 1924.
Christian Louboutin also says these hand-embroidered beaded tassels on the loafer were crafted by Jean-Francois Lesage, son of The House of Lesage master embroiderer, the late Francois Lesage.
Neiman Marcus edition 2012 Ferrari FF
Price: $395,000
This six-figure, super-luxury sports car sold out in 50 minutes. What made this such a hot item? Exclusivity and a tempting package deal. Only 10 models were made exclusively for the high-end retailer, and the Neiman Marcus Christmas Book featured the four-wheel stunner in a package that included automatic enrollment in the 2012 Ferrari Winter Driving Experience in Aspen, Colo.
The FF jumps from 0 to 60 in less than 3.7 seconds and reaches top speeds of over 200 mph. However, the dog pictured is not included in the package.
See the full slideshow: Limitless Luxuries: Why Do These Goods Cost So Much?
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Luxury Boom: The New Big Spenders" premieres Monday, March 5 at 9 p.m. ET, with a re-air at 12 a.m. ET
For more info, visit luxuryboom.cnbc.com
