What do you think of today's retail prices?

[nairb49]

Re: What do you think of today's retail prices?



some great points!

servo-that was exactly what I was trying to get out, thanks for clarifying.

and on my tangent of cost vs. advertising, I believe onemancult has "hit the nail on the head" in that advertising allows houses to increase their prices, thereby increasing the exclusivity and general "aura" and hype surrounding a label, resulting in the increased sales in their diffusion lines. Kind of a rich-get-richer scheme. By advertising and charging more on their main line, they can charge and sell more on their diffusion lines. Mo money, less problems.

Faust, thanks for clearing those prices up for me. For Dries, a 5-10% increase in price is an interesting factoid. If the one of the reasons a Dior tee costs 200 is due to advertising, then an increase on a Dries tee from 150 to 165 doesn't seem so outrageous. The profit margin on the net cost is still astronomical, and so it all comes back to exclusivity, IMO.

[mike]

Re: What do you think of today's retail prices?

I would say in general many"designer" clothesare overpriced to some extent; but I believe it is alldepends if the consumer can justify the purchase at the given price.

[keith]

Re: What do you think of today's retail prices?

[quote user="JBull"]

...I am not sure about the
economic rationale behind the huge
mark-ups we have observed recently...

[/quote]

What rationale is necessary other than the obvious? Clearly the labels feel they can further maximize profits by increasing prices. They'd know very quickly if there was a consumer backlash. There's going to be an inflection point somewhere along the line where the rise in prices leads to a decline in revenue, but if the market continues to bear the cost...

And as to the question of worth that was raised further back in the thread, well, for the most part, wool is wool is wool. You're not paying for the worth of the clothes themselves, but for other values that are "intrinsic" to the clothes. Worth is personal and subjective.

I also don't know how Dries could make such a broad statement about the cost of advertising. Advertising would add an extra line item to your operating costs, but in a relatively short timeframe it could also allow you to drop prices, provided that the advertising is effective. It isn't a simple equation of "production + advertising = higher prices," the situation is much more complex.

[Faust]

Re: What do you think of today's retail prices?



I just wanted to rant a little more. As many of you know, I went birthday shopping over the weekend, and I must say that although I got some wonderful presents, overall experience left me a little angry as well. The prices are fucking ridiculous!!! Especially at boutiques. I had a pretty hefty budget (for me) of about $1.5k, but I felt very FAR from a power-shopper. What the hell? I bought the Collection Privee boots and the Rick Owens jacket at Barneys, and only because they were around 60% off the original retail prices. The boutiques were simply untouchable. Number Nine was the biggest joke of them all - I liked a pair of wool dress pants with applique pockets - price, $780. Are they retarded? Blazers at $1500 - 1700? No thanks. Comme des Garcons boutique was a similar story - a nice sweater, but nothing I'd lose sleep over - $300 ON SALE. Yohji Yamamoto boutique is not even on sale yet - nothing worthy under $1k. IF had 30% off, and I couldn't touch anything. At A, I did not really like anything or things I liked did not fit me, so that's another story, but overall their prices are through the roof as well. You know, I really want to support stores like A and IF, but I increasingly find it harder and harder to do. For the past few seasons it's been mostly Barneys for me during the sale time - otherwise I can afford to shop only in discount stores.

I wonder how long this market will last before the whole thing collapses? Will it happen ever? Is there something I don't know? Where is all the wealth coming from? I want to go there.

[sbw4224]

Re: What do you think of today's retail prices?

I think most of the wealth is coming from overseas through tourists. While I was in London I interviewed the owners from Pineal Eye and Hideout about their business. While both stores have different clientele and stock, they both said they wouldn't be in business if it weren't for the amount of sales they get from people visiting London. Both estimated well over 50% of sales from tourists. A and IF have somewhat of a worldwide reputation, and I would be curious as to see how much of their sales are from one-time shoppers visiting NYC.

[HellsRuler]

Re: What do you think of today's retail prices?



Definatley tourists pay the highest prices.It alwaysfeels like when you go someplace new you have to buy something.I guess prices rises , but living gets harder and more worse. People get accommodated to paying high prices because they feel special ( haha). Most of my friends are label whores , and companies take advantage of that. sometimes you must over look it. like my dad was raised differentley i guess that man would never pay more than 150$ for anything.....but me on the other hand [:$] well i could easily be one suckered to paying hundreds for dolce jeans...or whatever but i dont....bottom line is prices rise and people will suffer to be somewhat beautiful....hasnt it always been like this?? Think aout being young and people saying these brands are good and such....than growing up you think those are the right things to purchase. I despise louis vuitton for this.........and i threw up when my friend told me that he only buys lacoste polos for the alligator....What the duece. Who the devil will buy polos for a damn alligator. like a wise soul once said everything now is BUISNESS. its not like way back when, when people ran there own independent boutiques with clothes only made by them.....i also hate how brands hire celeberties for campagnes andpay them like 7 million.......and guess we have to pay and make up for there stupid loses....i didnt ask damn paris hilton to be on damn ads so why the hell should i pay. THe world needs help , people waste so much money on clothes they dont need when theres starving children and cancer to be cured. HELP US