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Does the markup on luxury bags bother you?

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Aug 21, 2012, 1:01am   #1
L
Thread Starter
LynxR
Member
If you knew for a fact that only about 30% of the [insert favorite luxury brand] bag price is the cost of materials and labor, and the rest is profit/marketing, would you still buy it? Would it still make you happy?

I myself have a hard time paying $2500 for a bag, that maybe costs $800 to make. But I am really interested in different perspectives here.
Aug 21, 2012, 1:12am   #2
quackedup's Avatar
quackedup
Member
It probably costs way less than that to just manufacture a bag.

However, in saying that, i know that when im buying a bag from [luxury brand], i know im paying for the bag itself, the design, the brand, the marketing.
Just think about how many people are employed in the design house? all the people that respond to customer issue? And everyone else in between.
Its not just paying for a bag, its paying for all of that as well.

i have a hard time paying over $1K for a bag (not to say that i havent before but its hard to me to fork out 'that' much for a bag)
Aug 21, 2012, 2:04am   #3
kellyng's Avatar
kellyng
Member
honestly this issue doesn't bother me.

when i spend thousands(or more than that) on a bag,what i want is the craftsmanship,quality and special design(or classic design).

of course....if a luxury bag doesn't have these 3 elements,i will not buy it.
Aug 21, 2012, 3:28am   #4
t
tiramisuux
Member
Only a little, but i feel much better buying a more reputable brand that provides quality, craftsmanship and style, rather than buying a bag from a smaller, less popular company/brand that im not very sure of their quality etc. while Im still spending about $500-1000.
It's like building a skyscraper, would you hire a well known, reputable engineer and architect, or would you hire a smaller firm with less experience and reputation?

If I was paying good money for something, I expect it to last a very long time.
Aug 21, 2012, 6:04am   #5
tentativepurse's Avatar
tentativepurse
Member
According to the book Deluxe - how luxury lost it's luster, Louis Vuitton purses are 13 times more expensive when you buy them than what they cost to make, and other designers mark up only slightly less.
Aug 21, 2012, 6:29am   #6
MissFluffyCat's Avatar
MissFluffyCat
Member
The markup on things like sneakers is probably much worse, and those factory workers may not be treated as well as those who make luxury goods, so that kind of thing bothers me more...
Aug 21, 2012, 6:38am   #7
Mariapia's Avatar
Mariapia
Member
When you see ordinary Chinese-made bags that cost let's say $ 50.....the rip off is worse....
Aug 21, 2012, 8:07am   #8
OlgaMUA's Avatar
OlgaMUA
Style is Eternal
If you only consider the materials, then yes, the markeup is a lot.

But you are also paying for the marketing, the ads in fashion magazines, the fancy stores, the cool mannequins that are dressed by professional stylists, the employees all the way from manufacturing to the salesperson on the floor.

That said, i do think the markup is still a lot... After all, karl lagerfeld isn't exactly living the life of a pauper.. Granted, he earned it... But its due to people buying the product
Aug 21, 2012, 12:15pm   #9
indiaink's Avatar
indiaink
Clarity
To answer the question posed in the subject of this thread: No.

To answer your next two questions: Yes, and yes.

Originally Posted by LynxR
If you knew for a fact that only about 30% of the [insert favorite luxury brand] bag price is the cost of materials and labor, and the rest is profit/marketing, would you still buy it? Would it still make you happy?

I myself have a hard time paying $2500 for a bag, that maybe costs $800 to make. But I am really interested in different perspectives here.
Aug 21, 2012, 12:44pm   #10
QueenLouis's Avatar
QueenLouis
Member
Well yes, I'd rather they cost less, but obviously I love some bags enough, I've been willing to pay over $1k per bag.

I once saw someone post in another thread that up to about $500, you may be paying for quality, but over $500, you are pretty much just paying because of the brand. I agree with this. But if I want it, that's what I have to shell out.
Aug 21, 2012, 1:13pm   #11
AEGIS's Avatar
AEGIS
lettin' them have it
Originally Posted by QueenLouis
Well yes, I'd rather they cost less, but obviously I love some bags enough, I've been willing to pay over $1k per bag.

I once saw someone post in another thread that up to about $500, you may be paying for quality, but over $500, you are pretty much just paying because of the brand. I agree with this. But if I want it, that's what I have to shell out.


interesting
Aug 21, 2012, 1:27pm   #12
Vintage Leather's Avatar
Vintage Leather
Bag Lady
I refuse to buy a nice bag or good jewelry without excellent after-market service. I want to know that my bags can be relined, leather panels can be replaced, and straps can be re-affixed. I want to know my jewelry can be cleaned, checked, and repaired if I stop in any boutique around the world.

I pay a premium knowing that in 50 to 100 years, the company should still be around (they've made it between 45 to 180 years so far...), they will still take care of major repairs for me (when they discontinue servicing items, I often sell off large parts of my collection.), and that someone will always be there for me and my bags.
Aug 21, 2012, 1:45pm   #13
bebefuzz's Avatar
bebefuzz
Member
Personally, don't have a problem buying a luxury bag. Like many have already stated, markup on most clothing is pretty high. Clothing has always been known to have high markup. Make up and perfume are the highest, while electronics (tvs, computers) are the lowest.

considering that a decent non-luxury handbag that you'll tire of pretty quickly costs a few hundred and retains no resale value vs. a luxury bag that will be on trend and beautiful for many years and has excellent resale value... I'd pick the latter. :)
Aug 21, 2012, 5:39pm   #14
rainrowan's Avatar
rainrowan
where's my bag?!
It bothers me only in the regard when someone can afford it, but someone else can't.... it creates this material division, even if we're all avid admirers of the same brand.
Aug 21, 2012, 7:08pm   #15
papertiger's Avatar
papertiger
Member
Quote:
Vintage Leather;22675981]I refuse to buy a nice bag or good jewelry without excellent after-market service. I want to know that my bags can be relined, leather panels can be replaced, and straps can be re-affixed. I want to know my jewelry can be cleaned, checked, and repaired if I stop in any boutique around the world.

I pay a premium knowing that in 50 to 100 years, the company should still be around (they've made it between 45 to 180 years so far...), they will still take care of major repairs for me (when they discontinue servicing items, I often sell off large parts of my collection.), and that someone will always be there for me and my bags.
Me too, I have new, old, vintage and ancient relic bags, the staff and infrastructure that are needed to keep my little 'museum' ship-shape is worth the additional

The designer pyramid model of cost<profit that International designers means that the 'cheaper' designs that the brand sells more of subsidises the top of the range.

Buy the best of the best and buy it once, use it and keep forever. With inflation over the next 20 years it may be considered a bargain
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