my encounter with a snotty person..

I know most of the time that occurs when they are clueless about other designers, but still...don't they know that there are bags that cost MUCH more than Coach? That are more high end than Coach? Do they not read fashion magazines at ALL?

I encounter this all the time. Growing up in rural New England, J.Crew and LL Bean were THE labels to wear at my high school. Coming from a family that really struggled financially, I definitely felt the sting of not being able to afford these brands and people DID get VERY snotty about them. I am pretty sure that none of us ever heard of much else, although in our defense, our local paper's lead story was frequently related to traffic stopping for an hour while a moose crossed the road.

In a similar vein, I have cousins way out in suburb-land that believe Abercrombie and Hollister are the epitome of high end fashion. Now that some of them are nearing the end of high school, I keep begging them not to blow their hard-earned money there since they may want something completely different when they go away to college in a larger city. Plus I don't mind being snotty about those brands because I work in civil rights and their string of violations is pretty lengthy. I feel free to discriminate only against discriminators, although I try to keep my criticisms restricted to social policy issues rather than related to over-pricing, low quality and just-not-cuteness.

I agree that the OP handled herself extremely well.
 
But, I might have said something like, "oh, I like coach too...they are so reasonably priced, but I totally splurged on this bag, but I couldn't resist" in the friendliest tone.

This is my favorite reply! I carry only Coach myself but I know what YSL is. Even if I didn't know what the designer/brand was, I would never say something like that. If you can afford more expensive bags then great, I think that's awesome! If you can't then buy what you can afford and love it! But no matter what one carries, one should NEVER look down their nose at another person's possessions.

ETA: Forgot to say that I think the OP showed true class!
 
i think in the end, you acted like a lady...which says more than a wonderfully gorgeous bag ever could. People like that girl need a reality check..I hate name droppers....