Anyone Concerned About Price Increases...

[LizCordova]

I don't like the price increases either. I agree with the fact that Coach should just be Coach a bagmaker for middle America. Their quality has gone down since they started making their bags in China yet they mark up their product 400%. I would like to take a survey. How many of you would be willing to write Coach Corporate a letter about their price increases and how it is not justified? I for one am willing to put it in writing and mail a real letter not an email to them with my opinion and thoughts on their price increases and who they are marketing to!

 

[fieldsinspring]

I think it makes it even harder when the purse you pay full price for is at the outlets sometimes weeks later.. and even ebay sooner.. take for instance even the hottest bags like ali and carly.. on ebay they sell for quite a bit less!!

 

[Kansashalo]

I love Coach because it is COACH. If the price goes up- so be it. The price of everything goes up... just like the "price" you charge to work goes up every year.

Pretty much my attitude. I like Coach for their product so I don't have the "for that price I'll buy a LV, Chanel, etc." because quite frankly, I just buy what I like and what my personal market (aka my wallet ) can bear.

Plus, in our economy (US) the price of everything has increased - from utilities to milk to other high end designer handbags as well. So I'm not surprised. Shoot, ihas anyone been to the grocery store lately? Talk about price increases...

Will their prices change my buying habits? Not really...I'm already somewhat conscience of prices anyway especially in terms of leather vs fabric (and that goes for any designers). If anything, their price increase will lead me to just buy leather bags as opposed to fabric ones.

ETA: Honestly (and this is just the financial analyst talking) I would not be surprised at all to see Coach gradually start making other significant changes over the next few years or so such as closing down some outlet stores in or to severly limiting the number of outlets that they have much along the lines of Chanel or Burberry( because they do have outlets too just no where near as many as Coach).

 

[Bags4Bubbles]

Wow!! This is an interesting thread, and I love hearing some very valid points on the price increase... It was definately noticable this time around... I realize that it is acceptable for prices to go up, due to inflation & demand - but it seems in the past 2 years, they've been going up exponentially...

Honestly when a bag gets over the $500.00, I'm going to spend that $$ on an LV, not a Coach, even though I love Coach.

100%!! There are some things in the Fall catalog that I REALLY like... one of them is $798. It has already crossed my mind, that sure - I really like this bag... but if I put $200 more with that, that is one Balenciaga bag right there!!

I'm concerned.
What realy made me notice was when Angie posted her clay shoulder bag which really looks like the size of the shoulder zip and is 448!
I went back and looked through the catalog and realized everything was going up and sh*ts still made in china.

Having just taken an International Business class for my MBA, where alot of emphasis was put on China as a trading partner, I have to agree... The harsh realities of how much money a company can save by outsourcing are there, and China has an incredibly huge workforce that will work cheaply. (Factor endowment I believe,... see I learned something in class!! ) Anyhow... when you take into account that these bags are made in China, Coach is making money HAND OVER FIST on them...

Now add that to the fact that I can add a "measley" $200 to the Coach price and get a Balenciaga bag that was made in Italy? I am wondering how many other people will start putting these facts together...

...This is why Coach has a looooooonnnnng way to go before they break into the premier end of designer handbags. If they ever do, which, frankly, would require a wholesale makeover of their popular identity and pricing model. Rubber stamping the same tired yet classic feature all over every bag does not a luxury brand make.

My undergrad degree is in marketing, so I love talking about topics like this, and Cinediva - I think you hit the nail on the head. Once a brand's image has been entrenched into its customer's minds... its hard to replace that image with a new one. Thus, the power of branding...

If Coach truely wanted to target the lower AND higher ends of the luxury market, my professional suggestion would be to start marketing the higher end luxury line under a different brand name!! That way, the "Coach quality" would still be inherited... however they would be building a brand image, rather then trying to change one that has been around for quite some time. (How would you feel if Coca-Cola decided they wanted to start selling orange juice?)

Additionally... this is the same thing we see in automotive lines. The mid-range vehicles and higher end luxury vehicles are sold under two different brand names. A person that buys an Audi is most likely not going to be interested in a VW... however, a person that has owned VWs previously could look to move into the higher end vehicle and would connect the positive imagery from VW with Audi... Thus, they have built a brand image connection by establishing two seperate brands for different target markets...

Hope someone at Coach is reading this. (PS - I'm not working right now either, and available for hire. I'm a grad student, I work cheap as long as I can get a thesis topic out of it.... )

 

[willowsmom]

100%!! There are some things in the Fall catalog that I REALLY like... one of them is $798. It has already crossed my mind, that sure - I really like this bag... but if I put $200 more with that, that is one Balenciaga bag right there!!

B4B - I couldn't have said it better myself. I still love Coach designs and literally am in love with the python Camilla bag, but for $798, I think I'd rather throw a "little" more $ toward a bbag and not worry about is my $800 bag going to be on sale at the outlet a few weeks after I buy it? It's not that I don't like it, it's just that it seems to make more sense (in my mind at least) to throw a little more money toward a bag that is much more unique than something that is more "mass produced" (not to mention, potentially discounted in the near future).

If Coach truely wanted to target the lower AND higher ends of the luxury market, my professional suggestion would be to start marketing the higher end luxury line under a different brand name!! That way, the "Coach quality" would still be inherited... however they would be building a brand image, rather then trying to change one that has been around for quite some time. (How would you feel if Coca-Cola decided they wanted to start selling orange juice?

I agree again. And here's the thing, The Coca-Cola company does sell orange juice (Minute Maid), but you know it as Minute Maid, not Coke OJ (which sounds like a really disgusting version of cola! LOL!). So if Coach wants to tap into the high end market, like B4B suggests, they may be more successful doing so by marketing these higher price point items under a different name rather than raising the prices for all consumers and risking a loss of their main customer base.

I definitely am trying to curb how many bags I buy, but even though I liked a lot of what I saw in the fall catalogue, I will either skip it or head to outlets rather than pay full price in the future.

 

[cupcake]

I love Coach because it is COACH. If the price goes up- so be it. The price of everything goes up... just like the "price" you charge to work goes up every year.

I agree! I wear Coach because I like Coach style - not because it's a "starter" designer brand for me or because it's all that I can afford. Considering that I like Coach's style better than any other designer, I'm willing to pay extra even though I am not exactly thrilled with the idea. And, I don't think anyone can consider themselves a truly loyal Coach customer if they say that because of Coach's price increases they'd rather spend that money on LV, Chanel, or whatever other brand they consider better. If you are willing to spend that amount of money on another brand, but not Coach, your heart was never with Coach to begin with. Just my opinion...

 

[beljwl]

I think they have become overpriced. I used to only own Coach (I have approx. 20 Coach purses) and I have noticed over the last few years their prices are getting too high. I rather spend $575 for an LV Neverfull. Their prices are getting closer to LV and Gucci. If I am going to spend over $500 for a purse it is going to be LV or Gucci or some other high end brand not Coach. I think these price increases are only going to hurt them. I think people are going to move onto other designers at the same prices. I used to think Coach was a bargain for the quality you were getting but not any longer. My DH wanted me to get a Legacy bag at $698 a few months ago and went to Gucci and got a bigger purse I liked better for $550

 

[poddygirl]

IMO the outlet shopper and the boutique shopper are 2 different animals. Many people have expressed concern over paying full retail price for a bag and then seeing it in the outlet several weeks later. I will bet now that the higher priced bags from the fall catalog (Leigh, Miranda, and the $1198 baby I can't remember the name of) will *never* see the outlets as they will sell out very quickly. Personally, if I like a bag I get it then and there and don't play the "will it make it to the outlet game." I realize that everyone is in a different purchasing position but I think Coach has taken that into account with the new designs. There is really something for everyone and every price point in the boutiques now.

 

[shellyb17]

If you are willing to spend that amount of money on another brand, but not Coach, your heart was never with Coach to begin with. Just my opinion...

First off....I love Coach. Right now it's all I carry. But, their prices are going up, yet their quality appears to be going down (reference Pyari's thread). Their heart does not appear to be with their customer. Why would I pay $700 for a bag just to have the stitching unravel on the first use?

If prices are going to be on par with LV, for the same amount of money as the new Coach styles, I wouldn't think twice about spending my money on LV to get a better quality product for my money.

 

[Bags4Bubbles]

... but for $798, I think I'd rather throw a "little" more $ toward a bbag and not worry about is my $800 bag going to be on sale at the outlet a few weeks after I buy it?


...I agree again. And here's the thing, The Coca-Cola company does sell orange juice (Minute Maid), but you know it as Minute Maid, not Coke OJ (which sounds like a really disgusting version of cola! LOL!). So if Coach wants to tap into the high end market, like B4B suggests, they may be more successful doing so by marketing these higher price point items under a different name rather than raising the prices for all consumers and risking a loss of their main customer base.

Tee hee... I see we've brought you over to the dark side as well...

LOL... Thanks for clarifying that... yes "Coke OJ" was what I was getting at, probably not the best example - but I just pulled something out of my toosh. It does sound rather digusting when you put it that way, doesn't it? Perhaps Coke adding Champagne to their portfolio would have better taken into account the "luxury aspect" of this idea. (Who knows, they probably own Korbel or something.) Anyhow, like you mentioned they did the same thing by branding it differently under the name Minute Maid...

I *thought* this was where Coach was going with the Legacy lines... going to break off it or a spinoff from it, into a seperate brand eventually. (Who knows, maybe they are going to? A very LONG term plan?? ) As it stands right now though... ALL of the products are getting more expensive, and the Legacy products are just another product from Coach - there's no brand differientation.

I believe I see an outlet run in my future as well....

 

[CitCat]

IMO the outlet shopper and the boutique shopper are 2 different animals. Many people have expressed concern over paying full retail price for a bag and then seeing it in the outlet several weeks later. I will bet now that the higher priced bags from the fall catalog (Leigh, Miranda, and the $1198 baby I can't remember the name of) will *never* see the outlets as they will sell out very quickly. Personally, if I like a bag I get it then and there and don't play the "will it make it to the outlet game." I realize that everyone is in a different purchasing position but I think Coach has taken that into account with the new designs. There is really something for everyone and every price point in the boutiques now.

Not me. I buy boutique and outlets. But when we are talking about plunking down over $500, I'm not going to go for Coach. ( I say that now, but...ya never know)
And yes, I will freely admit, that I have a very hard time playing full price for a Coach bag that is going to be in the outlets in several weeks.
I'll pay full price for LV or Gucci, or even Fendi, if I just HAVE to have it. But Coach? I always balk at paying full price knowing there's a good chance I can get it at the outlet at some point or on ebay. And there are bags that I have bought at the outlet that I would have NEVER paid full price for, (my pastel Scribble hobo, and my pink and white zebra tote).
Maybe Coach should take a look at Coke and what happened when they changed the original formula.....just IMO though

 

[purse envy]

My DH said the same thing when I told him about that great black bag for $1100 in the Fall catalog. He told me that we would go get a Gucci for that price! I like Coach b/c it's affordable enough that I can get several bags versus just one. I tend to like 2 of everything so Coach's past pricing was perfect! You girls are so insightful!!!

 

[kallison]

honestly, the price increase doesn't bother me- EVERYONE'S prices have gone up. i mean, geez, look at the new lv love2 tote! but anyways, i'm about through with coach. but i really don't think coach is worth above $800 (like for the mandy or something)

BUT what bothers me is how coach is marketing themself in two very different ways. one on side, they have these incredible, pricier bags. but then they put out patchwork catastrophes and cartoony keyfobs? it just seems like a split personality to me. they need to decide where they want to go.

but not that i particularly care.

 

[cupcake]

BUT what bothers me is how coach is marketing themself in two very different ways. one on side, they have these incredible, pricier bags. but then they put out patchwork catastrophes and cartoony keyfobs? it just seems like a split personality to me. they need to decide where they want to go.

I agree. I suspect that this is their way to trying to make everyone happy and appeal to the masses. Patchwork, Scribble and such for the younger crowd; and Legacy, Carly, Ergo and such for the older crowd. I *think* that's the idea but I am not sure that you can have it both ways.

 

[batgirl0711]

i agree kallison...im really almost over coach. almost. its not the price that bothers me, its just the quality of stuff in there, there is TOO much patchwork that im just not liking. but they have beautiful bags (their satchel, shoulder bags, carly, etc)....i just wish they were made better and didnt need repair as often as they do