Correction on Price Increase

[CHANELboy]

Not all CHANEL pieces are increasing by $400...only the classic flaps are, they required the most amount of work in construction.

 

[cammy1]

chanelboy would you know how much he GST is going up by there se ems to be alot of confusion

 

[layla]

Not all CHANEL pieces are increasing by $400...only the classic flaps are, they required the most amount of work in construction.

Perhaps CHANELboy the classic flaps may require the "most amount of work in construction", however this is not the "true reason" for the price increase of almost one-thousand dollars on the classic flap bags in a little over one year! They are selecting for a certain demographic (customer).

"Since Lagerfeld took over Chanel, in 1983, more than a decade after the death of its founder, Coco Chanel, it has become one of the most profitable luxury brands in the world, with revenues estimated at more than four billion dollars a year. The company is privately owned and does not release earnings figures."
New Yorker article - http://www.newyorker.com/reporting/2007/03/19/070319fa_fact_colapinto
Chanel's new global CEO, 43-year old Maureen Chiquet is targeting "new wealth" customers. "More and more customers are acquiring wealth at earlier ages," Chiquet says, "defining wealth as a net worth over $1 million." These women have more cutting-edge fashion tastes."
Chanel's American In Paris - http://www.businessweek.com/print/globalbiz/content/jan2007/gb20070118_532070.htm

Some more insight into Chanel's exorbitant price increases and marketing strategy.

..."The ultrawealthy -- those with net worth of at least $10 million -- are demanding products and services that set them apart from those who are merely wealthy, he said. Retailers are obliging by creating increasingly expensive merchandise and limiting production. And the actual product often seems less important than how many people have it. "If my Louis Vuitton, which I'm paying a few thousand for, everyone has one, what do I get?" Pedraza said. "How do I get that exclusivity that I long for?"...

..."Not to be outdone, Chanel will launch a bag in December made of white alligator skin and diamonds. The iconic double-C clasp will be studded with 334 of the jewels, or about 3.56 carats. The chain strap will be made of white gold trimmed with more alligator skin. Only 13 will be available worldwide. Price: $260,150."...

[/SIZE]My point is: "When you hear hoof beats...don't think zebras!" In other words, sometimes it is what it is. And in this case it's pure, unadulterated GREED.

 

[Swanky]

I'm still buying

 

[layla]

I'm still buying

Yes, I realize some people will not be phased by the price increases regardless of the amount or the frequency.

As long as people continue to buy, Chanel will continue to raise prices again to generate profitable revenues and achieve the niche marketing (as stated in my previous posts) they want to cultivate and maintain.