Let's Talk About the Price of Bags Across the Board, Are they Crazy or am I?

TPF may earn a commission from merchant affiliate
links, including eBay, Amazon, and others

#226
I have been very strict with myself and money throughout my life to date and have only very recently become interested in designer brands, specifically bags. I’m in that zone where my disposable income has increased as I’m older. I have no idea how younger people can afford (or even justify) the costs involved.

What really annoyed me lately was this game Hermes play of making it so difficult to find items, they seem to almost deliberately avoid developing a good online offering. I was in the market for an Evelyne TPM and was reduced to stalking the website for weeks! When I finally saw one in a colour I liked, Christmas had passed and the price had gone up by 20%! Inflation in general and wages here have not been rising, this strikes me as pure greed on their part. I bought the bag, but it left me feeling like I’d been ripped off. I’m not sure I’ll be back for more. But then I’m probably not their target customer.
 
  • Like
Reactions: Caisah, Shelby33, MsHermesAU and 9 others
#227
nikka007 said:
I realised what the author meant I met my hubz mate from the US. He wears super casual affordable clothes, has a fairly normal car. But he owns a house near San Francisco in a very wealthy area. The house is slowly sliding to the ocean and the guy is like - yeah, what can you do (as it's not the only house he owns) :shocked:
Click to expand...

It really goes to the heart of what people measure as success and as a result, validation. It can be an emotional decision. Most parts of the world, money is regarded as a key measure of success. If you don't have the money to buy properties in affluent areas, or fly in private planes, designer bags are actually an affordable way of displaying that you have some wealth. It costs nowhere near as much as a mansion in Chelsea, UK or Newport Beach, USA - but it is a common accessory that you share with the rich.

In my country, there's a lot of poverty and almost inevitably, when the young start earning, it's to buy designer jeans, bags and expensive sports shoes. They may not be able to afford a house or car as yet, but they are on their way to looking the part. In that sense, I have been listening to a lot of hip-hop lately and almost every second song will make a reference to wearing Gucci, Louis or Versace.

And I think that is what marketers tap into, when pricing these bags so high and what papertiger is querying - just how much is someone prepared to pay for visible signs of success, for that kind of validation?

Sparkletastic said:
Possibly. But IMHO, being a jerk knows no wealth, class, or status level. It’s a heart or moral issue. If a person (idiotically) thinks they are “entitled” or “better” in any way, they will treat those around them as less.

A person can be gracious when they reach the “next level” or a PITA when enjoying perks for the thousandth time.
Click to expand...

True. A sign of a gentleman is that he treats both the prince and the pauper with equal respect.
 
Last edited:
  • Like
Reactions: chessmont, Creativelyswank, ninakt and 4 others
#228
BindiBabe said:
It really goes to the heart of what people measure as success and as a result, validation. It can be an emotional decision. Most parts of the world, money is regarded as a key measure of success. If you don't have the money to buy properties in affluent areas, or fly in private planes, designer bags are actually an affordable way of displaying that you have some wealth. It costs nowhere near as much as a mansion in Chelsea, UK or Newport Beach, USA - but it is a common accessory that you share with the rich.

In my country, there's a lot of poverty and almost inevitably, when the young start earning, it's to buy designer jeans, bags and expensive sports shoes. They may not be able to afford a house or car as yet, but they are on their way to looking the part. In that sense, I have been listening to a lot of hip-hop lately and almost every second song will make a reference to wearing Gucci, Louis or Versace.
Click to expand...

Yeah, I totally get it. My perspective apart from the affordability of designer goods (as opposed to a quality flat in London which would put me in million year mortgage ) is also - don’t want to live my family’s/friends lifestyle but my very own
 
  • Like
Reactions: Sparkletastic, papertiger and BindiBabe
#229
Diamondbirdie said:
I have been very strict with myself and money throughout my life to date and have only very recently become interested in designer brands, specifically bags. I’m in that zone where my disposable income has increased as I’m older. I have no idea how younger people can afford (or even justify) the costs involved.

What really annoyed me lately was this game Hermes play of making it so difficult to find items, they seem to almost deliberately avoid developing a good online offering. I was in the market for an Evelyne TPM and was reduced to stalking the website for weeks! When I finally saw one in a colour I liked, Christmas had passed and the price had gone up by 20%! Inflation in general and wages here have not been rising, this strikes me as pure greed on their part. I bought the bag, but it left me feeling like I’d been ripped off. I’m not sure I’ll be back for more. But then I’m probably not their target customer.
Click to expand...

That does sound like a rip-off - I hope though that the quality of the bag is good and that you really enjoy your bag. :) Oddly enough your username and your experience reminded me of a time that I worked at De Beers. De Beers was actually famous for playing that game - creating exclusivity and manipulating prices - as they did with diamonds and doing so for years. Here's some excerpts of a very old but still relevant NYT article (Jul 2000) that references it but see also how they recognise the power of luxury goods advertising/marketing.

De Beers Halts Its Hoarding Of Diamonds

De Beers Consolidated Mines, the diamond company that reigned as one of the most powerful monopolies of the 20th century, announced yesterday in London a seismic shift in the way it does business.

It will retreat from its 70-year-old practice of manipulating prices by hoarding the world's diamonds and will charge into the advertising-driven game of selling the stones as branded luxuries.

The strategic overhaul, analysts say, was driven by the anemic performance of De Beers shares in recent years and by public-relations fears that ''conflict diamonds'' from Africa are poisoning a carefully nurtured image that De Beers stones are symbols of ''love, beauty and purity."

''We all need to become more customer- focused and recognize the power of marketing to sell more diamonds,'' Nicky Oppenheimer, the company chairman, said in a news release.

De Beers, which was created 110 years ago in South Africa, controls two-thirds of the trade in uncut diamonds and owns mines around the world that produce about half the stones unearthed each year...
...
As part of the shift in business strategy, executives from De Beers said that the company would reduce its stockpile of uncut diamonds from $3.9 billion to about $2.5 billion toward the end of next year.

Over the last seven decades, De Beers has used that stockpile -- which it maintains in London and as recently as last year was valued at $5.2 billion -- as a way to absorb excess diamonds from Africa, Russia or anywhere else in the world that might lower the cartel price of diamonds.
With the money earned by selling off much of the stockpile, De Beers officials said they would expand spending on diamond advertising, while insisting that the company's trading partners do the same.

''There's a huge untapped opportunity for all of us in the industry to grow the diamond business and match the growth rates enjoyed by leading luxury goods companies,'' said Gary Ralfe, managing director of the company...
...
Diamond sales have grown far less robustly over the last 50 years than sales of other luxury goods. By reducing the stockpile and increasing advertising, De Beers executives have said they hope to experience the sales growth of items like Gucci handbags.
Click to expand...

I am not sure how all of this has worked out for them in the years that have passed, but it is interesting that they regarded luxury handbags as the business model to follow.
 
  • Like
Reactions: Dooneysta, Creativelyswank, Sparkletastic and 2 others
#230
BindiBabe said:
That does sound like a rip-off - I hope though that the quality of the bag is good and that you really enjoy your bag. :smile: Oddly enough your username and your experience reminded me of a time that I worked at De Beers. De Beers was actually famous for playing that game - creating exclusivity and manipulating prices - as they did with diamonds and doing so for years. Here's some excerpts of a very old but still relevant NYT article (Jul 2000) that references it but see also how they recognise the power of luxury goods advertising/marketing.



I am not sure how all of this has worked out for them in the years that have passed, but it is interesting that they regarded luxury handbags as the business model to follow.
Click to expand...
Ha, yes, I guess my username gives away the fact that my first love is bling! However, there are only so many large-ish diamond purchases a person needs in their life (e-ring, pendant, studs, maybe?) and once you have them they don’t deteriorate or get easily damaged and thus don’t need replacing. This is what De Beers are up against. Although there is a trend towards more designer/luxury pieces decorated with teeny diamonds and retailing at waaaaaay beyond their actual “value”- look at Van Cleef and Cartier with their pavé styles. As an example, my mother and I own the same Ebel watch, she opted for the diamond version. It has little stones round the bezel and on the face but was 3 times the price. I’m guessing the meleé (plus the labour) cost them a few hundred, if that, resulting in one gigantic markup.
 
  • Like
Reactions: kate212, SomethingGoodCanWork, Sparkletastic and 2 others
#231
BindiBabe said:
That does sound like a rip-off - I hope though that the quality of the bag is good and that you really enjoy your bag. :smile: Oddly enough your username and your experience reminded me of a time that I worked at De Beers. De Beers was actually famous for playing that game - creating exclusivity and manipulating prices - as they did with diamonds and doing so for years. Here's some excerpts of a very old but still relevant NYT article (Jul 2000) that references it but see also how they recognise the power of luxury goods advertising/marketing.



I am not sure how all of this has worked out for them in the years that have passed, but it is interesting that they regarded luxury handbags as the business model to follow.
Click to expand...

They still do, the diamond price is kept artificially high. As you know better than most, all but the biggest/most flawless/colourless or unique coloured diamonds are pretty much worthless as a transferable commodity. That's why we have diamonds-a-plenty set in silver and stainless steel, the price-points and mark0ups accelerate without much added adjustment to actual cost. There are plenty of rarer stones out there but it's all about the perception.

Do you have a link to the 2000 article by any chance?
 
  • Like
Reactions: Sparkletastic
#232
I don't want to get off-topic but on the subject of whether really rich people buy signifiers of or are interested in status symbols and semi-broke 'pretenders' flash designer symbols, I think it just depends on which locality or which 'world' people inhabit.

I don't know where this fantasy of thinking really rich people don't fall for crap, they do, it's just different crap. I know it it prob goes against hundreds of self-help books but it's like belief in Santa. Rich people have their own flashing of codes whether it's the car they drive, the locations they live or the spa/club they belong to. It seems to me we can't let ourselves believe rich people are just lucky, not better, not worse, not cleverer not stupider. It has been true that traditionally on 'the street' the clothes people stood up in signified how well/badly they did, people couldn't even open a bank account without a minimum amount and 2 refs let alone get a mortgage on a property or secure a loan for a business.

Plus, H Himalayan diamond-set Birkins are not bought by average earners or altruistic people with no interest in status (there are easier investments to take care of) and apartment blocks in fancy locations can be bought by foreign investment companies backed by gangsters and criminals. Designer bags have their merits and I did not start this thread as a means of snobbery or self-flagellation for those that enjoy a good ol' logo or the experience of shopping. I direct my vent squarely at the designer companies that take advantage. The logos of leather-goods used to indicate quality and exclusivity which facilitated status.
 
Last edited:
  • Like
Reactions: Caisah, foxgal, Pimpernel and 16 others
#233
papertiger said:
They still do, the diamond price is kept artificially high. As you know better than most, all but the biggest/most flawless/colourless or unique coloured diamonds are pretty much worthless as a transferable commodity. That's why we have diamonds-a-plenty set in silver and stainless steel, the price-points and mark0ups accelerate without much added adjustment to actual cost. There are plenty of rarer stones out there but it's all about the perception.

Do you have a link to the 2000 article by any chance?
Click to expand...

Indeed and to address that De Beers have developed the Forevermark range. From their website,

"Forevermark was launched in 2008 with the promise of diamonds that are beautiful, rare and responsibly sourced. Less than one per cent of the world’s diamonds are eligible to become Forevermark.
Each Forevermark diamond is inscribed with the Forevermark icon and a unique identification number. Invisible to the naked eye, the inscription is the Forevermark promise of beauty, rarity and responsible sourcing."

Sorry, I should have posted the link earlier.
https://www.nytimes.com/2000/07/13/business/de-beers-halts-its-hoarding-of-diamonds.html
 
  • Like
Reactions: bellebellebelle19 and papertiger
#234
BindiBabe said:
Indeed and to address that De Beers have developed the Forevermark range. From their website,

"Forevermark was launched in 2008 with the promise of diamonds that are beautiful, rare and responsibly sourced. Less than one per cent of the world’s diamonds are eligible to become Forevermark.
Each Forevermark diamond is inscribed with the Forevermark icon and a unique identification number. Invisible to the naked eye, the inscription is the Forevermark promise of beauty, rarity and responsible sourcing."

Sorry, I should have posted the link earlier.
https://www.nytimes.com/2000/07/13/business/de-beers-halts-its-hoarding-of-diamonds.html
Click to expand...

Thank you BB
 
  • Like
Reactions: BindiBabe
#235
nikka007 said:
My perspective is also - don’t want to live my family’s/friends lifestyle but my very own
Click to expand...
Completely agree. It’s not relevant to me what others feel are their status symbols or requirements. I pick my own.

That being said, I’m not immune to the concept or pull of status symbols. I just try to make sure I’m not carried away by their influence so I make silly decisions.
Diamondbirdie said:
Ha, yes, I guess my username gives away the fact that my first love is bling! However, there are only so many large-ish diamond purchases a person needs in their life (e-ring, pendant, studs, maybe?) and once you have them they don’t deteriorate or get easily damaged and thus don’t need replacing. This is what De Beers are up against. Although there is a trend towards more designer/luxury pieces decorated with teeny diamonds and retailing at waaaaaay beyond their actual “value”- look at Van Cleef and Cartier with their pavé styles. As an example, my mother and I own the same Ebel watch, she opted for the diamond version. It has little stones round the bezel and on the face but was 3 times the price. I’m guessing the meleé (plus the labour) cost them a few hundred, if that, resulting in one gigantic markup.
Click to expand...
What you observed is what puzzles me. Huge upgrades for pave (diamond dust) applications. I just won’t pay it.

But, then I won’t pay extra just to have a brand name piece of fine jewelry either. I prefer getting loose stones and having them set. Or non branded items and focus on quality aspects.

As with brands. I’m not immune to the pull of branded jewelry. But I only choose to pay the upgrade when the design is irrisistible.
papertiger said:
I don't want to get off-topic but on the subject of whether really rich people buy signifiers or are interested in status symbols and semi-broke 'pretenders' flash designer symbols, I think it just depends on which locality or which 'world' people inhabit.

I don't know where this fantasy of thinking really rich people don't fall for crap, they do, it's just different crap. I know it it prob goes against hundreds of self-help books but it's like belief in Santa. Rich people have their own flashing of codes whether it's the car they drive, the locations they live or the spa/club they belong to. It seems to me we can't let ourselves believe rich people are just lucky, not better, not worse, not cleverer not stupider. It has been true that traditionally on 'the street' the clothes people stood up in signified how well/badly they did, people couldn't even a bank account without a minimum amount and 2 refs let alone get a mortgage on a property or secure a loan for a business.

Plus, H Himalayan diamond-set Birkins are not bought by average earners or altruistic people with no interest in status (there are easier investments to take care of) and apartment blocks in fancy locations can be bought by foreign investment companies backed by gangsters and criminals. Designer bags have their merits and I did not start this thread as a means of snobbery or self-flagellation for those that enjoy a good ol' logo or the experience of shopping. I direct my vent squarely at the designer companies that take advantage. The logos of leather-goods used to indicate quality and exclusivity which facilitated status.
Click to expand...
Excellent post!
 
  • Like
Reactions: Murphy47, papertiger, bernz84 and 1 other person
#238
Last edited:
  • Like
Reactions: Creativelyswank and bellebellebelle19
You must log in or register to reply here.
Top