Price Increase Strategy..I'm curious.....

[Sweet Lime]

I was just thinking about this when I saw a few posts from people who bought to beat the price increase.
Maybe this is something everyone else has already figured out and I am a dunce, but I wonder if there is a method to the madness.

I wonder what the bottom line is for LV right before a price increase. If alot of people go out and buy bags they otherwise may have waited to buy or change their minds and not buy at all, and the profits for LV go up, maybe that is why they keep having price increases.

I am not sure, though, if people who don't buy regularly or don't read the purse forum even know that prices will go up. Just thinking about it.

 

[aliburke84]

it does probably spur purchases but i think it's also to protect the brand.

 

[vagabag]

That's an interesting point but i guess we'll never know the real reason.

 

[elle1777]

I wonder how high the prices will actually a few years down the road ... I can't even imagine!!

 

[LV Luvr]

I wonder how many people, besides TPF, know about the price increases in advance?

 

[elle1777]

^^ thats a good question

 

[LVKeepallfan]

^^Probably not that many. Only addicts like us would be on top of everything that has anything to do w/ LV.

 

[fairyztale]

I thought it is increase because of the dollar value right now..but i doubt that's the reason for it

 

[shopsinparis]

I think the reason for all the price increases is to protect their bottom-line. When you have many price increases you don't have to look at corporate waste, inefficiency and redundancy that cuts into profit. Let the consumer pay for it - sales haven't dropped.

 

[karolinec1]

TPF'ers know about the price increase WEEKS and possibly months ahead of most of the SAs. I scare them when I ask about it - they think I know someone at "Corporate". LOL

 

[IrisCole]

I just wish that I got raises as often as LV has price increases

 

[kenzo89]

Price increases are to do with one currency weakening and one becoming stronger, no? This would mean that prices are equivalent to the economy. For example, we've seen price increases in USA and UK because the Euro has gotten stronger, I think that is correct.

 

[caley]

i don't think many people are aware of price increases. i think us TPFers or people on forums are privy to this before hand. there may be a small increase in sales, but not enough for corporate to stand up and take notice.

i think it does have something to do with the economy though. also, there's always going to be people buying LV, so why stop with the increases.

 

[gelbergirl]

when i went to look at and consider my first LV handbag - the damier alma - I remember the SA sort of pressured me to get it before the price increase. I thought that was odd. At the time the bag was $600, still a good lot of $ for me, and I wasn't ready to make the decision yet. At that price point I wasn't going to worry about a few bucks.

 

[DreamingBeauty]

I think they will increase prices as long as they are continuing to sell the $ amount they are now. With higher prices they need less volume of sales. The economy in the US is weak right now, especially all sectors of retail. Store profits are down and you can just go to the mall and see that less people are shopping and buying than there were last year. I have seen this at several different malls and several different stores in the mall. Luxury brands may be slightly less affected than mid-level brands b/c their core clientele may be less affected by the economy but they are still losing that aspirational customer that saves up to buy the luxury item. So if they raise the price the richer customer may not notice or care and LV still makes the same $ while selling smaller volumes of goods.