Favourite item of clothing (1 Viewer)

SylviaB

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For what? I think most luxury brands target annual price increases far beyond inflation.
Well for example, those birkin bags. Why not increase the price instead of artificially limiting supply? That way you aren't losing money to rich people who are willing to pay big bucks for one, and you are still keeping the number of them in circulation low, unless loads of rich people want to pay huge amounts of money for them, in which case you'll be making more money.
 

seremify007

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Well for example, those birkin bags. Why not increase the price instead of artificially limiting supply? That way you aren't losing money to rich people who are willing to pay big bucks for one, and you are still keeping the number of them in circulation low, unless loads of rich people want to pay huge amounts of money for them, in which case you'll be making more money.
great question. I can only assume it’s a very finely calculated balancing act. Keep in mind though that the bags are not homogeneous so it’s not always as straightforward as changing price or limiting supply, but I’m sure that someone smarter than me has worked out what volume of sales they want in order to maintain exclusivity but also still have it just within the realms of attainable for the wealthy/elite as opposed to just a cash grab rip off.
 

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