How about indulging in a handmade silk designer piece from that new sustainable collection at that luxe boutique shop…sounds expensive doesn’t it? That’s because it’s meant to. When things sound expensive you’re willing to spend more.
Believe it or not, but when you hear certain words you’re willing to open your wallet wider and prepared to spend the big bucks. Words like designer allude to the perception of desirability that plays a huge role in the pricing margin of designer products. Sustainable is another buzzword. A recent report showed that what people truly want in their sustainable fashion is durability, quality, and style. For savvy shoppers, the main objective of sustainable fashion may not always be its ecological footprint. However, we don’t see a lot of transparency on how sustainable products are priced. The word, boutique, also benefits off the hype of exclusivity. Traditionally, boutiques boast unique products, carried in small quantities, and are usually specialised for a target shopper, but we all know that’s not true for every instance this word is used in. All these words lead to higher price tags because the more expensive something is, the more exclusive it appears and in turn, the more desirable it becomes.
Traditional retail stores know this. Just like they know to strategically place those little inexpensive extras next to the cashier, so while you wait inline to pay, you have time to look and consider. You’ve already committed to a purchase – so what difference do some extra socks and some cool hipster candy make? Well actually, those little extras mean a lot to a company’s annual revenue.
$$$ on the Price Tag
For a select few of these trigger words, the price tags are tied to how they’re made. Handcrafted means the product has taken more time to make and involves a hands on heritage approach. This idea of time and its value carries over to things like silk and cashmere. Again, these products are more expensive because they take more time to make. But traditional retailers take the price increase and inflate it 6-8 times more than the manufacturing cost. You probably already know that price inflation is common practice in traditional retail. However, because it’s such common practice, people expect to pay a higher price bracket when they see certain words, even though those prices often aren’t justified when compared to the manufacturing cost. Just because a product says ‘silk’ doesn’t mean it’s 100% silk, so don’t forget to check the care label.
The Truth, You Can’t Handle the Truth!
Actually, we think you’re totally equipped to handle the truth. You may be thinking, “Umm yo Grana, you sell cashmere, silk and even did a post on giving your outfit an elevated upgrade.” True, true and true. The difference is that our prices are always honest. We sell top notch products at a fair price. No tricks.