I think the point here is that luxury items have a cost:price ratio that is far off compared to non-luxury items, because they're designed to be limited, so your margins need to be greater per item.
I'd be willing to wager that the vast majority of luxury items on the market could be priced a great deal lower and still be wildly profitable for the companies putting them out, because these aren't low-margin items. They're extremely high margin items by nature, because they're specifically marketed to a group of people who don't care if they're high margin, because the price point is a selling point.
There's definitely some difference there. When you walk into a furniture showroom where every item is handmade by the guy who owns the shop, then the $5k sofa is probably a higher value item than the <insert designer> option at $5k, because he probably doesn't have the brand influence to drive demand for his goods allowing him to elevate his profit margins through that alone. Even if he pays the same for the materials as a big name designer (which he won't, because he's not buying in bulk), he can't charge anywhere near as much and actually sell it. But it can still be priced as a luxury item.
In the end, branding is a big deal.
But once that name is known; once people know an item is expensive by name alone, when they can tell it's expensive without knowing anything about product quality, that item's expense becomes a feature. Easily the most important feature, unfortunately.
That company still needs to produce quality items to keep their luxury status... usually. But they probably won't have the best on the market.
You know what? Here's an example. I'm wearing cologne right now that probably cost next-to-nothing to produce, but I still paid out $60 for a tiny bottle of it, and that's at the lower range for fragrances. There's a massive market of affordable fragrances available on the internet, but finding one I liked took so much more effort at that point, and now I can easily tell people what I'm wearing when they ask, and they'll have a context for what I'm talking about. It's a luxury item, and I absolutely paid for the name.
I legitimately enjoy the scent, but I still paid for a whole lot of branding there.
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IDrownFish wrote:
Anyways, you all are horrible, @#%^ed up people
lolgaxe wrote:
Never underestimate the healing power of a massive dong.