Designer Labels Have Raised Prices By 60 Percent In Last Decade

Leah Bourne

bergdorf plans 2 Designer Labels Have Raised Prices By 60 Percent In Last DecadeYes you aren’t imaging things when you pick up a pair of shoes at your favorite store and realize that the price is much much higher than what you were paying even just two years prior.
Just look at the Hermès Kelly bag, according to The Business of Fashion, to see just how quickly prices are rising. In the US market, the famous bag in 2000 had a starting price $4,800, and now it starts at $7,600. That is a 60 percent increase. Another example is the Manolo Blahnik shoe that was a favorite of Carrie Bradshaw in Sex and the City. Her go-to cost $485 and exactly ten years later the style starts at $755. That is a 56 percent increase.
The US Consumer Price Index (a measure of the price level of consumer goods, published by the US Bureau of Labor Statistics), has only increased by 27 percent over the past decade, so there are clearly other factors at play here.
Some possible reasons for these massive price jumps? Experts point to the rising costs associated with producing luxury goods including the rising cost of raw materials, and rising labor costs. But that is only part of the story. Many brands are playing to the “exclusive pricing strategy” which factors in price and perception. The theory is that people think that things that cost more are inherently better. Burberry, for instance, is reportedly raising prices to increase its appeal to the upper end of its customer base and attract new, wealthier customers.
The real question here is what is the ceiling for wealthy shoppers before they say enough is enough.
Share your thoughts in the comments below! How much are you willing to spend on designer goods before you reach your limit? 
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