Louis Vuitton Raises Prices Up to 12 Percent
Regardless of whether you are a designer buyer or a designer window shopper you will no doubt know that the price of top designer brands such as Louis Vuitton are often above the price range of the majority. So when the brand announced that they were to bump up prices up to twelve percent due to currency changes they applied the increase to non-leather goods (Neverfull tote and speedy handbags) which account for most of their goods on the market.
It is an interesting discussion because the mark up on a designer bag is huge so many people will be thinking if this high fashion house really even noticed the currency changes around them, but at the same time, would a lot of their buyers notice the increase in the products they are buying? It is so common to walk in to a store which sells top brands and to notice that the prices are hidden; but maybe you are only noticing that the prices are hidden because the price might worry you or it intrigues you. Really though, the prices are hidden because a typical buyer knows what they want and they are buying it regardless of the price, so once again, would this buyer notice or care about the price change? If you are willing to spend well in to the thousands for a bag then does another couple of hundred really get missed from the bank account?
Similarly it is rare that a lower to middle class worker would look through a magazine, see the price of a Louis Vuitton bag and think “oh yes, I might buy that one day” and remember the price as they spend months trying to save, chances are most people are unlikely to be phased by the price changes and considering the price changes started in February, can you say that you noticed the price change?
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