So here’s something that shouldn’t shock us, but somehow, totally did:
We were having a nice morning chat with a friend of ours that works at a Louis Vuitton boutique and she said:
“Oh god, I have to help re-tag all the items at the store tomorrow. So annoying.”
Why? Is there a sale?
“No, we’re just upping the prices.”
Why?
“We always do. Like twice a year, we up all the prices by 5%.”
Why?
“I have no idea. Because we can?”
And there you have it.
posted by Lala
Aug 19, 2008 12:43PM
That makes me sick to my stomach, there was a time when carrying LV bag was a sing of good taste and i would look up with joy when my mother or aunt had a new LV, now those days are gone, all thank's to Mr.Jacobs and his art loving nonsense.Cant the bag just be a bag?Why tacky up the mongoram and upp the price for no reasnoble reason?
posted by guest
Aug 19, 2008 1:17PM
with the weak dollar, retailers have to mark up the retail dollar amount to maintain their profit margin despite the shitty exchange rate for goods coming from europe (and therefore bought for the stores with cost in Euros). If they kept retails the same with the exchange rate as it is, their profit margin drops. I'm not saying it doesn't suck, but thats the explanation.
posted by guest
Aug 19, 2008 1:43PM
Guest at 1:17, while adorable that you took a comm college econ class that's not the reason.
1 - the do it all the time, for many years. it reflects general inflation rates as well as keeps the brand in its luxury positioning.
2 - the "exchange rate" is and of itself doesn't affect anything, assuming goods were marked with said calculations. on european goods that are imported into the US, the dropping dollar is actually beneficial. for example, say the price of a bag is 1,000 dollars. if the exchange rate was even, european retailers would get 1,000 euros for each sale. as teh dollar weakens and euro strengthens, however, they can now exchange said dollars for an increasing amount of euros
xo
posted by guest
Aug 19, 2008 1:43PM
I love people who get up in arms about fashion houses raising prices "because they can." Of course, commenter 7 is probably right, but its a business people! They would be failing their stockholders if they didn't raise their prices because they could! LVMH is a publicly held company and their #1 priority is making a profit--whether that be by upholding an image, beautiful design, raising prices, or whatever. Don't forget that. I think that's actually one of the most interesting things about fashion. The collision of art and industry.
posted by guest
Aug 19, 2008 2:01PM
Guest at 1:43. Your maths is wrong, as is your economic logic. A weak dollar is good for US EXPORTERS. Imported goods become more expensive--it costs more dollars to buy foreign goods (whether from the factory in yuan or from the company in Europe)--so they sell the goods in the US at a higher price to keep their profit margin the same. As the dollar weakens and the euro strengthens, they can exchange the dollars for FEWER euros--as anyone who has tried to go to Europe recently knows. A few years ago you could buy a euro for $.80. Now you can buy a euro for about $1.47. So the $1000 bag is bringing a lower profit in euros. These big multinationals certainly hedge so these things may have less of a huge impact, but they do matter. Commenter 7 had her economics correct. Commenter 9 did not.
posted by guest
Aug 19, 2008 2:18PM
Commenter 9- no need to be patronizing. While my econ classes were adorable, i'm also a buyer who deals with mainly european luxury goods.. My point was that if the goods imported to the US are bought in Euros and then converted to a landed cost in US dollars, the exchange rate totally comes in to play. I have no idea if the US LV stores do their buys in Euro or in dollars, I was just offering a potential explanation that goes beyond "because they can". My point was just that the economy is a factor as well.
posted by guest
Aug 19, 2008 2:31PM
Well Chanel is going up 20% in November just as they did last year. Yesterday I snagged a black quilted lambskin clutch at Bloomingdale's that USED to retail for $995 and jumped to $1150 for $1295. Its just the cost of luxury goods.
Also LV isn't that fierce these days and you can STILL buy the pochette for $405. A good starter bag for someone craving a little lux.
posted by guest
Aug 19, 2008 2:46PM
Well Chanel is going up 20% in November just as they did last year. Yesterday I snagged a black quilted lambskin clutch at Bloomingdale's that USED to retail for $995 and jumped to $1150 for $1295. Its just the cost of luxury goods.
Also LV isn't that fierce these days and you can STILL buy the pochette for $405. A good starter bag for someone craving a little lux.
posted by fauvism3
Aug 19, 2008 3:01PM
I guess the joke is on #9. Is it that hard to grasp that a more highly valued euro hurts U.S. consumers buying goods because the price increases? Why is it that so many Europeans are flocking to the US to buy clothing, etc.? Because their own goods are cheaper here than at home. For reference please see the NY Times sunday styles circa two weeks ago.
posted by guest
Aug 19, 2008 3:50PM
It's just ridiculous and tacky to even purchase an uber-logoed handbag with the economy being the way it is now, anyway.
If you must own luxury (and, yes, most of us fashionistas MUST own luxury), then WHY oh WHY are we not purchasing MORE luxurious and LESS vulgar handbags, like Lanvin, McQueen, Margiela?
It's apparent that the "it" went "out" nearly two years ago. So what cultural sect keeps spending so much on logoed bags?
Whoever it is, I'm quite sure that neither I nor Marc want to know them.
And seriously, I really think that Marc's approach to the LV logoed handbag back in the day was supposed to be a tongue-in-cheek kind of thing. Don't hate the man for having a conceptual statement that American women completely misconstrued.
posted by dragonphly
Aug 19, 2008 4:09PM
I remember talking to an associate at Tiffanys who told me the same thing. At least once a year the prices are raised about 10%...
posted by sarahchivonne
Aug 19, 2008 4:46PM
I bought those tiffany's rings back in high school for about 90-95 bucks a pop. now, the same exact rings are about 115-130 bucks if not more since i stopped shopping there. dumb.
posted by fauvism3
Aug 19, 2008 4:46PM
LV hasn't been relevant in terms of fashion since the late 90's. I'm totally with #18, except that Margiela's handbags are ugly. But I would much rather have Givenchy, Lanvin, or Balenciaga than LV.
As an aside, isn't it funny that clothes are used to sell accessories on the runway? You can tell which lines matter and which just cobble together RTW to sell bags, shoes, and sunglasses. Fendi and LV, I am looking at you...
posted by guest
Aug 19, 2008 6:25PM
I suggest you read the book Deluxe by Dana Thomas to learn how some of the brands in the fashion industry are operating. Terms such as hand made, craftsmanship and luxurious have a different ring to them when you learn how accezzories, and hand bags in particular, are mass produced by children in the Far East to reap profits for the luxury brands. There isn't much craftsmanship and luxury left in most brands - it's all about making money for the shareholders (often an investment company that knows and cares nothing about fashion). Integrity is long gone, I'm afraid, replaced by logo bags that are nothing but free advertising for the brand. On his own bags, at least Marc keeps the logo print on the inside...
posted by fauvism3
Aug 19, 2008 9:14PM
Deluxe was well done but instead of rehashing Ms. Thomas' argument might you make your own statement? To the contrary of what you say, there is integrity in the accessories business--Thomas reports on the intricacies of the Hermes factory, the high tech Gucci production in Italy, and the mass-produced but still in France LV bags....to use your own example. Coach is the only brand she mentions that is made in China and acknowledges that it is.
I am sure there are others who are less scrupulous, but she mentions none in her book...
posted by guest
Aug 19, 2008 10:03PM
Surely this is a fake story. Louis Vuitton does not copyright!! If you see them in the "Adventures in Copyrighting" series, it is because they are being ripped off! This means they are gods that would never do us wrong! Right Faran? Or maybe they're doing this because they're turning all those profits over to their non-sweatshop employees. Or they're donating it all to the environment to combat what the evil Forever 21 is doing.
Please Faran and Fashionista, tell me this isn't true so I can continue to blindly shop at this bastion of truth and honesty and art for the sake of art!
posted by guest
Aug 19, 2008 10:34PM
Most people get a cost of living raise each year. Costs are always increasing. Long before the dollar started suffering so terribly against the Euro, the cost of fuel was rising, and this factors in to the final cost as well. While it is partially about upholding their image, it is a reality of producing goods. Every time you place a reorder you've got to check that the pricing hasn't increased. And usually, it has. Fun!
posted by guest
Aug 20, 2008 12:29AM
LOL! LV does this all the time and they never go on sale. it's been years since i've bought and worn LV but it's amazing how the pochette in epi leather i got for $200 back then is now $435, a musette i got for $400 is now over $800 and so on... no wonder my friend used to rationalize her purchases by saying they're "investments". hahaha. with the proliferation of fakes, i wonder if their resale value is worth anything these days.
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posted by guest
Aug 19, 2008 12:40PM
wow. shows that people are willing to pay anything for a designer bag. and louis vuitton must make such a big profit. personally i'd never wear something with LV stamped all over it. does this mean that other desginers, such as chanel and prada, do it too?