The Psychology of the $14,000 handbag
Based on an article, by Christina Binkley, August 9th, Wall Street Journal
What is too much to spend on a Handbag? The questions weighed on the mind of experienced shopper and fashion connoisseur, Jamie Anderson. “Their prices were just ridiculous†recalls Anderson who was pursuing the Christian Dior fall handbag collection with average prices around $900.
We’ve all been there: a window display lures us into the store where we nearly suffer cardiac arrest after viewing the price tag.
It seems to happen more often these days as many luxury brands—selling everything from $14,000 Ralph Lauren handbags to $899 Bugaboo baby strollers and $6900 barbecue grills—push their top price points higher than they’ve every gone before. What’s priced below falls into that ever-expanding category: “affordable luxuryâ€.
Some people flee when they are confronted with such extravagant prices. But for most Americans a strange psychological phenomenon takes place. We set a new ceiling for a “reasonable†price. Disinclined to purchase the trophy we settle for a consolation prize. Trombetta walked out not carrying a $1100 handbag but a $300 clutch.
This concept is one of the reasons for the proliferation of $300 designer sunglasses. The fact that Ralph Lauren is charging $14,000 for an alligator “Ricky†handbag makes it easier to justify the $300 for a rather simple sweater. The brains behind Coach are a master at this, look for a notably expensive bag in one of the company’s stores. Only one or two of them are available for sale. But scores of similar, smaller “wallet†size bags and accessories are available, primed to walk out the door.
What is the point in all of this?
The question nagging in the back of my mind is this: Are we investing our money and resources in things that will last? When you are around the world long enough one stops even feeling like $300 is a lot of money. I don’t want to be in that place.. Face it, we all typically spend far more money on ourselves than anyone else. It’s so easy for us to justify exorbitant prices on ourselves but when it comes to forking out that cash for someone else….we don’t even consider it. You don’t hear the fashion industry encouraging self-control and self-sacrifice; no mention of charity in the latest edition of InStyle. I want my money and my life to make a lasting impact. That means passing on the $300 clutch. =)
August 20th, 2007 at 5:37 pm
I was just thinking about this very topic!!! I can’t believe you wrote about it this very same week.
I was at a get together with some ladies and people were talking about how much they were spending on clothing and what-not. I couldn’t believe it. So much is being spent on things that are totally disposable.
I don’t know a solution for it other than leading by example!
August 20th, 2007 at 8:25 pm
We can lead by example and by showing others the joy in giving. I just heard the most amazing story about a missionary friend in Japan. He is a software developer of a company that grosses over $100,000 a day. Bill Gates and Microsoft recently courted this gentleman offering any sum if he agree to join their team. This humble man turned it down in because he would rather serve the needy in Japan. He and his wife live in a one room apartment and give nearly all of his extensive salary away. Now that is life worth emulating!
August 21st, 2007 at 7:34 am
“Only one life, will soon be past. Only what’s done for Christ will last.” Which includes spending habits. Great post, and rather a timely one. I cannot afford the $900 purse but I have been strugling with my priorities lately, as I would really like to be able to afford said purse. It is funny in a way, cause I know I would use the purse as I’d be affriad to damage it: )
August 28th, 2007 at 1:39 pm
Hello Dear,
You Rock! That is so true and I deeply admire what you said, I Think you hit the heart of the matter. It’s not all about fashion, or about money it’s the reallity that yes you can look fab for $20.00 (I do it all the time) but really it’s all about what is going to last the test of time- which non of that will. I say invest your money in the church and wisely into the people around you. After all its not ever yours or my money.
Thank You God,
CE