At least a better experience than shopping for a purse?

[1sttimerolex]

Just read this article and my jaw dropped a little at how Chanel raised their retail price of a bag 3x in 1 year at $1000 increase each time. For the same bag! https://fortune.com/2022/06/21/chane...inflation/amp/

And ppl are still lining up to buy them?

Wonder if Rolex pulled something like that, if it would actually backfire unlike what seems to be happening for Chanel.

[RoRoRo]

doesn't matter if they push their prices up, it's market positioning on their part. if you can afford you buy, if you can't you'll have to look elsewhere.

[joli160]

At least it’s an outstanding shopping experience at Chanel

[brandrea]

Thank god I don’t need a purse

[Mystro]

Originally Posted by RoRoRo

doesn't matter if they push their prices up, it's market positioning on their part. if you can afford you buy, if you can't you'll have to look elsewhere.

^^^and that sums up Rolex. A msrp of $12k or $18k for a steel Sub wouldn’t change the demand within the buying demographic.

[beshannon]

Originally Posted by 1sttimerolex

Just read this article and my jaw dropped a little at how Chanel raised their retail price of a bag 3x in 1 year at $1000 increase each time. For the same bag! https://fortune.com/2022/06/21/chane...inflation/amp/

And ppl are still lining up to buy them?

Wonder if Rolex pulled something like that, if it would actually backfire unlike what seems to be happening for Chanel.

Which brand has merchandise in stores to actually buy? There is your answer

[1William]

Interesting. The luxury goods segment is full of these types of stories.

[JasoninDenver]

Hell, my wife has bought three Louis Vuitton bags in the last two years and watched as each one has gone up at least 30% in value on the secondary market. So, it seems like LV is like Rolex in setting up pricing at only mildly overinflated levels despite the market would actually support hyper-inflated values.

[bwdellorf76]

The perceived inelastic demand in these goods is more a result of scarcity marketing. Historically, luxury goods were more elastic and demand changed based on economic conditions. The only true inelastic products are tobacco and prescription drugs.

[FrogWatch]

The sought after Chanel bags are still very tough to come by. Not like Rolex or Patek right now but you definitely can't walk into your local boutique and expect to find all lines available. Classic bags are super tough to find in the smooth/non pebbly leather.

[VogelPhoenix]

Originally Posted by 1sttimerolex

Just read this article and my jaw dropped a little at how Chanel raised their retail price of a bag 3x in 1 year at $1000 increase each time. For the same bag! https://fortune.com/2022/06/21/chane...inflation/amp/

And ppl are still lining up to buy them?

The same boutiques where SAs were stumbling over each other to help customers now have lines of eager customers every day of the week. Baffling.

I'm skeptical of the investment aspect for most watches, but for bags (with very rare exceptions) this really blows my mind.

[kieselguhr]

Yea, my wife has accumulated a collection of classic flaps in various sizes over the years. She sold the large one for more than double what she paid for it to a coworker and used to the proceeds to acquire yet another purse and pocket the change. I wonder if the Chanel forums have equivalent TRF member types who bag on flippers

[dannyp]

I think this mostly shows how much more variable the production and distribution costs are for handbags than watches.

[Roger Lococco]

Originally Posted by JasoninDenver

Hell, my wife has bought three Louis Vuitton bags in the last two years and watched as each one has gone up at least 30% in value on the secondary market. So, it seems like LV is like Rolex in setting up pricing at only mildly overinflated levels despite the market would actually support hyper-inflated values.

Even when they don't have the bag you're looking for, the shopping experience at LV is the complete opposite of the shopping experience at the typical Rolex AD. Rolex service is more comparable to United Airlines.

[dannyp]

Originally Posted by Roger Lococco

Even when they don't have the bag you're looking for, the shopping experience at LV is the complete opposite of the shopping experience at the typical Rolex AD. Rolex service is more comparable to United Airlines.

The difference is that LV always has something to try and sell you - a wallet, a backpack, a pair of sneakers. More akin to "everyone comes in looking for a steel Daytona so SA needs to convince them to buy a Sub, GMT, or YM instead."

[Roger Lococco]

Originally Posted by dannyp

The difference is that LV always has something to try and sell you - a wallet, a backpack, a pair of sneakers. More akin to "everyone comes in looking for a steel Daytona so SA needs to convince them to buy a Sub, GMT, or YM instead."

I've found that LV sales associates are (1) far friendlier and professional and (2) more fluent in their products than many Rolex sales associates are. Of course, so are Vacheron and AP sales associates.

[Blueteg]

Originally Posted by kieselguhr

I wonder if the Chanel forums have equivalent TRF member types who bag on flippers

I see what you did there

[BenDiem]

It’s not just Chanel, it’s also most other luxury brands, too.
This past weekend, I visited an AD to place an order/wish for a 126621 for me and a 268621 for the Mrs.
I spent $4700 for a small LV purse for the Mrs; with tax, just under $5150!
It’s supposedly a limited edition purse, the color of the clay at Australia’s WTA tennis court.
A purse I bought for my wife at LV, just two years ago, is now $1600 more. It’s everywhere.

Cheers/B

[garyk]

Originally Posted by 1sttimerolex

Just read this article and my jaw dropped a little at how Chanel raised their retail price of a bag 3x in 1 year at $1000 increase each time. For the same bag! https://fortune.com/2022/06/21/chane...inflation/amp/

And ppl are still lining up to buy them?

Wonder if Rolex pulled something like that, if it would actually backfire unlike what seems to be happening for Chanel.

The bags should tell time for the price!!!

[JasoninDenver]

Originally Posted by Roger Lococco

I've found that LV sales associates are (1) far friendlier and professional and (2) more fluent in their products than many Rolex sales associates are. Of course, so are Vacheron and AP sales associates.

Agreed 100%. We have worked with two ladies at the Wailea store and they have been stellar, even reaching out a few days later to make sure my wife was completely happy with the purchase and experience (without requesting the usual social media review, I might add).

One associate we started talking to at the Lahaina store was so nice we actually talked about things non bag related, such as the associate’s upcoming wedding, for over half an hour.

Once she found out we knew the associates at the Wailea store by name, she went to the back and pulled out a Coussin bag (which was incredibly rare at the time and being reserved for high dollar clients). She said the person who requested it decided to pass the day before and they were simply holding the bag for someone the associates would have liked to sell it to. My wife could have flipped that bag the next for nearly double what she paid. Why can’t my wife be a bag flipper dammitt!!!

[Incroyable12]

If you think that's bad look at the Hermes market.

Exact same situation as Rolex for 5 figure handbags. People bribing sales associates and flying all over the world trying to find a store with Birkin bags in stock.

[mountainjogger]

Originally Posted by bwdellorf76

The perceived inelastic demand in these goods is more a result of scarcity marketing. Historically, luxury goods were more elastic and demand changed based on economic conditions. The only true inelastic products are tobacco and prescription drugs.

How about salt (can't live without it), healthcare seems immune, and given crowded highways, gasoline as well.

[1sttimerolex]

Originally Posted by mountainjogger

How about salt (can't live without it), healthcare seems immune, and given crowded highways, gasoline as well.

Good point. I'd venture to guess most luxury items are elastic. Just some have become a safe haven for many with surplus of discretionary cash to "park" their money.

I dont think rolex or Chanel are "necessities" like salt or healthcare is

[brkn]

Originally Posted by Mystro

^^^and that sums up Rolex. A msrp of $12k or $18k for a steel Sub wouldn’t change the demand within the buying demographic.

I disagree. $18k would price out very many people.

[kieselguhr]

Originally Posted by Blueteg

I see what you did there

[Polar Bear]

Originally Posted by brkn

I disagree. $18k would price out very many people.

Tell that to the Grey Market...

[NachoNeal]

Originally Posted by VogelPhoenix

The same boutiques where SAs were stumbling over each other to help customers now have lines of eager customers every day of the week. Baffling.

I'm skeptical of the investment aspect for most watches, but for bags (with very rare exceptions) this really blows my mind.

I totally agree. I just don't get it.

[NachoNeal]

Originally Posted by garyk

The bags should tell time for the price!!!

That's funny!

[doboy007]

Don't stand between a woman and her purse.

[Dr.Stu]

Originally Posted by 1sttimerolex

Just read this article and my jaw dropped a little at how Chanel raised their retail price of a bag 3x in 1 year at $1000 increase each time. For the same bag! https://fortune.com/2022/06/21/chane...inflation/amp/

And ppl are still lining up to buy them?

Wonder if Rolex pulled something like that, if it would actually backfire unlike what seems to be happening for Chanel.

I know of two women who collect these types of purses/handbags and I can tell you, if Chanel (or Hermes or LV, etc.) tripled or even quadrupled the prices of those bags they would still line up to buy them. They wouldn't buy as many, but they'd still buy. Such is the case with Veblen goods!