We have all seen it when looking at some huge online retailers (Saks, Neimans, etc); a limit placed on the amount of bags we can buy. Have you ever thought why there is a limit? An article in yesterdays New York Times gets down to the bottom of why there is a limit on these goods, and much of it has to do with the weak dollar. We all know the dollar is weak, we see it when we travel, we hear it on the news, it affects us. But for all of the handbag aficionados it is affecting us more than we know. In February, luxury brand Hermes will have a much larger than usual price increase (rumored to be around 12% which is absolutely insane) because of the weak dollar. While it is just part of the iceberg, the US dollar being so weak does effect what happens to the designer market. This is a very interesting read below:
Article via NYT and writer Eric Wilson
FOR products that are truly in demand, like Wii game consoles, tickets to the Super Bowl or cans of corn Niblets on double-coupon day, it may seem reasonable to limit the number a customer can buy at one time.
But readers of the fine print on the Web sites of luxury retailers like Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman may be surprised to discover that such a policy also now applies to designer handbags, like Prada’s latest ruched nylon styles, which cost $1,290; Bottega Veneta’s signature woven leather hobos, at $1,490; and the new rectangular Yves Saint Laurent clutch that looks like a postcard addressed to the designer (with a $1,395 stamp).
“Due to popular demand,” potential shoppers are warned, “a customer may order no more than three units of these items every 30 days.”
Popular, the bags may be. But how many of the customers who can afford them really want more than one, or for that matter, three?
