The range of luxury goods in the marketplace grows daily. It doesn’t matter if you are on the lookout for a new handbag, shiny watch, or some fine jewelry, the options are immense. However, spending big bucks doesn’t always guarantee that you will end up with excellent craftsmanship, a nice fit, or even more durability.
With the number of sellers tripled in two decades, it is not uncommon to see a discrepancy between an item’s real and perceived value. Knowing products and understanding how retail markup works will help you end up with a great deal, at least according to this report by a national luxury online jeweler.
So, you might be wondering why the hefty price tag. One part goes towards the rising labor costs. Many retailers are challenged on how and where they produce their merchandise, so the luxury brands pay greater attention to that part of their brand. However, the biggest part of the price tag, which very smartly is used by the sellers, is the desirability and perception customers have towards the items being sold. When there is a big buzz for a product, brands can charge much, much more.
Of course, in that big markup for luxury goods there are times you get what you pay for. Handbags are usually hand-stitched, watches are handmade up to the finest details, and jewelry is unique and characteristic for that brand. But when a consumer is buying into a certain brand, make sure the product you are purchasing is worth it, know the quality, and understand how the price is being formed.
The value behind a negotiation
Many points are useful when negotiating for your next piece, but here are three which will always be important:
What is the retail value?
As just discussed, before you kickstart with your purchases, know what you are planning to shop for, so you can see if there are multiple stores that might be selling your intended product. When you know how brands are pricing that product, or even how they are advertising it, you will immediately get a better picture of the price range. Also, you will learn if this intended product of yours is a hot piece, or if it’s something that takes a long period to be sold. In case you are checking online, swing by in the buyers’ review section of the website you are shopping. No sales pitch and no picture will give you a better view of the experience someone else had before you. You might do a complete research and analysis if the product is not up to its standards, everything else will be in vain.
Know their competition
Another point you will indirectly check while searching for the real retail value will be the competition. It is normal to have preferred brands, but with so many options to choose from, not always you will need to be loyal to them. Luxury Goods brands will always push one another, and whenever they have similar products, that friendly competition by default is present. But this information will also be useful during the negotiation. With bigger price tags, sellers will do everything possible to make a sale. And that is your moment when you can bring their price down. Although they will bring the price down, as their markups are high, there will be still plenty of room left for negotiation, or bonuses on their side.
Every product has its time and place
Every product, no matter the brand, would usually have a high-selling and low-selling season. And being a smart shopper, waiting for that low-selling season will give you another ace in your sleeve. You see, stores must have some traffic in their stores so they can cover all general expenses, employees’ salaries, etc. Plus, let’s not forget the commission many of these places have. When there is no traffic, there are fewer sales, and there is a smaller commission.
So, you can be sure the salesman will give his best to do that sale. The more they are desperate for a sale, the better for you. Of course, don’t be overly pushy, because after all there are certain lines over which even the most desperate seller will not be able to cross. Start your negotiation confident, be aware of the points over which you are ready to discuss, and if you don’t like where the discussion is going, you can always walk away.