#31: There’s Always a Mark-Up
Luxury and designer goods are a huge market. Some people spend thousands upon thousands of dollars on fancy handbags and designer duds to impress their family and friends. But are those items really worth that much? Not really, at least according to this insider. Someone revealed that many luxury leather goods are made in the same factories as other, more affordable brands.
The main difference is the fact that one bag gets a designer label slapped on, and the other heads out to a T.J. Maxx somewhere. While the craftsmanship of most luxury goods is undeniable, most items cost less than $200 to make. The $1,000+ price tag is the markup so that brands can make a profit.