Who pays retail ???

[Henry Boogers]

This topic is along the same lines as a discussion that was brought up a few weeks ago about finding brand name goods at outlets.  

Its simple really- you have to let go of the notion that a $3500 suit is the same cost for everyone.  To someone who has 3 million dollars in the bank, that $3500 suit is the equivalent to a college kids A&F tee shirt.  Proportionally, in terms of their means, they both represent a certain percentage of their net worth.  If someone has $500 in their bank account, and they spend $300 on a suit, one can argue that its a much worse deal and more of a strain on his checkbook than a man who buys a $15,000 vicuna overcoat when he has 1 million in the bank.

I think for some of the younger guys on the forum who may not have the money as someone older, this is a hard concept to really understand.

Though what you say is true, it does not take into account the fact that the real value of a dollar does not change.  Thus its relativity exists only in the mind of the consumer.

In other words, as I acquire greater wealth my threshold for (spending) pain has not increased proportionately.  I think it's still the notion of dropping 3 G's on an article of clothing that some people still struggle with.

HPB

 

[oldskool]

Thnaks for posting this one. I agree, retail prices are not real in most cases. For example, I am wearing this year's RL Cordovan 'Mccallum Chukka' boots retail $595 ($279 bluefly), This year's RL Grey Flannel Dalton Trouser retail $295 (~$100 polo.com), TSE cashmere sweater retail $425 ($119 TSE outlet), Hickey Freeman Dress Shirt $125 ($39 Bluefly) the list goes on.

All my suits were purchased either at Paul Stuart or Polo.com at at least 50% off. I don't even spend a lot of time shopping, I just buy clothes this time of year or over the summer.

True, some things cant be found on sale. Certain jeans, glasses, certain accessories.. depends on your priorities.

Example, do you wants a Mercedes S500 at a dealer volume discount, or do you need a rare indivudual sedan that sells only at a premium. If your clothes tend to be individual and euro-collection, your chances of findeng them on sale is a lot less.

I never pay retail, simply because is pains me to see the same thing cheaper in a month.

 

[mark34]

I wind up paying retail for my suits and dress shirts because they all have to be made to measure. I'm not complaining but it would be nice once in a while to be able to find something that fits on sale.

 

[Mark Seitelman]

I have observed the following from hanging-out at various high-end stores and from my own spending:

1. Some luxury stores always have a few ultra-luxury items around, such as a $7,000 RTW suit or even a $10,000 one. First, it has a few (and I mean very few) customers who will buy it. These customers include Arab businessmen or others who blow into town and just buy, buy, buy. These stores also carry such high-end items so that they can get some local or national press, and they are expected to carry such ultra-luxury products. Part of the Neiman's and Bergdorf's public relations is that they carry such luxe items.

2. The real customer base of the luxury shops are upper middle class people (bussinessmen, doctors, lawyers, etc.) who would never buy some of the impulse items that you mention, such as the Gucci ski cap.

3. These customers might pay $3,000 for a cashmere sportscoat if it were quality, however, $3,000 is pushing the envelope. None would pay $10,000 for a RTW suit.

4. As I indicated at 2, most of the customers are upper middle people, and they spend their money prudently. They will spend the money where they have to in order to buy quality. For example, I have no problem in spending $2,200 to $2,800 for a MTM Oxxford suit, but I wouldn't spend that on RTW. Also, I would rather spend that money than $4,000 for a bespoke London suit since I have found that the Oxxford product is almost as good and is in some ways better. Furthermore, I sometimes buy bespoke shirts from Turnbull in its exclusive designs, but I use a less expensive maker for my "standards". I have a "discounter" make some of my pants as well as sportscoats. I also have an "in" at a factory which I take advantage of from time to time. Therefore, the siginificant expenditure of money makes one plan one's purchases in a prudent manner. Also, one may buy a $2,000 suit but pair it with a $100 shirt.

 

[discostu004]

i wonder the same thing but then i hear stories like the following i've either heard from a salesman or seen directly:

1. i went into a store that carries Kiton/Lattanzi etc and there was a stack of Kiton jackets, all loud plaids like i like and i went over to the sales guy to inquire who was so lucky and he said they were MTM bought by a lady for her husband who has slight alzheimer's and she thinks that all the color keeps him sharp mentally. he told me that the jackets and a few suits there were 80K, and while she was waiting he was showing her how certain colored shirts and ties would go and she said "i'll take those too", total: $11,000

2. a pro athlete used to shop at the same place i did and i would hear that he'd go in and spend 70-100K and they'd basically have to beg him to come pick it up. he didn't want it delivered but during the season he didn't want to mess with it, so they'd sit on their racks for 6 months or a year

3. one time i heard about a guy who went in and spent 125K on a bunch of barbera. they said he was a big regular and would always walk thru saying "this and this and this" and just randomly pick out things, then have them fitted. once his 125K was fitted they called and he said he'd come in later. a month passed and they called again and even offered to bring it and he finally fessed up: he'd gained 20 pounds and didn't htink it would fit. they insisted he come in and see if they could alter it again, otherwise, he said, donate to somebody.

those are the people who spend mad $$$ and don't mind

 

[globetrotter]

I don't know if retail is the right term for how I shop, but I have yet to buy any clothes that I wear as an adult used or on ebay (I grew up wearing thrift shop stuff, but that is another issue). the first good pair of shoes I bought I bought on sale, and frankly they didn't fit me exactly right, but they were 70% off. I won't do that again, ever. I could see, possibly, wearing cufflinks or braces from ebay, aside from that I am not there yet. And I have no intention of spending time going through a pile of clothes in a "basement". I don't have a lot of money, not at all, just I have less of a need of more clothes than I do of time. I would prefer to have a small number of clothes that are exactly what I want, and not to have to spend more than a few hours a year shopping, than have a huge wardrobe of unusual stuff that I got during hundreds of hours of searching.

 

[Tom]

My brother is a trader for Bear Sterns in Boston. He pays full retail at Louis of Boston, and The Andover Shoppe. He spends several months a year in Paris and has a couple of places there that are the equivalent of the above mentioned. He likes to be taken care of, and he doesn't mind paying for it.

-Tom

 

[Mark Seitelman]

A couple of stories from a trusted salesman who used to work at Bergdorf's.

"Big" customer (i.e., both big spender and hefty) comes in from Chicago and orders several pairs of Kiton pants, custom, at about $10,000 each. He rejects one or two.

Another rich guy buys about 7 Kiton suits, custom, approx. $15,000 each. When they arrive, the wife doesn't like the color of one or two, and she rejects those out of hand.

In each case both Bergdorf and Kiton ate the losses.

 

[AlanC]

And those rejected Kiton trousers and suits became discounted items for some lucky soul.

 

[imageWIS]

A couple of stories from a trusted salesman who used to work at Bergdorf's. "Big" customer (i.e., both big spender and hefty) comes in from Chicago and orders several pairs of Kiton pants, custom, at about $10,000 each. He rejects one or two. Another rich guy buys about 7 Kiton suits, custom, approx. $15,000 each. When they arrive, the wife doesn't like the color of one or two, and she rejects those out of hand. In each case both Bergdorf and Kiton ate the losses.

Damnit. What did I tell you people about taking your spouses along when clothes shopping? Will men never learn?

Jon.

 

[Brian SD]

Somewhat OT, but my roommate who works at borders told me that some guy came in with his daughter and spent $2500 on CDs from Borders. CDs alone, and nothing else. Apparently, his daughter and he had good taste in music (they bought Devendra Banhart, Xiu Xiu, other cool stuff). When my roommate asked why he was buying so many CDs, he said, "We don't get out of the house often." He paid with the AmEx black, and my roommate got down his name. Apparently, he's the CEO of Petco, which makes sense because we just had Petco Park built here in SD.

The point is that people out there don't have a problem dropping a couple g's when they have a couple million being dropped on them.

 

[imageWIS]

Somewhat OT, but my roommate who works at borders told me that some guy came in with his daughter and spent $2500 on CDs from Borders. CDs alone, and nothing else. Apparently, his daughter and he had good taste in music (they bought Devendra Banhart, Xiu Xiu, other cool stuff). When my roommate asked why he was buying so many CDs, he said, "We don't get out of the house often." He paid with the AmEx black, and my roommate got down his name. Apparently, he's the CEO of Petco, which makes sense because we just had Petco Park built here in SD.

The point is that people out there don't have a problem dropping a couple g's when they have a couple million being dropped on them.

Like a Centurion card means much. My dad got one originally to make large purchases for his company, and kept it after he semi-retired.

A) Yes the annual fee is $2500, but you can get that reduced to $0 if you have enough money parked with AmEx elsewhere.

B) It is only worth it if you travel a lot and use the free first class upgrades offered with the card on British Airways / the free hotel upgrades / spend a lot at Saks and use the AmEx points at Saks (although you can also use the Platinum AmEx and save a bundle if you pay the annual fee).

Jon.

 

[Brian SD]

My point was that he casually spent $2,500 on CDs, not that he has the AmEx Centurion.

 

[imageWIS]

And my point was that if they seldom travel, i.e. leave the house why do you need a black AmEx?

Jon.