Virtual Consumers Union - I don't get it!

In response to: Virtual Consumers Union

Doesn't get it.

While creators can charge whatever they like... I can choose to buy or not buy as I please too.

Luxury goods often sell because of their price - people want the exclusive brand - and it's not always better quality than its lower priced competitors, it's all about status. The shoe maker you are referring set themselves up as an exclusive brand - their whole point was not to be affordable to the masses - but to be a status symbol to the few.

Just because an object is expensive and a status symbol doesn't make it the best quality or the only product - generally a quick search or pop quiz of your friends will turn up similar products at a whole range of prices - many which are affordable.

At times, profit is lost when status is lost. If a seller who positions themselves as exclusive suddenly drops their prices so everyone can afford them - they may loose profit simply due to the fact that their product loses status as a result of the price drop.

I personally look for quality - I bought some of those shoes which you mention but some of my favourite items I've bought very cheaply. Like anyone, I make my decisions based on a range of factors - price being only one of many (eg. quality, loyalty, convenience, service, status, colour/style, etc).

If you want to compete with these brands, take a risk and set yourselves up as status brands... or else segment your market on other factors such as price or whatever... but is a union really necessary?

(Via my plurk which was inspired by a plurk from Rika Watanabe).