Oh Love That! You Paid

¶ … Oh Love That! You Paid What? written by Ruth La Ferla for the New York Times on March 24, 2004 the author discusses how the price of luxury items is rising as a result of the American dollar dropping in value vs. The euro, which is the most commonly used currency in the European Union countries. That's because the manufacturers in Europe pay for materials to produce luxury goods in the euro currency, and have to raise their prices to cover their costs in American dollars, which is a weaker currency relative to the euro globally.

The currency differences tell just part of the story. Luxury goods manufacturers are forced to charge more and earn more profits due to the higher costs they have of producing luxury goods, marketing, and selling them. The fact is that luxury goods aren't a luxury unless their prices are not payable by everyone. Prices make products exclusive, and that is part of the reputation luxury manufacturers want.

It is doubtful only the dollars vs. euro differences are the only reason for the rapidly rising prices. These luxury goods manufacturers want to keep their products more exclusive and the higher the price the more exclusive they are. A dress in a local Wal-Mart is just as good of quality and just as comfortable, and maybe costs $34.00 as my friends shop there. You can find a similar dress at a very expensive boutique for over $750, and it is the same basic dress, just a different designer has their name on it. This is how manufacturers inflate their prices to make their products even more of a status symbol.

The reputation that some people crave from wearing such expensive clothes has more to do with looking rich than being rich. My friends with the most amount of money are wearing worn jeans and t-shirts, and saving their money to buy houses and cars. The poor friends spend their money on big name clothes.

Conclusion