Making A Project Ok To Great?

[DavidL]

I have a few ideas of the thought process on creating a great product rather than an average project.

What are your thoughts on what makes a great high end product that sells for 1 thousand dollar bag vs an average 100 dollar bag.

[electrathon]

Attention to detail, all detail. If anyone tells you nobody will notice but you, they are wrong. Everyone will notice, just most will not tell you they noticed.

[DavidL]

My idea on luxury goods is that in a 3000 dollar bag a majority of the price is to pay for the costs of running the business, and the legacy/lifestyle of the company. The rest is spent on time.. the time it takes to learn the skills, to source the materials, time to make the product and to research and test the product.

Does any one have a take on design, material, ect or what luxury/high end brands not even in leatherwork create that allure that regular brands don't have? Is it the fact that ferrari, apple iPhone, hermes breaks the mold of the norm to create a product thats a "dream product".

[25b]

My thoughts are that I know I'm not perfect because I'm human. But I want my work to be as close to perfect as possible so I am unrelenting on myself in that quest. I never settle for "good enough" in anything I do. If it's worth doing, it is worth being the best at it as possible.

One quote I've read before that I identify with is "Amateurs practice until they get it right. Professionals practice until they can't get it wrong."

[billybopp]

The difference between a $100 bag and a $500 bag is mostly about design, workmanship and materials. The difference between a $500 bag and a $3000 bag is almost entirely about marketing.

Bill

[Tramps Leatherworking]

I agree with Bill, marketing and name recognition is the key... Steve Jobs' real genius was in marketing --- convincing people they needed a new phone every year was Genius, and it made him very wealthy.

[BAD HIDE]

My idea on luxury goods is that in a 3000 dollar bag a majority of the price is to pay for the costs of running the business, and the legacy/lifestyle of the company. The rest is spent on time.. the time it takes to learn the skills, to source the materials, time to make the product and to research and test the product.

Does any one have a take on design, material, ect or what luxury/high end brands not even in leatherwork create that allure that regular brands don't have? Is it the fact that ferrari, apple iPhone, hermes breaks the mold of the norm to create a product thats a "dream product".

First off, any retail price you see has been doubled twice - once for the wholesale markup, once for retail - so your $3000 bag cost $750 at most to make. That includes materials, labor, and about 30% for office, design, shipping, and other miscellaneous overhead. That's pretty standard business practice, and why companies make a profit even when it seems they're giving stuff away with crazy sales. Note, if you're not doing this with your own goods, you're underselling your work.

Second, they're selling their stuff for so much because they can. Marketing, advertising, etc, all paid for with that massive markup, gets "you want this, you need this" in the right customer's heads. It still sells, despite it's over inflated price.

Third, Billy's absolutely right. There is a huge difference between a $100 bag and $500 bag. There isn't a whole lot of difference after that. Maybe some specialty or exotic leathers, special hardware, and maybe just another step up in refinement - none of which actually matters that much in durability and longevity. Often high end leather looks better, but is structurally inferior and less durable than well made handcrafted items in real world tests.

[DavidL]

to be honest I don't believe the price is over inflated. When you only count the tangible then yes, but the intangible things are the main selling points. For instance dollar for dollar a toyota would be great bang for the buck, where a ferrari is more luxury. If I had the money I would easily buy a ferrari.

Dollar for dollar a premium product would be better than a luxury one.

Brands like LV, Hermes sell a majority of their product from their stores, and certified wholesalers(I don't frequent these stores, so they quite possibly don't sell at other stores). There isn't a mark up when it comes to luxury goods seeing as they are vertically integrated - they own or control every aspect of the supply chain, being the wholesaler, manufacturer, marketer, retailer, designer and controlling the shipments and which stores they go to.

They would find a price to sell it for and sell it business to customer through their retail stores (getting 100 percent of the retail price) and possibly sell wholesale(getting 60-80 percent retail) in large shipments to the high class stores. The retail price would be the same from a wholesaler as it would from their own retail, just that the wholesaler gets a discount in order to turn profit.

The difference between a premium brand vs a luxury from what I learned is that premium brands don't control manufacturing and often neglect the craftsmanship Ex. diesel, fossil, oakley.

[BAD HIDE]

It's funny how you said all that only to agree with me.

Vertical integration doesn't cut into profit or markup, it only means the manufacturer keeps more of it. They can turn around and use a higher percentage to make their product better, but mostly it goes into more marketing and the direct to customer retail front. It costs money to sell it themselves. If they're selling to retailers as well as selling it themselves, then the wholesale discount is a mark up. Retailers would be pretty pissed if the company gave everyone the discounted price. They turn a profit at every step of the chain, the difference is how much of a profit per bag sold is either wholesale or direct.

Doesn't matter if you're premium, luxury, corner store, or wallyworld, COA<Wholesale<Retail price.