Surprised at the Price? Check the Packaging.
Thursday, January 08, 2009 Posted by Christina
Have you ever wondered why some things seem to cost much more than they're worth?
Sometimes the packaging is a good indicator of why the price is higher.
My husband got a couple of nice St. John's Bay dress shirts for Christmas from my mom. The price tag says the suggested retail price is $50.00. Now I know that my mom did not pay that for the shirts... after all, she gave birth to the Northern Cheapskate and taught me everything I know about how to find a clothing deal. I'm guessing (based on the sales I've seen), she probably spent about $15 a shirt.
If the shirt can sell for $15, why is its suggested retail price $50?
Well, let's see... it had three cardboard tags that were attatched to the buttons of the shirt with thread. It had four pieces of cardboard in the collar. There were three fancy metal clips holding the shirt in a nice, neat, folded presentation. There were two stickers listing the size of the shirt. The shirt also came with a tiny plastic bag that contained a button.
So, lots of packaging and a neat presentation can affect the price. I've seen this with other items, too: the most obvious being pre-made gift baskets. Those have a huge mark-up!
That's why it's so important to pay attention to what you're getting for your money. Are you buying a name, a marketing campaign, or a whole lot of packaging you're just going to toss later?
In the end, it's really a $15 shirt. It will hold up for an average amount of time, we'll lose the extra button long before we need it, and we'll be happy no one paid full price for it.
Sometimes the packaging is a good indicator of why the price is higher.
My husband got a couple of nice St. John's Bay dress shirts for Christmas from my mom. The price tag says the suggested retail price is $50.00. Now I know that my mom did not pay that for the shirts... after all, she gave birth to the Northern Cheapskate and taught me everything I know about how to find a clothing deal. I'm guessing (based on the sales I've seen), she probably spent about $15 a shirt.
If the shirt can sell for $15, why is its suggested retail price $50?
Well, let's see... it had three cardboard tags that were attatched to the buttons of the shirt with thread. It had four pieces of cardboard in the collar. There were three fancy metal clips holding the shirt in a nice, neat, folded presentation. There were two stickers listing the size of the shirt. The shirt also came with a tiny plastic bag that contained a button.
So, lots of packaging and a neat presentation can affect the price. I've seen this with other items, too: the most obvious being pre-made gift baskets. Those have a huge mark-up!
That's why it's so important to pay attention to what you're getting for your money. Are you buying a name, a marketing campaign, or a whole lot of packaging you're just going to toss later?
In the end, it's really a $15 shirt. It will hold up for an average amount of time, we'll lose the extra button long before we need it, and we'll be happy no one paid full price for it.
January 8, 2009 1:30 PM
Excellent point! I've always compiled my own gift baskets (except when shopping post-holiday sales when they're pennies on the dollar) for the very reason that companies seem to think a little plastic wrap and ribbons can upgrade the price by $10-20!
Shirts like the one you mentioned are why I love places like Sierra Trading Post, where we got my husband some fabulous-quality moisture-wicking shirts -- some silk -- for under $20 each.
Sadly, the other big part of price is name. You can get nearly identical shirts and one can be more than twice the other, if the company has name cache.
January 9, 2009 8:01 AM
A way packaging can work in your favor? Check for items in "last year's" package. They may be cheaper than items in the current packaging. For Christmas my son got two of the same riding toy. At first we thought they were different but turns out they were exactly the same: one was in the 2008 style box, and one was in the 2007 style box and purchased on clearance.
January 9, 2009 10:02 AM
What's sad about this, is that unfortunately that packaging is most likely to end in the garbage. So really people pay extra for waste. Not good for anyone's wallet or the environment.