Van Cleef & Arpels

Many people believe that luxury shoppers are just paying for a brand name. However, some argue that designer jewelry costs so much because these pieces are handmade from very expensive precious metals. 

Luxury brands, specifically in the fashion industry, are absurdly expensive. Many of these big names appear to price their items at an extreme markup, despite their low cost of production. For example, Gucci sells a plain pair of branded socks for around 200 dollars. But do these socks really cost much to manufacture? Why do these products cost so much? And is the price really worth it? 

I believe that these prices are overinflated to allow for huge profit margins and extra money for those on top. For example, luxury sunglasses seem extremely overpriced. A pair of glasses that cost $95 in the store only costs about $20 to make. 

The reason these items might cost so much is that they offer higher-quality lenses, with true UV protection. Also, these glasses are made of better materials and often handcrafted in countries that pay more for skilled labor. However, the average profit margin for sunglasses ranges from 50% to 70% after all these extra production fees, which is unfair to the consumer. 

Another easily highlighted example of this profit gauging is jewelry. These items have always been pricey, but when it comes to today’s luxury brands costs seem to constantly increase. So why is this? 

Many people believe that luxury shoppers are just paying for a brand name. However, some argue that designer jewelry costs so much because these pieces are handmade from very expensive precious metals. 

The price of gemstone also depends on the grade and quality, with the utmost care being taken during gem selection. For example, the viral Van Cleef Alhambra bracelets are pieces of handcrafted fine jewelry, and most of the bracelets are made with eighteen-karat gold and expensive gems, pearls, or stones. Despite this, a bracelet shouldn’t be that expensive. According to jewelry experts the bracelets “cost £800 to make.”

To be honest, I feel like luxury brands are raising their costs too high. Brands earning so much profit from something that’s pretty cheap to make just isn’t right. Maybe these enlarged profit margins should be illegal because it’s practically scamming. 

I understand the materials are “high quality” and these products are often assembled in first-world countries with higher labor costs, but these brands don’t need to make so much more money. The people at the top of these companies wouldn’t be hurting if their prices were a bit more reasonable.