A Lesson in Branding - How to sell a $1 product for $300!

[100k]

I came across this post, and while most people on FB are yapping on about how outrages it is that Louis Vuitton is selling a plastic tote bag for $300 that doesn't cost more than $1-5 to produce on a mass scale; I instead saw it as valuable lesson in having a powerful brand.

https://www.facebook.com/photo.php?...5995125558.571780.575475557&type=1&permPage=1

http://www.ebay.com/itm/XX-Large-Pl...ries-Shopping-Tote-Storage-Bags-/291116060171

What they are normally used for by people:

 

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[BlakeIC]

take a look at aventus creed cologne

or

The entire perfume industry as a whole, the margins are absolutely insane

cost $5 to make sell for $300

edit: Whoever sees this post and decides they suddenly want to hop into this industry, just know your 2 major pain points when being in this industry is

1) Getting into retail, this will be a very hard thing to do with a product of perfume

2) It is a scented product and people want to know if they like the smell before they purchase it (your other way could be samples)

 

[NuclearPuma]

take a look at aventus creed cologne

or

The entire perfume industry as a whole, the margins are absolutely insane

cost $5 to make sell for $300

edit: Whoever sees this post and decides they suddenly want to hop into this industry, just know your 2 major pain points when being in this industry is

1) Getting into retail, this will be a very hard thing to do with a product of perfume

2) It is a scented product and people want to know if they like the smell before they purchase it (your other way could be samples)

I have thought about fragrances myself. Probably can be done like anything else if you put your mind to it.

 

[Jake]

For my new brand of products I thought I was going to launch a particular product well before my competition decided to.(They hit the super rich crowd, I'm aiming for the somewhat high to the well off crowd). I have an order in but it will be a bit until I have the products in hand.

The same day I post a pic of my sample to build a bit of hype they release the product for sale. I was a bit annoyed they hit the market before me at first but their products are $1k-4500 above what I was planning on selling for. Incredible.

So it looks like they're doing me a favour and I can bump my prices by a lot more than I expected.

 

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[CommonCents]

http://www.cnbc.com/2015/03/26/want-your-own-personalized-perfume-youll-need-30000.html
Want your own personalized perfume? You'll need $30,000
Kilian Hennessy, a perfumer who makes personalized fragrances, gave"Secret Lives of the Super Rich" a tour of his NYC By Kilian store where he works his magic. He won't name his clients, but said they include a Saudi princess and rich Europeans.

remember to not just look at product margins to produce, but in the high end brand biz, there is a ton of marketing. they are building and selling the brand which costs $$$ Not sure how well this guy does, but he is sure at uber high end, selling mostly vanity and exclusivity. Which is total BS I deal with fragrance houses such as Robertet and get in 55 gal drums. I've caught fragrance houses sending the same fragrances back to us just with different names. Nobody knows if they have an exclusive personal fragrance or not. But it sounds good!