We all know that luxury-goods and brands come with a higher price tag, it’s to be expected. Over the last several years luxury-retail companies have been relying on a strategy of increasing prices on luxury goods in order to drive sales. This strategy is based on an economical theory that suggests that higher prices on certain goods add to the overall allure and desirability of the product amongst consumers, rather than suppress demand as they would on ordinary products. The truth is that the strategy is being used to battle the decrease in sales volume on luxury-goods over the last few years. With prices rising on luxury items like Cartier’s Trinity bracelet. Chanel’s quilted handbags upwards of 70% over the last five years, one has to wonder if there is a limit to what even the wealthy are willing to pay for luxury items. And these increases in luxury-good pricing far outpace the inflation of similar lower-end products in the retail market.
So what it is it that draws us to high-end luxury goods? And what is it about these brands and products that so captivate us human beings? Is it merely to emphasize that the owner of a luxury-product is positioned on a higher level of our society’s hierarchy? Many agree that the primary reasons for this attraction to luxury goods is rivalry, status and psychological amongst individuals. It’s been ingrained in our psyche to strive for a higher position of status within our society. We strive to afford larger houses, drive expensive cars, and shop where people of status shop. At the same time it is also the perceived quality of the luxury good, versus the actual quality of the item that draws us in. When we look at the logo of a luxury brand our brain dismisses the functional object and instead perceives the value the brand holds in our society.
Some luxury items such as Rolex, Piaget, and Patek Philippe watches are known not only as reliable and fashionable timepieces, but also as watches that can stand the test of time.
Many luxury watches are passed down through the generations from father to son due to the overall quality in craftsmanship of the product. I myself wear my father’s Rolex Submariner, which was purchased nearly 23 years ago. It’s a luxury watch, high-end, iconic and reliable. It may be used and pre-owned but it looks and works just like new. So as luxury items rise in price the question becomes is there a difference between a pre-owned luxury-item and brand new luxury-item? In the end it’s still a luxury-item, despite its being used or not, the real difference is in the price associated with the item, and with prices rising on luxury items perhaps pre-owned luxury item is an more affordable way to treat yourself.
Or perhaps the answer all depends on where you purchase that luxury item. At Gray & Sons Jewelers in Bal Harbour, Florida, the principle focus over the last 34 years has always been on selling meticulously restored, certified pre-owned watches and one-of-a-kind estate jewelry at a great price.