You get what you pay for, or so the saying goes, but has the deluge of off-price retailers, online giants like Amazon and price comparison apps driven consumers’ price perceptions to a new low?
UK-based retail data firm Edited looked at the mode price point of items that have sold out this year at full price to determine what people want to pay for mass market, premium and luxury goods. The company examined the price of classic items that haven’t been inflated by spring trends, including ankle boots, skinny jeans and trench coats.
For footwear, Edited found that women in the U.S. want to spend $40-$50 for ankle boots in the mass market. The average price jumps to $225-$250 for ankle boots in the premium market and $400-$500 for ankle boots in the luxury market.
Disparities between the most frequently-shopper price points were greater for other product categories. For instance, Edited found that women do not want to pay more for luxury brand skinny jeans or yoga pants than they do for premium brands.
Instead of being “transfixed” on competitors’ prices, Edited suggests that retailers consider what consumers actually think it’s okay to spend and price accordingly.