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 skinny jeans, yoga pants and trench coats.
For denim, Edited found that women in the U.S. want to spend $70-$80 for skinny jeans in the mass market. The average price jumps to $175-$200 for skinny jeans in the premium market, however the price range remains the same for skinny jeans in the luxury market.
Likewise, Edited found that women do not want to spend more on luxury yoga pants, capping off at $75-$100 for yoga pants in both the premium and luxury categories.
Instead of being “transfixed” on competitors’ prices, Edited suggests that retailers should consider what consumers actually think it’s okay to spend and price accordingly.