The Average Joe Investor, who, by the way, discloses that he is a True Religion stockholder, says:
"Is it right to sell jeans for $200-and-up? Better yet, is it right for someone to be paying that much for a pair of jeans? I mean, it’s still cotton right? Moral concerns aside, True Religion Apparel (Nasdaq:TRLG) is doing just that. And doing it darn well."
This was the question that ran through my mind as I perused the September issue of Lucky Magazine and saw a model wearing a pair of True Religion jeans. Dear God, why would anybody want to pay $200 for a pair of jeans?
Of course, the answer in one word: Demand. True Religion is one of the "It" brands out there right now. Every fashionista deemed "cool" are wearing these jeans, so if you want to be "cool", well, you're willing to fork over the moola to pay for them. 
There's no logical thought given to the fact that if you took that same $200 and invested it at 10% over 10 years, it could yield you thousands of dollars. Oh no, we wouldn't want to trade in our "cool" status for a measly dollar!
So, back to Joe's question, Is it right to sell jeans for $200 and up? Share your thoughts!
Related Post: True Religion's WOM Advertising and News
Yes, it's right.
The reason $200 jeans sell is that customers still demand (read: not just want, but buy) them at that price.
Of course, we would all love to be able to take home that pair of Superfines (sorry, I'm not a True Religion girl ;p) for less than the $230 price tag. Still, we have to remember that "you can't always get what you want" is not only a song lyric but also a basic economic truth.
A couple months ago, there was a discussion in the larger fashion blogosphere about changes in demand for premium denim. I contributed my bit in this post - http://aestheticspluseconomics.typepad.com/aesthetics_economics/2006/05/_a_while_back_f.html - if you're interested.
Posted by: Elsa | August 7, 2006 10:44 AM | Permalink to Comment