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Wednesday, February 20, 2008

Designer Handbag Supply and Demand Shortage



by Bridget Wright

My blogger friend and marketer extraordinaire, Susan Gunelius over at Brandcurve, wrote this insightful post on manufacturer’s manipulating supply and demand on designer handbags. While the news story does invite speculation of the REAL reason why manufacturers limit the number of handbag purchases, I of course have my own speculation. Being a designer handbag connoisseur of sorts, I have to wonder why if these wonderfully and tastefully made handbags by top-notch designers is so great, why not let everyone have a piece of the action?Handbag manufacturers (and businesses in general) have one goal: that is to make money, period.

Companies that care will provide you with great customer support and generous customer communications, but their bottom line is to ensure that the bottom line is black and stays black. If the manufacturers simply allow other individuals (resellers) to buy unlimited amounts of their product and resell them at lower costs, the value of the item is driven down and the desirability is watered down, making the “gotta-have-one” feeling go away for the money-in-hand consumer.If I were a handbag manufacturer, I would do the same thing. Having your product hard to get or priced very high makes it very much worth everyone wanting to have one and scrambling to get the last one.


For designer handbags, it’s an absolute genius idea in making that particular product highly desirable.I love most all top designer label handbags and desire to have one of each…one day. But until then, I will look, learn and wait for sales to happen or for my favorite consignment shop to get one for me. Therefore, I don’t suppose I really care whether the demand is real or manufactured, so long as I can get my hands on one. If it is a manufactured or hyped-up desire for one, what is your feeling about the supply and demand in getting one?

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