But why are all these designer items so expensive? The simplest answer here is that we want them to be like that. Luxury is something not everybody can afford. It is something you want to indulge in, something that is frivolous and pleasant in its frivolity. It’s not a necessity, not a must-have. It can be pointless, impractical, and weird but, above it all, it is always joyful.

That is why designer bags or shoes are considered to be status symbols. They are there for people to buy so they can show everybody that they can afford these frivolous things. That in itself makes people feel good.

The fashion houses, of course, profit from that kind of attitude. They are happy that instead of charging what is fair compared to their costs, they can charge whatever the customer is willing to pay. Which means they can often go over the standard mark up and can triple or even quadruple the price if they want.

However, one should not underestimate the price of creating a fashion piece. After all, it is art and it requires quite a lot of effort. 

Albert Elbaz, a brilliant designer who has worked for Lanvin, Yves Saint Laurent, and many more fashion houses, once described how elaborate his process of creating a garment is. “I took all the bones out, and I stitch, and to get there, you know, it took me forever. It took me six or seven dresses to make one. And it's time and it's money and we are not doing it in offshore countries - we pay 65% taxes in France! It is so much work.”

“Doing a collection for me is almost like creating a vaccine,” he continued, “Once you create the one vaccine, then you can duplicate for nine dollars and ninety-nine cents. But see if you can create it for nine dollars and ninety-nine cents, and the answer is no.”

The exclusivity of luxury goods also makes them expensive. You see, because of their exclusivity, they are made in small batches. Ironically, instead of lowering the production costs because one doesn’t use as many materials, this drives it up. In turn, the prices are higher as well.

Ideally, a high price means high quality. This certainly was true a decade or so back, when brands were producing luxury goods locally and employed local craftspeople to do the work. This meant that, yes, you might spend your whole paycheck (or a few of them) on a bag, but at least it will serve you for years to come. You also knew that the materials used to make your accessory were top-notch and everyone involved was paid fair wages. However, nowadays, that is not necessarily the case.

Just like any other business, the fashion business is all about making the most money by spending the least possible amount. This often means cutting costs in the production by using cheaper labor or cheaper materials. 

This is evident when you check the ethical production score of some of the luxury brands. For example, Versace has not taken any action to minimize microplastic impact or protect biodiversity in its supply chain. Chanel is also not doing anything about the hazardous chemicals used in clothes manufacturing. On top of that, both of them together with Dior and Louis Vuitton have never provided any evidence on paying living wages for everyone in the supply chain. And this is coming from brands that could afford all that.

So, the next time you wish to splurge on something that’s fancy and of high quality, don’t just go for the most well-known brand assuming you’ll get a fair deal. Do a little bit of research and spend your hard-earned money on something that will truly serve you for years. And will not rip you off by charging $400 dollars for a dog poop bag.