If Rich People Are Willing to Pay $155.00 for a $30.00 Shirt, Everyone Should be Willing to Take Their Money
One of the great business opportunities in
is the ability to sell over-priced goods to the wealthy, the wealthy in this case being those people who have more money than brains. In fact, the higher the price tag, the more attractive the products are to the wealthy, it’s as though they have an unspoken desire to be taken, and the more they are taken the better the wealthy feel. America
The WSJ documents what goes into the making and selling of a $155.00 polo shirt. Now all of us own polo shirts, and some of us, like The Dismal Political Economist have paid as much as $20.00 for one. So The Dismal Political Economist can speak with authority that the $20.00 polo shirt is comfortable, long lasting and makes a nice impression at the local public golf course. But $20.00 is way too small a price for the wealthy, not when they can buy what is essentially the same shirt for $155.00. (and get a $3.00 hand embroidered linen bag as a thank you for being stupid.)
The tale of a KP MacLane polo shirt offers a rare look inside the planning and global transactions behind the clothes people wear. To begin, though, there is an actual KP MacLane—Katherine, who founded the brand with her husband, Jared MacLane.
So yes, you can buy a KP MacLane polo shirt for $155.00. Here is what goes into that cost.
One good thing is that the shirts are made in the
, at a substantial cost disadvantage USA
Ultimately, the cost of materials and labor for each shirt added up to $29.57. This brought into sharp focus the cynicism of the
New York factory owner who had predicted they would take his work to . Factories in China , they found, would produce similar shirts—without the MacLanes' choice of materials—for as little as $1 or $2. China
And as for those wealthy folks who buy these shirts, well, all of us are glad to know that the government has cut their tax burden so they can afford a $155.00 polo shirt.