12Society (Blake Griffin and Kevin Love are Co-Founders)

This already exists and works pretty well I think.

 

$125 retail value means nothing when those items are luxury items.

 

It means nothing period. What is market value? They can choose any random dollar value as retail value but what will people actually buy it at? Look at those As Seen on TV items... retail value of $500 but you can get it for $10... but wait, there's more... act now and you can get two of them.

 

I'm biting it, this is exciting.

 

I get what you're saying and I don't disagree but there really is such a concept in the area of marking that says luxury goods are priced at an unnecessarily justified premium compared to every other good like water or gas. Luxury goods are the type of goods that mark up the most from the costs of production. The value of the qualities luxury goods are bought for like craftsmanship is subjective. Anyway, just wanted to share something I learned way back in uni.

 

Yup. It's all perspective. Read a really interesting article the other day about the psychology of sales.
Given the option to buy an item cheap or buy a more expensive item, most people are unsure which to choose. For example, the same company owns Old Navy (cheaper option) and Gap (more expensive option). They want more people to buy Gap, so what do they do? They create a third option - Banana Republic. This is the most expensive option. But what that does is draw the Old Navy people up to the Gap level. They found out that people don't like extremes. They want something in the middle, something safe. Same concept of the top of the line car in the dealership. They have a really expensive car at $100k, so more people will buy the $65k car. They don't sell many at $100k but they sell more of the $65k car simply by having a $100k car.

 

$50 gloves, $30 socks, $20 tie clip, $30 bow tie. all for only $39 a month! Awesome....