Normal luxury goods sold in the market are typically products of relatively expensive production processes and materials. But if we look at the value of normal luxury goods for the people who actually live by them, it turns out that the goods are relatively affordable when compared to the value of their production. For example, clothes and luxury accessories that belong to the “normal” luxury goods category are sold at relatively affordable prices when compared to designer brands. However, even these items have high value when purchased by those who have status as well as the power to influence the buying decisions of others.
So why do we need expensive things, when we can buy something less expensive? Luxury is an act of choosing to buy something rather than buying nothing at all. In economics, there is what economists call demand creation, where the production of something stimulates the creation of demand for it. And in economics, the creation of demand is the very basis of economics, because the supply of something cannot be increased faster than the demand for it.
This is why it is relatively expensive to buy a relatively expensive item like a designer dress when the production cost of it is relatively low compared to similar items made by ordinary people who don’t have social status or wealth. The reason is because the designer dress has high value to those who own it – in other words, the person who owns the dress pays a higher price than the average person just to get her hands on it. The demand created by this process is what causes the price to be relatively high. That doesn’t mean that there is no such thing as cheap luxury goods. On the contrary, there exists some items which are very cheap and at the same time highly valuable – examples of this are vintage and second hand designer clothes and vases.
What is important to remember is that the value of things comes from their perceived value, not from their actual monetary value. People with status or wealth do not necessarily purchase things at a lower price. They do not feel the need to go to all the trouble of owning expensive items as they believe that they are worth it. A piece of fabric that costs two hundred dollars may look very good to them, but someone who lacks status and wealth may find it to be ugly and thus disposable. They would, therefore, be better off saving the money to spend on clothes that look good and are also very affordable.
Now, back to normal luxury goods. What is important here is not how much you pay for an item, but how much you think you can buy. This is not to say that you should not hunt and buy items if you have a limit, but what I am trying to say is that you should think about it a little more carefully before you make a purchase. What is the difference between a normal piece of clothing and a $200 dress? If you have a limited budget and you cannot afford to pay $200 for a dress, then you should probably settle for a normal luxury piece of clothing.
On the other hand, if you have a large budget and you feel that you can afford to splurge on the best dress in town, then that is your prerogative. Of course, there are many people out there who will be thinking the exact same thing. There is one thing to remember when you decide to indulge in such splurging. You will be placing a significant financial strain on yourself and your family. Therefore, if you are planning to indulge in normal luxury goods, make sure that you know exactly what you want and how much money you have.
This way, you will be able to prepare a clear mind and plan ahead. When you are shopping for normal luxury goods, it is always advisable to make a list of all the things you want and how much money you are willing to spend for them. If you are new to the idea of splurging, you will probably find this task intimidating. This is actually a good thing! There are many people who feel overwhelmed at first, but with patience and practice, you will soon realize that it is not a big deal and will be enjoyable for all concerned.
Once you have made a list of all the normal luxury goods you want, then you can start shopping for them. Of course, as stated earlier, you should make a list of the price range you are targeting. This way, you will be able to narrow down your search to something more manageable. After you have shopped around, you may even consider looking at some discount stores where you can get good quality products at very low prices. However, do keep in mind that you should be able to afford the items you choose, otherwise you will end up regretting your hasty decision!