LOL Apple Watch Strap Sells For $49, Estimates Indicate Cost only $2

[engine]

I know, I know, it's about perceived value, but, even so, $49 seems a bit steep to me! I wouldn't pay that kind of money for a watch strap. The fact I don't wear a watch anyway has no bearing on that point of view.

Nearly 20 percent of Apple Watch buyers are not only shelling out hundreds of dollars for the timepiece but are springing for a spare band too, giving the tech giant a profitable second dip into customers' wallets, according to data provided exclusively to Reuters.

The data from Slice Intelligence, a research firm that mines e-mail receipts, offers a rare window into the money-making potential of Apple's first brand-new product under CEO Tim Cook. LOL Apple Watch Strap Sells For $49, Estimates Indicate Cost only $2 [reuters.com]

[Leosghost]

So ..the Apple "markup" percentage on that particular item is 2450.00%..
I ( and very many others * ) sell some items that have similar ( or even greater ) markup percentages over the materials and manufacturing costs..
That is what being in the "Luxury" and or "Fashion" niche is all about..:)
I suspect that many of my customers are also Apple's customers..


* To give just 3 examples , these percentage markups are "average" in luxury womens shoes, luxury lingerie ( and even "non luxury" lingerie has very good markups ), luxury and some non luxury womens swimwear..

There are many many more examples that I could give of "niches" / "items" that have many many customers willing to pay one markups of 2500% and over..

Apple have merely found ( or designed /engineered / marketed ) "the motherlode" of such customers..
Fortunately, for the rest of us, there are plenty of such customers to go around..:)

[engine]

I agree, there are many items that are marked up hugely. In most instances, I would not be spending that kind of money for a "brand." Oh, and before anyone suggests, I would not buy a pirate copy of a brand. Fashion items are probably the most common item marked up hugely. If it's genuinely better, yes, by all means, pay more. But, it's a watch strap! How much is better worth? Clearly, $49!

Some years ago i bought a small piece of sculpture. Taking the cost of the raw material into account, it'd be worth relatively little, but what I was paying for was the artists' work, which was likely to be many hours of dedication, and creativity. It was a thing of beauty. It was a one-off, but it was worth it.

Perceived value, and people's perceptions of that seem out of alignment.

[topr8]

Leosghost on the ball as ever ... i agree ... and i think that many, many customers would be shocked if they knew the markups they pay ... most specially on luxury goods.

[Leosghost]

If it is Ok to suggest a search string ? ( If not, feel free to edit ) ..Hermes watch band price ..
Total materials cost ( inc the buckle ) less than $2.00 yes even for the leather ones..except the "croc" ones which may get to $5.00 ( croc being more expensive )..and Hermes discard any parts of a skin that have even the slightest blemish if it would affect the pattern piece that they are cutting..
Even so , those discards can be purchased and used, blemish free , as long as one is not trying to cut exactly the same shape at the same size..

The retail price markup of an Hermes watch strap is way over Apple watch strap markups..

They don't take that long to stitch ( not enough to warrant the mark up being due to highly skilled labour ), even by hand, even to Hermes standard, which are the luxury industry gold standard..

<aside>

Some years ago i bought a small piece of sculpture. Taking the cost of the raw material into account, it'd be worth relatively little, but what I was paying for was the artists' work, which was likely to be many hours of dedication, and creativity. It was a thing of beauty. It was a one-off, but it was worth it.

As someone is who is also an artist / sculptor..and If I may presume on this occession to speak for my "colleagues"..
Thank you, for the purchase, and for your reasons :))

</aside>

BTW..really want to have your "jaw drop moment"..look up.. birkin bag hermes price..be sitting down when you click the wikipedia result..which is accurate..

The percentage markup on that item, ( over 15,000 % ..yes ..over fifteen thousand percent markup.. if one is counting materials cost and even highly skilled Hermes labour ) makes Apple , and almost any other "brand" that you can think of look like mere beginners at adjusting perceptions of "value"..

[engine]

Brands, or art are different things, but is a "brand" worth the inflated price? That's got to be subjective in one respect, but there is inherent value in a better quality product. If you were to take off the brand does the item drop in value? Of course it does. That's because the perception is that it's not as good.
I did see some forgeries of a famous brand in a street market (originals would never be sold there) and just looking at them, you can see it's made cheaply, and it's not anything like the quality of the true brand. But, again, is the brand worth all that additional cost? It's worth more because it's better, but not the massive mark-ups sometimes seem.

Glad to "invest in the beauty of the art," Leosghost. As it happens, I no longer own that sculpture as it was out of place in our house. We reinvested the money in another item that was more fitting. Many artists are talented, but never achieve a value worthy of the work and materials alone. Perhaps that's the topic of another discussion.