December 23, 2010

Priceless


It's going to be available in paperback in a few days.
(Click the picture to link to Amazon.com)

I bought this book back in October..and I'm finally starting to read it. Random fact..did you know book authors really don't make much money off the paperback versions of their book? Nor do e-books earn them much of any profit. Hardcovers are where they make their share, so if you want to support that favorite author..buy their hardcover. ^^


One of my cousins is also an author. She wrote Stealing Buddha's Dinner. Have anyone of you read it? My family and relatives are mentioned in the book (but more fictious versions of themselves with fake names) lol

Where do I get my random interest for authors? I've been obssessed with an author who shares all of these "secrets" of the trade. I will share more about it him in the future.


Did you also know..as an author you can literally buy your way up to any book list?

Is the "New York's Best Seller" so and so title..really a best seller? Or did the author just buy up 50% share of all his or her books? lol Always fun to think about : )


On the same topic from my last post (things I've absorbed from reading Priceless), did you know Dial and Zest bar soap shaved off half an ounce of weight off their bars...but kept the box the same? Consumers didn't notice and life carried on as nothing ever changed. lol
(Apart from the soap company profiting more)

Quilted Northern toilet paper made their roll half an inch more narrow <-- who would notice?!
Who are the people behind these tactics? They're called price consultants.
Shrinking packaging is one of the most effective approaches to cut cost.

SKP or Simon-Kucher & Partners are one of the best (price) consulting companies in our World. These people influence our life more than we realize lol.

Their clients include some big names such as Nestle, Johnson & Johnson, BMW, and Mercedes to name a few. Isn't it crazy to think our minds are being emotionally controlled by these price consultants? It's all psychological. What is considered a bargain or a "rip-off" is actually neither, nor does it really matter.. lol it will forever be about context.


So, I'm just sitting here reflecting and thinking about what I've just read and applying it to my interests....a Chanel Jumbo price increases to..$3400. Don't we feel a little cheated? But..it wasn't like we were going to buy it when it was $2900 right? Do you think Chanel has added value to their brand by raising the price on their staple
"Classic" bags? Lets look at it from the other side..say we already own the Chanel Jumbo...WOW! Our bag is worth 30% more than the price we originally paid! Doesn't this create a more brand loyal client/customer?

How do you feel about Chanel's approach to making their handbags "priceless"?

41 comments:

  1. Ah, I'm the first to comment tonight!! Yippee.

    Priceless sounds like a really interesting book. I always love to read business books that offer everyday examples that almost everyone can relate to.

    As for brand loyalty towards Chanel...I'm not sure. If we already owned a chanel bag and it went up 30%, does that really mean you could sell your gently used bag for more? Maybe. Maybe not. I'm not sure what the market is like for the gently used bags. Does it hold its value? To me, handbags never seemed like something that would be a "collectible" (unless they only made a very selected number) like a diamond ring that might appreciate in price, but maybe I'm wrong. Please let me know.

    Are you then saying that if someone did gain that extra money, they would want to buy chanel more again next time? That is a really interesting question. For me, I don't think it would gain any points with me...but that's just me.

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  2. I prefer hardcovers than paperback. I guess I like a heavier book, if that makes sense...I like all my books to line up together, I don't know maybe I'm a little OCD...lol

    Damn I didn't know that Authors could buy there way up the best seller list. That's kind of missed up, cause I'm also looking to buy what's on the New York's Best Seller...lol I don't think this will stop me! haha

    Well now I'm looking to buy this book out, Priceless. Sounds very interesting.

    I don't really know much about Chanel, all I know is I can't afford it! haha

    ^.~

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  3. I have not heard of this book before but it is interesting to find out that authors do not make as much from paper-back compared to hard-cover books. It does make sense now since hardcover is so much more expensive when compared to paper-back.

    I think that Chanel is so classic and it is trying to keep that persona to keep their clientele. It's "priceless" idea is rather smart for them because their look is rather classic and priceless looking.

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  4. well this post was certainly filled with fun facts, especially about that Book sales thing, i had NO idea, from now on im buying hardcovers :D i usually buy hardcover anyway, just because they stay nicer, but for random things i just pick up on a whim, i don't think much about it and get paperback

    :D

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  5. That is so true about kimming things with packaging...I thin that chanel prices going up makes them seem even more in power and raise more because people still want handbags..but who doesn't really :) I also always buy hardcover because it lasts longer...ALMOST LV PURSE GIVEAWAY!!!!!!!!

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  6. LOL, I love these random facts! More please! xD

    I usually pick up hardcovers if it isn't ridiculously expensive because it stays stronger and doesn't get bent easily as I'm flipping through the pages.


    They buy their way to New York's Best Seller?? Wow, it's a good thing that I don't really pay attention to the "New York's Best Seller" I just read what I feel like xD

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  7. I feel so awesome because I always buy hard covers.
    They can take more abuse.
    xD
    My dad thinks buying famous name brand purses are pointless *dies a little inside*. So I wouldn't know anything about Chanel......

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  8. I really want to read that book now.
    Sounds very interesting and seems to have a lot of insights in the business world.

    I think high end items like Chanel and LV are always going to raise prices. I guess you can consider other factors such as limited resources and current economic state. Every business needs to meet a certain quota in order to stay alive in the business world.
    Regardless of the cost, people who have the money are going to buy high end products to make themselves look good in public.

    This is what I think..it can be so totally wrong haha

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  9. Pre-ordered this book just now. I'd like to thank you for showing some pretty good snippets of this book. I'm pretty interested in marketing strategies and pretty much the overall economics of things. [Economics major woo!]That's besides the point. What I feel about the increase of prices for luxury brands? It makes no difference to me.

    In the end of the day, they are relying heavily on their label. Keeping their prices high protects their label's reputation as a "luxury" commodity. If they were to throw sales or even lower their prices, they essentially are tarnishing that "prestige" that goes with their label. Lowering prices doesn't build consumer loyality as people might think (discounted items does not equal increase consumption, which does not equal an increase in consumer loyality). It might actually hinder the label owners from future increases of pricing. (Consumer's may feel resentful for an increase after they've experience a decrease in pricing.This has to do with more of the psychological aspects of consumers. Since they most likely will come to believe the discounted prices are the new base prices.)That's why once Lux brands increase, you will tend to see gradual increase overtime(of course, you must also factor in currency inflation and market competitiveness).

    So yes, on a business POV, I support Chanel's increase. On a consumer's POV, I don't. Then again, if I was a regular consumer of the brand it wouldn't really affect me much. If I was capable of dishing $2900 for a bag, an additional $500 would seem relatively insignificant. :)

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  10. Ah the power of marketing. I think it doesn't matter how much chanel inflates their prices every year. People will still love the brand and it will always be a classic. Did you know chanel was the first woman in the fashion industry to revolutionized women's clothing? Before she came along, women were still wearing corsets and really tight clothing. She invented a style that is looser, and more breathable for women to wear.

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  11. wow those are some really interesting tidbits! I never knew about most of it so props to the price consultants for coming up with creative ideas, even if i'm the consumer paying more for it lol.

    While it sucks for me knowing that by the time I can finally get afford a Chanel bag it will probably be $5000, I do still support them. I think its the exclusivity that drives the luxury brand sales. Take a look at Hermes. I personally don't think their bags are worth a wait list and $10,000 but people still want them just because others can't have them. I think Chanel is just protecting their interests and if you want something badly enough, all price will do is determine how long it will be before you get it :)If you look at LV, they don't increase their prices as much as Chanel and I see so many people carrying LV bags that it doesn't really register anymore. But if I see a Chanel bag, I take a few seconds to admire it since it's more rare to see one.

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  12. This book sounds very interesting. I am going to have to look into getting it! When I was in college and taking advertising classes we talked about this kind of stuff. Like for instance... when soap brands such as Dove or Zest...they say like "newer" or "new formula" and jack up the price a few cents.. but they don't change a think except the color... I just can't believe some of the marketing strategies... but I guess if it works and they make money... then they are doing their job. Happy Holidays to you and your family!

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  13. If hardcover is more expensive than paperback, well I prefer paperback. Because I want to buy for read it, not buy the cover ;)
    Wow, Channel price rising like gold price then LOL. I think rising the price so high like 30% make people think more to buy it.

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  14. to me, the reason why the price has raised is because the compagny decides to offer different varieties of goods on the market at that moment, and less ppl will tend to buy them cuz it's damn expensive. but of course, a few are willing to buy for their originality, high value,etc.

    when the price decreases, not much products (a few model choices) will be out on the market. and ppl tend to buy them. so there's a big possibility that you will see it everywhere you go.

    I don't know if you agree with me. (i have no knowledge on the marketing/economics, but i'm pretty interested in these topics.)


    I didn't know that from buying hardcovers, we actually supported the authors. All i thought was that having hardcovers protects the book from dangerous things/human like me who drops the book by accident. *my backpack is the most dangerous one. everything i put in it breaks. even my poor monokuro pigs mirror....:(*

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  15. chanel kind of annoys me with the price increases i feel like if ever i do save enough for it the price will go up and it will always be a cat and mouse game. that is unless i do become wealthy in the future. but then again chanel is intended for people who have some wealth anyways not girls like me who need to scrimp and save every penny to afford one. at the end of the day I still want the coveted bag though. sigh :-/

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  16. all i know is that i want a chanel jumbo. LOL

    i love knowing more facts! and the questions, i honestly don't even know how to answer. it's like wow haha.

    thanks for telling us about the book! i've been trying to look for a new book, i'd be sure to read this :)

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  17. Thanks for sharing us those random facts, hehehe. I always learn something, and then I share it with my hubby and he doesn't believe me. ha ha! He must think I'm a weirdo or something.

    Wow, everyone knows so much about name brand hand bags. I'm not on that level yet so I can't really say much. But I do know that if there's a really good brand out there, of course the prices will raise. I don't know how well Chanel is compare to other name brands out there but if there are people out there who loves Chanel I'm sure whether the prices is raise or not someone is willing to buy it.

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  18. It's always fun to see how you all respond to the blog topic :)

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  19. This is mindblowing... its so wierd that money really does make the world go round. Essentially, you could have a terrible book, but just buy it yourself and it would be said to be very popular. Right? Am I understanding this?.... (You guys were in a book? * JEALOUSY* lol)

    And I feel kind of cheated that these brands are constantly lowering what you get for your buck. To me, if you skimp out on quantity and such, your brand begins to lose quality in my eyes.

    And the hanel bags could go either way. Loyalty to their current customers by bringing up value? yes. But what about those people who just got enough to invest in the bag, only to find that the bag is now $500ish dollars more? hmmmm. You should make like a random fact blog for stuff like this, because I would love to see more, its very interesting.

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  20. With ordering my books for school this quarter, I am going to order the Priceless book! haha
    It sounds so interesting and seriously my kind of book haha

    Why is it that paperbacks don't bring very much money to the author?? Or E-books?? Is it because the hard backs are typically much more expensive so there is more profit?? Just a guess-haha

    I also just looked up Stealing Buddha's Dinner-- very interesting! I just may order that one too-- It was cool to read the description and it talk about Michigan as the home town for your cousin, same as yours! Imagine that haha
    Also, she has your last name :) Definitely family!! haha I feel like by knowing you through blogging I know an author of a book because she is your cousin haha

    I always think of a New York Times best seller list as a joke. Granted, I know some really great books get on the list. However, all celebrities that write books seem to also end up on the list and I am almost sure that they don't really belong there! Is it because they are celebrities, or because they are rich and buy their spot, or both!? haha

    That is also crazy about Chanel! One day I hope to own one, but it sucks to know that they raised their prices that much! I almost feel ripped off, ya know?? haha

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  21. I never knew that book authors earn a little more on their hard cover books compared to their paperback books until my cousin told me awhile back. I always knew that hardcover books cost more but never thought the extra profit would go to its authors.

    Chanel has always been considered a luxury brand along side with Louis Vuitton, but with their big increase in price this year, they have become very exclusive! This is why there are only a few department stores (such as Neiman, Saks and a very few Bloomingdale's and Nordstroms) carry its items in their stores. Do you know the 20% Friends and Family coupon from Bloomingdales used to apply to Chanel sunglasses, but they no longer do? Chanel and LV are excluded themselves from department stores' big events. Department store like Baney's New York entitles its credit card owners 10% off the whole store on their very first day of purchase that are charged on their Barney's cards either online or in store, and because Chanel does not allow this sort of discount, it excludes itself from being carried by Barney's. Whoever else carries Chanel and LV will have to follow their own guidelines & store policy. Everyone knows Nordstrom has the best return policy, but they're not when it comes to its Chanel boutique.

    How do i feel about Chanel increasing their price by 30%? I don't like it one bit! That's only because it'll take me longer to save up for its handbag. I, however, will feel very special having a Chanel handbag on my arm or shoulder :).

    Can you believe Christmas is less than 24 hours away??? Kinda sad because i don't want the holidays to be over!

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  22. Reading about marketing and business is so interesting - since I plan on having a career in a similar field myself, I use every chance I get to absorb all the information I can get my hands on! That particular book seems quite interesting as well - it's going to my list of books I need to read (which is growing in an alarming speed, don't know if I'm a slow reader or I just have a lot of work, haha).

    About the soap bars.. I do think it's just ripping people off, but the consumers need to watch what they're buying as well. Just imagine how much money you can save by making informed and well thought out decisions when buying something!

    When it comes to high end brands, I think it's part of their strategy of keeping their brand 'exclusive' - they have a quite fixed target group. Since Chanel's iconic products never go on sale, it kind of makes sense that their prices either stay the same or increase (of course the increase depends on other factors as well - the gas prices etc) - even though I think 500 dollars is a bit steep for an increase.. But perhaps they think that their target audience won't have much of a problem with it, since their products are expensive to begin with.
    People who buy Chanel on a regular basis know that they're going to get impeccable quality for the price (and of course the prestige, think of all of the connotations behind the brand name!), and people who cannot afford it, won't buy it anyway, with or without the price change.

    Just my two cents anyway. Thank you for this interesting post and happy holidays!


    Maria

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  23. Well what's the point of writing a book then 'buying' your way up a book list if you're gonna have to spend the money you've earned? I can see that it inflates the authors image and credibility for future books but there's not much profit in the foreseen future for them.

    This is another example of how powerful and influential marketing / media is. I remember Dateline reporting on the secret ways companies scrimp to boost their profits. Interesting stuff but, in the long run, we consumers forget about it and end up going about our daily lives.

    Not only has Chanel boosted the value of their label but also the egos of the Chanel bag owners since the bags scream 'I have money and status'. Now there's an even greater gap between those who can easily afford it, those who already has it and those who are longingly looking in the window drooling. Those who can afford or already owns a Chanel think it's fine for the price hike while those who want / need / must have one think it's unfair and borderline prejudice. What it boils down to is that it's Chanel's call and image. More power to them since they can do whatever they want.

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  24. I think I should buy a Chanel bag now before the price does increase! Same with Louis Vuitton. When I bought my first LV, I thought I was nuts paying around $500...that was in the 90's! Now the same bag is around $900!

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  25. I had not heard of that book, but I assure you I write it down in the list of books to read. I am a passionate reader, I love to spend relaxing moments reading books for hours. I am currently reading "The Physician " by Noah Gordon. If you have not read I recommend it, it is magnificent. I started this book and I intend to read my entire bibliography of the author.

    I hope a nice holiday with your family. Merry Christmas!

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  26. I think Chanel is just trying to make their bags exclusive. Their price increases just make it harder for people to buy. It becomes a dream for girls to own one day. Well... definitely is one of my dreams. LOL. I wonder when they're going to stop increasing the value.

    Gonna check out that book!!! I needed some book recommendations. Thanks!! <3

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  27. Hardcovers are always the more costly ones, but definitely worth it to support your favourite books and authors. Plus, they don't get damaged as easily. haha

    Wow Steph..which book are you getting these cool facts from? Priceless, right? : ) I'd love to read it myself and learn more. o_O I've always been interested in business and the like. Ever since high school! I was in DECA since grade 10 ^_^

    Regarding Chanel bags - I'm sure every lady wants one...and I know that most of us either can't afford it or don't want to spend so much on it.. Chanel is smart, in a way..but I don't think doing this will help them GAIN their clientele. It's always gonna be the same type of people purchasing their bags (most of the time). Lowering their prices certainly won't help them build their brand though...so I guess it could really go both ways. The market tends to fluctuate a lot and I think their pricing has a lot to do with that too. From a buisness point of view, I support the reasonable increases (with the market). From a consumer's point of view, I definitely don't support the increase. haha Chanel is just making their brand more and more exclusive. Women who own their products will get to feel special knowing that they are part of a certain group. : )

    xx The Little Dust Princess

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  28. Wow I had no idea they were called price consultants. I need to pick up a copy of that book! Thanks for sharing!!

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  29. you always fill us with great knowledge!! hehe i had no idea that authors do not make money off of paperbacks.. hehe.. defintely getting more hardcovers ! ^_^

    your family is so cool.. !! you have dentists and authors !! hehe.. go asian power ! lol

    since chanel went up, i would've been like "argh.. should've bought it when it was 2900" lol... prices increase all the time and it never occurs to me why.. in my mind, it's "since the economy is bad, ppl are raising prices" but you put some good insight as to why..

    I love reading your blog for this very reason.. Of course love your makeup posts too.. but I enjoy reading your longer posts, they always make me think =)

    Merry Christmas Steph!

    xo Siwing

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  30. Wow that is so interesting the only thing I ever noticed was the bags of the chips got smaller which obviously have less chips in then and still cost the same if not more way to ripp us off in a way. About Chanel the price increase just makes it even harder for me to be able to aford one but if that means that you can resell at a higher price than what you bought it for its good in a way.

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  31. I ordered Priceless amazon. Have you heard of Freakanomics? It's along similar lines. Check out a few pages on amazon.

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  32. Merry Christmas, Steph!!!!!!

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  33. Interesting post! hahaha.. but isn't giving a customer less than what they paid for stealing?? =(

    I was drooling over a Chanel bag the other day... It was a furry one in black, in classic flap. So beautiful, but costs over $6000, here in Australia.. Most cosmetics here cost twice as much as in US... booo... transportation costs are so high..

    Anyway, Merry Christmas!!! =)

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  34. Only a few more minutes til Xmas! So merry Christmas!! Hope it snows (lol as if right?)

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  35. Karl Lagerfeld said something along the lines of "I design for the wealthy, not for the occasional shopper who owns only a handful of Chanel items". at the time, I believe he was referring to the women of Hong Kong who buy practically every item from every collection just because they can. thats where Chanel's true income comes from. they're loyal enough for the rest of us i guess.

    Even at $2,900, the demand for Jumbos and the m/l's were just too great. many people said they were getting too popular and too mainstream. i noticed on the Purse Forum that the truly wealthy stay away from Louis Vuitton because its too "common" for them and there are just way too many people carrying them unless its one of those super exclusive runway bags straight from fashion shows.

    its crazy to think the Jumbo used to only be 2 grand. i literally lol'd as i wrote "only" as if 2 grand for a purse is common! actually I want to say it was even way less than that when they were first introduced.. but you would think Chanel would WANT to bring in more revenue instead of raising prices and filtering people out. if anything, such a high markup is only creating a bigger demand for their cheaper priced competition. but no, in the end, they want to be in the ranks of Hermes, which is pretty much the most respected handbag line. so to me, they're not trying to add value but respect. sort of stupid if you ask me! if thats really what they were aiming for, then they need to step up to the plate. Hermes is known for their top-notch handmade quality while Jumbos are mass-produced! they have respect because they earned it.

    and i don't really think it creates brand loyalty. if anything, it hurt their brand loyalty! tons of faithful customers were pretty pissed off and agreed that 30% was just too drastic. if i were a faithful chanel shopper, I would actually feel ripped off because the quality of the bag hasn't improved (actually has been getting worse) yet I'm paying hundreds of dollars more.

    what happened was that tons of faithful Jumbo employees actually decided they would finally jump the gun and invest in a Birkin or a Kelly. the workmanship, quality of the materials, and the "desire" for the bags are greater anyways so the extra $1,500 wasn't stopping them from finally going to Hermes.

    I love Chanel and its my absolute favorite brand but even I have to admit that their bags now are not worth the $3500 (another price increase coming up!). I've held a Birkin before and its just perfect. every stitch is amazing! there have been so many times when the leather stitching of the purse straps have been uneven for Chanels. its just ridiculous. not just that but sometimes the diamond quilting is off and uneven.

    but then again, i still want one. =)

    and a lot of people actually have sold their jumbos for a massive profit even if they were a few years old. meaning they could have gotten it for less than 2 grand and sold it for over 3. there have been a few jumbos that were priced around 1400 and even a maxi for 1500 but either the seller didn't know about the price increases or they deemed the bags to show too much wear to be worth more. regardless, they were sold within the day so...!

    whateves. i'm glad just to have A purse. lugging around my beat up Coach purse is good enough for me.. for now! lol

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  36. holy shiat i just discovered your koi pond. i was wondering wtheck you were talking about when you mentioned it on your twitter lol. why are they so cute!!! *clicks like a mad woman*

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  37. i totally have ADD right now (sorry) but i've been meaning to ask you about YSL Faux Cils. i tried it after seeing your ridiculous va va va voom lash pictures but the mascara was just so fragrant for me! every time i turned my head, i got a major whiff of the mascara. so i was wondering, do you not smell that? or was it just my bottle? the Sephora SA's said YSL puts in fragrance in a lot of their products but it was just so intense for me?!

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  38. Hmm, Chanel. So classic and so sly to raise their prices on their most loved handbags! I'm not sure how I would feel. Probably cheated somehow even if I bought it for $2,900... because now the newbies would be paying MUCH more for the brand unless they somehow change the way they make their bags, with different material and things. Other than that, I would think it's just to profit from the consumers. What do you think? :) I'm curious to know! hehe

    I read a lot of books too! I especially love to buy hardcover books because they last longer and look better on my bookshelf. Something about hardcover books seem priceless to me as a nice Chanel bag :D

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  39. @Anita I've read Freakonomics in high school, it's an easy fun read :)

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  40. haha ohh man. being able to buy your way up the best seller's list.. EXPLAINS. SO. FREAKING. MUCH.

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Thank you for your comments!