But by the spring of 2008, the financial world seemed to be coming undone, unemployment was rising, and among the fashionistas, cheap was the new black. [Lew] Frankfort and his executives reconsidered. They agreed it was time to create a more “youthful energy” for the brand. “This was an attitude we felt we were missing,” says Frankfort.

Higher end companies and brands are lowering prices to attract customers. Coach has announced a new line of products that cost less, so has J. Crew and Vera Wang. The items are still costly but  seemingly more affordable.

At a certain point, there is a price threshold that demands more. When you spend $200 for a television set you have a certain set of expectations, but when you spend $1000 or $2000 for a television set there are a different set of expectations. The same applies when you are buying an item that is not a necessity.

Cheap can be a pejorative term. Buying a fashion item cheap is equated in my mind with a fad or a trend. Just because something is popular now doesn’t mean that it will always be fashionable. Spending a small amount of money on something that you may use for a short time because it is cheap is generally wasteful. There are exceptions to this rule, but when it comes to spending upwards of $200 or $300 on an item, for most people this amount makes people pause.

If companies are lowering the cost of the items they are selling in order to gain more customers, is it possible that the prices were too exorbitant to begin with?  A person who might not blanch at spending $300 for a handbag may have difficulty spending $1000 for a handbag, or have greater expectations. At $300, will the style be fashionable in two years?  What if you find an item that will be fashionable, but not trendy that costs $450 is that a better investment? Maybe investment would be a difficult term to use but a well-crafted durable item that will still be in style after a few months is definitely worth the price.