I won't buy it if it's not expensive

(From left: $895 Marc Jacobs shirt, $530 Lanvin leather ballet flats, and $1,525 Proenza Schouler shift.)

Have you noticed that the more expensive a luxury good is, the more willing people are to shell out cash for it? It definitely plays into a person's inner snob, whether one wants to admit or not. Because they want to feel they belong to the cool exclusive club where few people can afford that $1525 Proenza Schouler shift. And they are willing "to pay a significant amount of money to make sure they don’t see their purchase on other people." Us human beings are truly vain creatures indeed. This article in NY Times When High Price Is the Allure has makes a good observation on this and gives some staggering numbers.

“Price certainly plays into a product’s allure,” said Robert Burke, a retail consultant in New York. “For certain people, the higher the price, the more attractive the item becomes.”

In some cases, manufacturers adjust prices upward to make sure that their goods hang in good company, displayed alongside prestigious luxury brands. “They tack on a healthy premium, because they want to maintain the exclusivity of the brand,” Mr. Pedraza said. “The customer pays for that cachet.”

A stroll through several high-end stores in Manhattan this week turned up prices that might be the equivalent of a down payment on a minivan. At Jeffrey, in the meatpacking district, a raglan-sleeve black jersey Lanvin dress was $2,455, a Shawn Collins thermal knit sweater $995. Barneys offerings included a Balenciaga leather bag with fancy grommets, $1,725; Lanvin leather ballet flats, $530; and Marc Jacobs cuffed leather ankle boots, $995.

At Bergdorf Goodman, a Stella McCartney turtleneck devoid of trim sells for $995, and her cable-stitched sweater for $1,495. A pair of Kieselstein-Cord sunglasses is tagged at $595. Far from daunting, such a ticket might be downright seductive to customers, Ms. Sokol said. “When you are looking at a handbag or even a pair of sunglasses, a high price can have inherent snob appeal.”

Consumers tell themselves, Ms. Sokol went on, “ ‘If those glasses are $150, I’m not going to be as interested as if they are $350.’ ”