CHICAGO — The "60 percent off" sign at Elan Fur isn't much different from the others filling the storefronts on Chicago's Michigan Avenue. But good luck finding a similar deal next door at Apple Inc.
Even as shops vie for customers by offering massive markdowns, shoppers are still lining up to pay top dollar for coveted goods, ranging from Apple's iPods to designer footwear.
The ever-popular Wii gaming console continues to sell out at the list price of $249, Avon cosmetics just boosted prices, Nike is releasing its newest Air Jordan with an astonishing $190 price tag, and designer water still can command as much as $3.99 a bottle.
While almost everything goes on sale eventually, some products remain untouched by discounts even in this dismal economy. Brand loyalty runs deep, and the Economics 101 law of supply and demand means the most sought-after brands can command the best prices.
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Beyond that, there are some items that consumers stubbornly just won't forgo, no matter how hard they're trying to stretch their budget.
"If you infuse enough values into the product, people will pay full price," said Candace Corlett, president of the WSL Strategic Retail consulting firm. "There are certain categories … where there are no substitutes accepted. It's infusing your brand with those things that people then say, 'I have to have the real thing.' "
Heather Fox, a 42-year-old waitress from Huntsville, Ala., scours stores for sales and clips coupons for food and clothing discounts. But she won't cut corners when it comes to her Marlboro Lights. "You'll find that most smokers won't switch from the brand they have," she said after taking a puff. And Beverly Bailey isn't buying clothes at full price. But the stay-at-home mother from Kenilworth, Ill., will still shell out top dollar for organic milk and fresh produce for her family.
In some cases, full price is a subjective designation. Wal-Mart's full price differs from those found at, say, J.C. Penney or Saks. Companies can also opt to drop prices on products instead of promoting a big sale. Luxury handbag maker Coach Inc., for example, said Wednesday that it will lower its prices 10 percent to 15 percent while offering more items under $300.
And many manufacturers now set minimum price requirements that keep merchants from marking items down to a bare minimum.