Thu, Aug 16, 2007 - Page 13 News List

Magic markup

A big price tag gives items a certain cachet and exclusivity that perversely makes them even more appealing to some customers than similar, but cheaper, products

By RUTH LA FERLA  /  NY TIMES NEWS SERVICE , NEW YORK

"The economy is good," said Lee, who works for a private equity firm in Manhattan. "I've made a lot more over the past year than before, and so I have more purchasing power."

Kate Strachan appeared to be more circumspect. As a technical designer for a fashion house, she is well acquainted with the price of style. "I know a lot of quality, craftsmanship and time goes into some of these pieces," Strachan said.

Regardless, she is determined to put a cap on her spending. Combing the racks at Saks, she sighed wistfully: "I can't afford these kinds of things, so usually I buy what I need most. This year that would be a winter coat."

Then with a self-mocking smile she added, "Of course there are times when I'll splurge."

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