I have purchased some fantastic more expensive items that have lived up to their price and some that have disappointed me on a fairly grand scale to the point that I was flat-out angry.

If a television costs $2000, does it mean it’s better than the $500 version? What are you paying that extra cash for?

Here are a few reasons why some items are more expensive (and don’t need to be)

Brand Name

Now, some of us know that an Hermes bag is the real deal, they are made by hand in Paris and in some cases it can take a month or more to make one and of course years to actually get it in your hands. Their bags are made my artists and are individually inspected. They are not made in some factory in Asia by little kids or people who are unfairly paid. Then there are other brand names that are made in factories overseas somewhere, the item might cost them $1 but you’ll pay $200 for it. Is the garment made any better because it’s $200? Likely not. At times you are paying for the designer that was involved in the process of creating the garment, but it does not mean this piece will last you for years. I’ve seen sunglasses for $400 but they just look like plastic, something you get on the street and the design wasn’t that exciting either.  So before splurging on a designer item, look into it, find out where it’s made and if you really are paying for the name.

Same goes for food. Buying generic products are usually exactly the same as the more expensive brand. I’ve never been able to tell the difference between a $1 can of tomatoes and a $2 can of tomatoes. One thing to look for is the ingredients. I have purchased tomato soup once that was cheap but awful! There were more chemicals in that soup than the ones I normally buy for almost the same price. To me it is worth paying the extra 10cents for less chemicals.

Packaging

I have purchased a few products in my day that had incredible packaging, like a beautiful glass bottle for example. I remember paying $38 for a 300ml bottle of organic bubble bath. It was SLS-free and had essential oils in it. Well, you couldn’t even smell the oils and the bubbles disappeared before I could even get in the tub. So what did I pay that money for? I was all for the product being organic and sls-free, i was happy to support a small independent business but in the end it was a poor product. I probably paid for the organic aspect of it and also the small production of this product. But $38? Just because a product looks really nice in its packaging, doesn’t mean it’s any good. Do your research.

Same goes for food again. Larger companies usually have prettier and more enticing packaging than the generic stuff but seriously, should we buy food for its cute packaging? No, its contents.

Popularity (supply and demand)

To the economists out there who understand the supply and demand theory, this one is for you! Have you noticed that when products first come out and are really hyped up, everyone wants one and there doesn’t seem to be enough to go around? That’s when you’ll see the product on Ebay for double the price. It’s popular, everyone wants one and wants to jump on the bandwagon. I’ve seen this especially around the holidays with new kids’ toys. Parents feel obligated to get the “IT” toy that everyone is talking about. People go on this frenzy over a silly toy and will pay any amount just to get it. Craziness. I bought a bag in Spain, a simple cotton style bag, i loved the saying on it and paid 7 euros for it. I later found out that months before, this bag was the IT bag and people would line up in shops to get one. They were going on Ebay for a few hundred dollars and people were paying it. I waited and paid 7 euros (about $10) which was the actual cost of the bag initially.

It’s probably a good idea to wait till the hype is gone and a few months have passed and you’ll get this item for a good price, if not, a lot cheaper. Try not to follow too many trends that pass as quickly as you change your underwear.

So before you go out and spend your hard-earned cash on something, find out if it’s really worth the price tag.