It's All About Marketing

Seen today in the Polo Outlet: Regular old sweatpants, but with the Ralph Lauren tag. A deal at $29.99 (the outlet price, not sure what regular price was).

Here's my guess is how this came to be (with apologies to Cousin Diane):

Somewhere deep in marketing headquarters at Ralph Lauren:

Bob: Hey Frank, I bet you $10 I can get people to buy sweatpants at Polo stores

Frank: C'mon, you're kidding me. Plain old sweats? Nahh, not possible.

Bob: Sure it is, you just have to think like a consumer. We'll charge enough that people will think they are special.

Frank: Bob, you had one too many martinis at lunch. Not going to happen. I mean, maybe if we dressed up the sweats a bit and made them more fashionable. Then, maybe you could sell 'em.

Bob: Frank, you're thinking too small again. We've got the brand. We can do anything we want.

Frank: 10 bucks?

Bob: Yep.

Frank: Charging over $40 for a pair of pants identical to the $4 version at Wal-Mart?

Bob: Yes Sir.

Frank: You're on!

....

6 months later, Frank gives Bob $10.

--Ben