Banana Republic was Founded on Power of Price and Value. Williams-Sonoma Knows about it too.

Banana Republic, Williams-Sonoma, and Wine know the Power of Price and Value

There was a married couple, Mel and Patricia Ziegler and they both worked for a newspaper.

CBC: "...it was 1978. The disco era was in full swing, and it wasn't a great time for fashion. It was a Saturday Night Fever polyester world. 

So the Zieglers went to a surplus store in town, and spent most of their savings on a shipment of paratrooper shirts that cost $1.75 each. 

They sewed elbow patches on them, changed the buttons, and figured the shirts could sell for a profit at a local flea market. 

They charged $6.75 - and sold four. 

So the next weekend, Patricia decided to wear one of the shirts. She belted it, rolled up the sleeves, and put a sign on the table that said, "Short Armed Paratrooper Shirts." 

Then the Ziegler's did one more thing. 

They doubled the price. 

And immediately sold out. 

[Zieglers] learned the power of presentation, but more importantly, the concept of perceived value based on price.

But that new price point made people suddenly value the shirts more than they did the day before.

With that success, the Ziegler's decided to open a small store.

CBC: Onefrugalstore.com Zieglers store

 XOAnkur Gupta