By ELISA GABBERT [Open Letters Monthly] – In 2007, in a rather obvious attempt to keep up with the Joneses, Chanel launched the “Les Exclusifs” collection: “a virtuoso collection of 12 rare fragrances created by CHANEL Master Perfumers,” available in select stores only and sold in large (200 ml) bottles for a premium of $200. (On a per-ounce basis this is not exorbitant, but since this is the smallest size available, it prices many people out.) This meant Chanel could continue to bank off aspirational teens with mall stuff like Coco Mademoiselle and Chance Eau Fraiche while still appealing to a moneyed elite.

So what, exactly, does paying more get you? As with wine, watches, shoes, and anything else available at both bargain and luxury price points, cost correlates with quality only to a degree. At a certain point, quality seems to level off while the cost curve can climb almost indefinitely. (A $100 champagne is not twice as enjoyable as a $50 champagne.) To an extent, paying more for your perfume may buy you better-quality, more natural-smelling ingredients (though not necessarily all-natural materials); a higher concentration of perfume, giving you better lasting power; and a more interesting or unusual scent, since high-end perfumes are more likely to be composed by talented individuals (versus teams that must answer to focus groups). You also get the signaling effect of the prestigious brand and the placebo effect of having laid out more cash.

Continued at Open Letters Monthly | More Chronicle & Notices.