Why is Restoration Hardware so Expensive?

Why is Restoration Hardware so Expensive

Restoration Hardware, now known as RH, is a home furnishings company that operates in the US and Canada. RH targets upscale customers through its retail stores and online channels. The company’s history can be traced back to 1979. According to several stories, the store’s founder was looking for quality yet affordable hardware for a house. To his dismay, he could not find any such shop. Realizing a business opportunity, he set up his store. Today, the store employs almost 3,000 people, a testament to its success and growth. One criticism against the store is that it is too expensive. Well, let us discuss why is restoration hardware so expensive.

1. Renowned Designers and Artists

One thing that sets RH apart from the competition is that outside designers and artists design nearly all its products. RH focuses its resources on finding such people who taste this type of work and engages them for its products. For instance, even though it is a US company, it hires designers from London. This practice helps attract customers who do not care about the price tag as long as the product is visually appealing.

2. Quality

If a company is targeting upscale customers, it will never compromise on quality. The same applies to RH. Granted that the products are pricey, but it is outright impossible to find a quality problem in them. Indeed, the company realizes that the cost of quality conformance is much lower than non-conformance. After all, if an inferior quality product reaches the customers, RH’s reputation will take a hit. In a cutthroat competition industry, reputation is what matters most.

3. Products

Some of RH’s bestselling products take considerable time and effort to manufacture. When a company invests so many resources, it is bound to recoup the costs. Apart from this, many of the products are handmade, meaning that only a handful of people can make such products. In other words, RH pays a considerable amount of money to its workers for these products. In turn, RH charges a hefty price from the customers. If it does not, it will not be able to survive financially.

4. Target Market

Another reason that RH is expensive is because of the target market. RH only targets upscale customers for whom price is not a significant concern. Such types of customers want the best quality products that complement their lifestyle choices and financial status.

Wrap Up

If you have any questions regarding RH or its prices, let us know in the comments section below. If you feel that the products are beyond affordable, we recommend that you wait for the discounts and other offers. RH offers considerable discounts, which may allow you to buy your favorite products without breaking the bank. Thank You.

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