November 30, 2018

"Payless Opened a Fake Luxury Store, ‘Palessi,’ to See How Much People Would Pay for $20 Shoes."

Ad Week reports:
[Payless]... invited groups of influencers to the grand opening of “Palessi” and asked their opinions on the “designer” wares. Party goers, having no idea they were looking at discount staples from the mall scene, said they’d pay hundreds of dollars for the stylish shoes, praising the look, materials and workmanship. Top offer: $640, which translates to an 1,800 percent markup, and Palessi sold about $3,000 worth of product in the first few hours of the stunt.

Payless, or “Palessi,” did ring up those purchases but didn’t keep the money. Influencers got their cash back, along with free shoes. Their reactions caught in the short- and longer-form ads—those shocked “gotcha” moments—are fairly priceless....
Here's one of the amusing ads:





I find it hard to believe people fell for this. I think you can see and feel the difference between cheap and expensive shoes. And what exactly makes these people "influencers"? Is it that they lend themselves to promotions? But the ads are excellent — excellent for the Trump era, because aren't these the kind of people Trump fans enjoy laughing at?

ADDED: I'm sure this ad idea has been used many times, but I'm thinking about Folger's Crystals. Here's one example from what was a long running series:

57 comments:

Henry said...

Impression Managers 1, Influencers 0.

The Bergall said...

I swear some days people outright steal my ideas...............

eric said...

It's a clever ad but I agree with you And.

Big difference between cheap shoes and quality shoes. I buy from Payless a lot though, and rarely buy $100+ shoes. But when I have they seem much better quality than Payless.

And influencers is a tip off I think. Who are these people?

What if they too are frauds?

rehajm said...

Veblen Goods and similar effects.

AlbertAnonymous said...

Was Michelle Obama hawking them online for a huge fee? Oh, sorry, was she "influencing" people to shop at Paylessi?

Rabel said...

The influencers seem to be easily deceived, almost as easily as admissions administrators at Harvard.

I'd like to see the reaction shots of Ivy league professors grading the Organic Chem exams of T. M. Landry graduates.

Lucid-Ideas said...

What is it with Italian/Italian sounding=luxury? I have found no indication outside the law of averages that Italian goods are any more luxurious/higher quality than any other products of various places. Some are very nice and others are crap.

If you don't speak Italian and it's "Italian sounding"...run.

Phil 314 said...

Sometimes it doesn't go well

Darrell said...

Remember when people chose the Ford Granada over the Mercedes?
Yeah, those people judge shoes, too.

Brent said...

I agree that you and many people can feel the difference. But, I also think there is a large group of the population that equate price with quality. If it is expensive, it must be better. I have found many products that were expenses and were complete crap, and visa-versa. I am sure there are $1,000 shoes with the quality of Payless.

Phil 314 said...

Conspicuous consumption is a term introduced by the Norwegian-American economist and sociologist Thorstein Veblen in his book "The Theory of the Leisure Class" published in 1899. The term refers to consumers who buy expensive items to display wealth and income rather than to cover the real needs of the consumer.

Phil 314 said...

I'm regularly blown away by the cos of Coach handbags.

My daughters loves them but never buys them because THEY COST TOO DAMN MUCH!!!

gspencer said...

"I never realized how stupid I am"

PM said...

Context matters. "The Grifters" illustrates this perfectly.

n.n said...

The "emperor's new clothes" are high fashion.

A parody, a parade of perception.

mockturtle said...

My daughters loves them but never buys them because THEY COST TOO DAMN MUCH!!!

Many years ago I bought a Coach bag and had it for nearly twenty years before donating it. They never wear out but tend to be heavy. Or at least they used to.

mockturtle said...
This comment has been removed by the author.
Barry Dauphin said...

Wait until they find out how expensive the Pelosi store is.

mockturtle said...

Cheap shoes are often good enough for, say, a special occasion now and then. The workmanship of these imports is often excellent but the materials are not and won't hold up to frequent wear. [I find this true of many Chinese-made garments, as well]. That said, the shoes I wear most are some slip-on sandals I got at Walmart. As I live in southern AZ, I need warm shoes only a few months of the year.

Francisco D said...

I have an old Keurig and used to save BB&B coupons to buy fancy coffee pods. After all, I wanted to drink the good stuff.

It finally occurred to me that the different coffees tasted basically the same, especially after cream and sugar. Others may be able to tell the difference, but I cannot. I now purchase Sam's Choice pods at half the price.

I don't drink vodka much, but when I do, it's the cheap stuff from Sam's club. One of my sisters insists on really expensive Grey Goose, but it all tastes the same to me after putting in a mixer.

I am able to discriminate between good and bad mens clothes, shoes, wine, Scotch, seafood and beef. Life is too short to suffer bad stuff when you are able to discriminate.

Rick said...

And what exactly makes these people "influencers"? Is it that they lend themselves to promotions?

Influencers are people with large followings on Instagram and similar platforms who will reflect a company's product or service in their pictures for money and/or free product. So they are claiming the ability to influence their followers to try your product.

This is how the professional travelers [I quit my 100k job to travel around the world in my bikini] pay the bills.

rcocean said...

Wasn't Paris Hilton an "influencer"? I think she was paid to show up at openings, parties, etc. to create "buzz".

Anyhow, I agree about the shoes. I can tell the difference between a $50 men's dress shoe and a $20 one, even though I wear the $20.

And I certainly can tell the difference between Folgers Crystals and good coffee!

Its the same thing with Wine. Anyone can tell the difference between cheap $10 wine and $30 wine. Whether they can tell the difference between $70 wine and $30 wine is another matter.

alan markus said...

Folger's Coffee - I remember the ads with Mrs. Olson giving marital advice to the newly married brides - "Remember, it's mount-and-groan!"

Ingachuck'stoothlessARM said...

Ha! If you believe that whole charade, we have a cup of bitter, twice-burned coffee to sell you for $4.50

re: Folgers-- SNL skit where they replace a patient's IV drip w/ Folger's

're: 'influencers'-- are those what we called 'salespeople' back in the day?

glenn said...

“I think you can see and feel the difference between cheap and expensive shoes“

Some people can and some people can’t. I just like them to fit and be comfortable.

TrespassersW said...

If one ACTUALLY PAYS ATTENTION to things beyond superficial appearances, yes, one can tell the difference between cheaply made well-made merchandise. (Often, it's the small details that set them apart, but small details add up to big differences.)

So then the question becomes: Do "influencers" actually pay attention?

Sydney said...

That is freaking funny, but yes, you can tell the difference between good shoes and cheap shoes. However, many fashionable shoes are not well made - just expensive. I can see how the "influencers" would get taken.

Paul Zrimsek said...

Wise of them not to invite Mahk.

Ann Althouse said...

"Influencers are people with large followings on Instagram and similar platforms who will reflect a company's product or service in their pictures for money and/or free product. So they are claiming the ability to influence their followers to try your product."

Yes... but...

1. How large a following do these particular people have? At what point is any given huckster an "influencer"?

2. If these are already people who are in a game where they are hoping to get money for saying they like something, aren't they putting on an act for the camera and not reliable at all?

MadisonMan said...

So there is still a sucker born every minute.

mockturtle said...

Cole-Hahn loafers are excellent and will last forever. I love the soft leather. But most women don't want anything that will last forever. Not even marriage.

Unknown said...

If these are already people who are in a game where they are hoping to get money for saying they like something, aren't they putting on an act for the camera and not reliable at all?

Sort of like actors in commercials, you mean?

I switched from Folgers to Black Rifle coffee when we got a new coffee maker. I can definitely tell the difference. Also, running out of coffee is now an excuse to go to the range.

Rick said...

1. How large a following do these particular people have?

It varies widely from tens of thousands to millions. In either case but especially if you're on the low end you need your followers to react to your demonstrations. If you can do that with a smaller group it will work.

2. If these are already people who are in a game where they are hoping to get money for saying they like something, aren't they putting on an act for the camera and not reliable at all?

Of course. You're watching advertising in which the seller remains the same (to take advantage of your proven affinity) but the products change. It seems similar to radio speaking testimonials, infomercials, or the shopping channel.

Here's an article showing how they can monetize their following:

http://blog.zine.co/how-to-pitch-yourself-as-an-influencer-to-brands

I read a better article a while back but I can't find it. But this at least makes the financial motivation clear.

Anonymous said...

As a former "shoe guy' I can tell you that most shoes on the market today are junk no matter what the price. I can also express a lack of surprise that the fashion influencers were only "influenced by price. Ann, where have you been?

tim in vermont said...

Remember when the Simpsons was funny and Homer took a job as restaurant critic? He loved everything, which is why he got the job.

“You wouldn’t poo poo a meal would you?” - Editor
“Not for about 24 hours.” - Homer

HG said...

Rick- that's how they say they pay the bills.

Wince said...

Officer Bookman said to Seinfeld...

You buy a jar of Folger's Crystals, you put it in the cupboard, you forget about it. Then later on when you need it, it's there. It lasts forever. It's freeze-dried. Freeze-dried Crystals... "

Sure, we're too old to change the world, but what about that kid, sitting down, opening a book, right now, in a branch at the local library and finding drawings of pee-pees and wee-wees on the Cat in the Hat and The Five Chinese Brothers? Doesn't he deserve better?

Look. If you think this is about overdue fines and missing books, you'd better think again. This is about that kid's right to read a book without getting his mind warped! Or maybe that turns you on, Seinfeld; maybe that's how y'get your kicks. You and your good-time buddies. Well I got a flash for ya, joy-boy: Party time is over.

Phil 314 said...

Khesanh 0802 said...
As a former "shoe guy"

Sorry but I first read that as

As a former shoe fetish guy...

Martin said...

There is a big difference between cheap shoes and real quality--but most people don't have a clue. Same as with clothes and a host of other things.

That's why it's hard to find real quality stuff except at the pricey end--the great majority neither recognize nor appreciate it, so it doesn't pay the maker to spend a little more to up the quality. He'll just be undersold by someone peddling junk.

To be fair, when it comes to things like "influencers" and shoes, it may not be a matter of fabrication quality, it's more an au courant style and if you can wear them 10 times or so over a few months, that's likely all you care about as you'll want a new style at that point. And really, whereas a suit, say, you can spot the quality difference, how many people get a good, up-close look at someone else's shoes?

Paul said...

What did Thomas Tusser say about a fool and their money?

And P.T. Barnum mentioned suckers being born rather often!

And thus they are.. and they are!

Caligula said...

If it is expensive, it must be better.

And sometimes if it's expensive, it really is better. Wine really does taste better when you think it cost $100./bottle. Even if it's really $10. wine.

Although part of what's happened is that "luxury" goods has become defined as, "carries a luxury brand name." Perhaps there was a time when luxury goods were actually top quality, but it's become apparent that that's no longer true.

If you want to create some sort of "intrinsic value" metric for portable goods, one way is to use a thought experiment: imagine the goods, sans luxury-brand labels, in a bin at a thrift (charity) store. What would a buyer (who in this circumstance can only use direct sensory evaluation to examine the goods) be willing to pay for it?

Molly said...

Responding to Martin's insightful comment at 5:16.

Unlike coffee (which I might purchase every day, or every two weeks at a grocery store) I buy shoes very infrequently, so and when I buy them, I don't really have a chance to evaluate how they will fit and last over time.

Once I took a job that required quite formal dress and I deliberately sought out the high end shoes only store and paid a lot more than I had ever paid. They were well made, but never very comfortable -- and maybe I never wore them enough to get them worn in. So some years later, after I'd left that job, I wanted a pair of shoes for formal events (weddings funerals) that would be dressy enough but comfortable. I sought out a high end local chain that "specialized" in comfortable shoes. Those shoes were pretty comfortable, and I'm not sure they would have lasted long if I'd worn them frequently, but weddings/funerals how often do those come around.

I now have a job where I can wear whatever comfortable shoes I want and I wear (mostly) sandals. For years, I went with Birkenstocks which are obviously extremely comfortable, but which I'd wear out in about a year, and they are pretty expensive -- maybe 75% of what I spent at the high end places. In the last few years, I found a place (American Eagle, I think) that sells Birkenstock knock-offs at 20% of the Birkenstock price. These knock offs are just as comfortable as Birkenstocks, but they don't last as long -- but long enough I can replace them more often and still come out ahead.

The Godfather said...

Shoes, clothes, cars, etc. can be status symbols, and what they symbolize is that you've got money. If you pay $5,000 for something with a label on it that your peers recognize as costing $5,000, you have succeeded in sending the message that I can afford to pay $5,000 for this thing. Now, of course, nobody wants to be identified as a sucker, so we've got to get rid of those palessi phonies.

In other words, my days of buying shoes at Payless are now gone.

Fernandinande said...

Some influencers said

"Supremely transparent, with breathtaking dynamics and holographic imaging, Platinum Eclipse 8 provides an exciting step toward the ultimate purity of a direct connection. If only the best will do," spend $18,000 on 6.5 foot speaker cables.

cacimbo said...

"aren't they putting on an act for the camera and not reliable at all?"

Which is exactly why Palessi invited influencers. Payless knew they would spout bs in an attempt to get paid. The influencers just didn't realize the joke was on them and they had to destroy their own reputations to get paid.

glenn said...

This shoe deal shouldn’t be a big surprise. Look at the people we elect to public office.

Unknown said...

Phil 3:14 found a good one. This one is better:
http://www.ebaumsworld.com/videos/chris-farley-coffee-commercial-snl-high-quality/83156267/?jwsource=cl

Anonymous said...

@Phil 3:14 I only have a fetish for shoes made with Italian leather!

tim in vermont said...

I buy these Hawaiian surfer shoes at Nordstroms every six months, maybe a slightly different color each time, and wear them ’til they wear out. I might keep two pairs in rotation in case one pair gets so smelly that it’s a problem for a passenger in the car with me. That’s why advertisers don’t “covet” my demographic. I am kind of unpersuadable when it comes to things I have long experience with. I only wear sneakers at the gym.

Remember when people chose the Ford Granada over the Mercedes?

Fine Corinthian leather is worth it at any price.

Darkisland said...

About 20 years ago I was traveling and had a gout attack. Laying up in bed was not an option so I went to Payless and bought the largest pair of shoes they had. Payless because I figured I only needed something cheap to get me through a couple days.

I found a pair of black, real leather, laceup shoes for about $29. soft rubber soles with non-skid tread. After my gout subsided I kept wearing them because they were the most comfortable shoes I've ever owned. Ever. I wore pretty much else for 2 years then went and bought another pair.

Most comfortable shoes ever. More comfortable than running shoes.

I have worn almost nothing but ever since. Sometimes I need to wear steel toes for work. Sometimes I wear running shoes to the beach or on a boat. Otherwise these cheap-ass Payless shoes.

They seem pretty good quality to me. They would have to be to last, typically, a 1-1/2 to 2 years of daily, fairly rugged, use.

I have the pair I am wearing now and, when it looked like Payless was going out of business, I bought several more pairs. I currently have 3pr in boxes in my closet.

Only complaint is that they only come in black. I would like a brown pair for a change.

John Henry

Darkisland said...


I know nothing about Payless women's shoes. Or women's shoes in general. I do think there is a lot of bullshit associated with it. Why in Hell would a woman pay $600 for a pair of shoes that nobody can tell from the $29.95 Payless shoe?

I DO believe the story. There are all sorts of things that people like to be pretentious about but they can't tell the hundred dollar version from the $10 version. Coffee, wine, shoes, cosmetics, water, booze and more. All the same bullshit.

I have done work with companies that make several different brands, cheap, mid-price and premium, where the only difference between the three is the package design and the price. I was in a brewery once that bottled 75 different brands of beer ranging from supermarket brands to "luxury" brands. All came out of 6 vats. (Light, lager, pilsner and so on) All the light beer, for example, from cheapo to super premium was the same beer. Just different bottles and brands. Carioca rum and Bacardi rum are the same rum but Carioca sells for half the Bacardi. Both are pretty nasty.

But enough of my rant.

John Henry

Darkisland said...

It just occurred to me that I have become my father.

I never paid much attention to his shoes but they were black dressy enough for a suit.

He had apparently found some brand style that he liked and for 20 years, every time they were on sale, my mother would buy a couple pair.

Like I do with my Payless shoes.

I used to laugh at him for being stuck in the mud.

Sure wish he was around so I could apologize to him.

I also used to laugh at his gout and tell him he was a pussy for laying up with it. Then I started getting attacks in the 90's and my son would call me a pussy. Karma is a bitch.

I'd apologize for that, too.

John Henry

Aussie Pundit said...

Invite people along to help you launch a new business, and if they're good natured they will buy something and say nice things about it.
That makes them nice people. Making fun of them, and pretending that they're just gullible people is kind of mean.

Then again, all those candid camera type stunts, Borat, and so on, are invariably kind of mean.

MacMacConnell said...

Payless has it's place, 25 years ago one could purchase Ralph Lauren and Cole-Haan women's shoes there for less than half price. That was when those shoes were made in England and Maine. Payless not only imported knock offs from Asia, but also was a jobber for over stocked expensive shoes.

If you have never worn English made RL, the old Maine made Cole-Haans or any USA Aldens you have no idea what you are missing in comfort. Friday I wore a pair of English made RL black cap toes to the office, they look like new, I bought them in 1981 and have never been resoled. Still wearing my horse hide Alden dress tassels from 1978, Alden still makes the same shoe. The only shoes I've replaced over the years are my Stan Smiths and Weejuns. Shoes are an investment, buy cheap, sleep in the street.

Openidname said...

"Francisco D said...

"I don't drink vodka much, but when I do, it's the cheap stuff from Sam's Club. One of my sisters insists on really expensive Grey Goose, but it all tastes the same to me after putting in a mixer."

If you just sip them, you may be able to tell the difference. However, if you pour the Sam's Club vodka through a coffee filter three times, they become indistinguishable. I'm told this works even better with the Costco vodka.

FIDO said...

My ladies demanded that I get the Gucci tee shirts. So since I was in Elitia, Whitlandia, at the corner of Fru Fru and Pretrench Strasse, I went to a Gucci store.

After much digging, they were able to offer a MALE shirt (X Small). I lifted it up and I swear to God I could see through the fabric. A sharp cough by myself would have put hole inside of it. I have just returned from Key West and the $5 Tee Shirt shop had higher quality fabric.

It cost $400. An anecdote but illuminating.

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