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Millennial Branding founder Dan Schawbel on Tiffany’s lawsuit against Costco.
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First our top story tonight worth thousands thousands of Costco customers ripped off.
That's what Tiffany is saying the high end jeweler says -- -- was selling expensive diamond rings.
Falsely claiming they were from Tiffany.
As a result Tiffany says cost -- customers were duped for years -- now taking the warehouse giant court.
The cheapest one carat diamond engagement ring at Tiffany's starts at 111000 dollars at Costco it's about half that joining me now brand expert Dan shop -- He's been closely following the case and what it means for consumers -- welcome to yield nice to have you on the show.
You know I'm thinking you're branding expert would you ever have advised cost go to label a product and -- worrying an engagement ring no less.
As Tiffany.
Definitely not it hurts everyone it hurts costs -- guys.
There's -- long term brand they were going for church short term profit and it's gonna hurt in the long term -- hurts customers because customers.
Got a got ripped operating get what they paid.
Four and -- cartel hit any enterprise I wanna show folks what we're talking about is -- have pictures in the case.
Showing what these what this product would look like.
And the typically the blue box okay you can see it to -- on the right here.
It's a one carat diamond retailing for almost 6400 dollars not even close to the Tiffany's price.
They think Tiffany's but it sure doesn't look like Tiffany's labeling do you think that costs.
That was vulnerable -- here.
Cost does very vulnerable because if there were as they get there ripping campaign stop may be directing other brands off and you know if you rip these brands up customers -- know over the long term but it's going to be too late to return it to the customers -- as well are heard as well by that's.
Did you say it's a huge mistake by them for it to get short term profits.
And that's gonna hurt their brand long term because who Coogan trust -- anymore.
Well -- they they have gotten in trouble for this bad before with Calvin Klein that particular brand name.
Within you think to -- I gotta tell you so this is been going on for years so clearly nobody who works at Tiffany's has actually gotten into a -- goes store.
Now if you -- on the website and this is their defense we monitored the website that's one of the things we look at.
They don't label those same -- since Tiffany but you go to one of their 600 currently at six -- 600 warehouse stores.
You would have found Tiffany product only a few days ago.
Does it surprise you it's taken Tiffany so long to figure this out.
Well as it was a customer that found -- which is it's kind of the sad part but Tiffany's will they wouldn't -- investigate something like that because costs goes a reputable brand.
But in -- in a world where it's all about consumer consumer power.
You know consumers -- they find that out they're gonna report because they don't wanna get ripped off and they don't want their peers to get ripped -- either because.
You know okay it can it can really sabotage the long term.
You know I know a lot of people out there tonight wondering how could be sure what I behind how to -- no I mean.
I can recognize that that Tiffany label does not look like the label that I see when I go to the store on Fifth Avenue here in New York City but.
You know not everybody lives in New York City.
You gotta buy right directly from Tiffany's he can't.
You can't trust as much anymore and honestly who buys who buys Tiffany's.
At a cost go anyways you go there to -- that it out well parts purchases for your kitchen.
The well that's not entirely true they do have high in labels that a lot -- -- and they have bright flame.
They have a number of them.
That I would -- to see that they sold so.
It's even more confusing of -- -- I think for consumers because if you've got.
-- -- if you would if you've got.
Some of these high in French jewelry retailers.
Then why wouldn't have Tiffany and it's really hard to tell.
Yeah I think that -- really intelligent consumers can't how they've done the homework more information you can find from the -- compare prices compare.
You know left.
At the end of the day it's it's because.
The consumers gonna figure it out and then you get negative publicity for costs go and over time.
They're -- for Costco brands that can really do harm to that company did you have let me see it -- make these people -- should they reimburse them to some level.
I think that costs -- should reimburse them and Tiffany's should by the consumer that.
-- cops go a pair of earrings or something because then they'll get positive publicity for doing that in turn the tables on -- out.
It can't happen stranger things have happened Dan thanks for coming on the show tonight really appreciate -- so much.
