Even as shops vie for customers by offering massive markdowns, shoppers are still lining up to pay top dollar for coveted goods from Apple's iPods to designer footwear.

The Wii gaming console continues to sell out at the list price of $249, Avon cosmetics just boosted prices, Nike is releasing its newest Air Jordan with an astonishing $190 price tag and designer water can still command as much as $3.99 a bottle.

While almost everything goes on sale eventually, some products remain untouched by discounts. The reasons fall mostly into three categories: old habits die hard, brand loyalty runs deep and the Economics 101 law of supply and demand means the most sought-after brands can command the best prices.

Then there are the items consumers just won't do without no matter how hard they're trying to save.

"If you infuse enough values into the product, people will pay full price," said Candace Corlett, the president of the consulting firm WSL Strategic Retail. "There are certain categories ... where there are no substitutes accepted. It's infusing your brand with those things that people then say 'I have to have the real thing.'"

But even companies with products that have traditionally held their value in tight markets are making some concessions, and the number of items that can charge a premium is dwindling as consumers make choices about how they'll spend their money.

Beverly Bailey isn't buying clothes at full price, but the stay- at-home mother from Kenilworth, Ill., will still shell out top dollar for organic milk and fresh produce for her family.

"I'm shopping a lot less and I'm looking for bargains when I shop," she said. "(But) we have not cut back on those items because we think they're related to health, and we don't want to compromise on health."

Morningstar analyst Kim Picciola said customers often justify paying full price by cutting spending in other areas.

In some cases, full price is subjective. Wal-Mart's full price differs from those found at, say, J.C. Penney or Saks. Companies can also drop prices on products instead of promoting a big sale. Luxury handbag maker Coach Inc., for example, said Wednesday it will lower its prices 10 percent to 15 percent while offering more items for less than $300.

Many manufacturers now set minimum price requirements that keep merchants from marking items down to a bare minimum.

Many retailers tend to resist markdowns because they can threaten a brand's well-cultivated image and cost companies profits both now and years down the line. That's why discounts are infrequent at stores such as Abercrombie & Fitch and Apple, which this week said its profit climbed 2 percent in the last quarter as shoppers bought a record number of iPods. That helped boost sales 6 percent and helped the chain beat Wall Street forecasts.

Experts said retailers must be careful not to set a precedent that gets shoppers accustomed to huge markdowns, making them less willing to spend on full-price merchandise.

"The whole idea of more and more markdowns is not the answer," said Burton M. Tansky, the president and CEO of The Neiman Marcus Group Inc., which offered heavily discounted designer goods during the holiday season.

The chain of upscale department stores is holding smaller, private shopping events for some of its most loyal customers, hoping to promote its full-price goods. Still, Mr. Tansky admits it likely will take a "very long time for us to untrain the behavior."

Originally published by Associated Press.

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