How to Join
the Fashion Spot / Front Row / Careers, Education & the Business of Fashion
FAQ Calendar Search Today's Posts Mark Forums Read Rules Links Mobile How to Join
Reply
 
Thread Tools Display Modes
11-05-2005
  16
no photos, no photos
 
purechris's Avatar
 
Join Date: Jan 2004
Gender: homme
Posts: 2,887
travis--I don't make any money when I sell things at 75% off....by that time you just want it gone and hopefully you've sold enough at full price or at a moderate discount to break even.

  Reply With Quote
 
11-05-2005
  17
V.I.P.
 
AlexN's Avatar
 
Join Date: Aug 2004
Location: Kansas City, Missouri
Gender: homme
Posts: 8,772
Interesting discussion, especially about those Prada robots.

  Reply With Quote
11-05-2005
  18
fashion insider
 
Arturo21's Avatar
 
Join Date: Nov 2004
Gender: homme
Posts: 2,146
Yes, and thankyou Lena..you've been so informative!

__________________
* "But it's not about t*ts and a$$, leave something to the f*****g imagination!" - Pastry of TFS ranting
  Reply With Quote
12-05-2005
  19
etre soi-meme
 
Lena's Avatar
 
Join Date: Jun 2002
Location: europe
Gender: femme
Posts: 23,965
you are welcome, my pleasure arturo

  Reply With Quote
12-05-2005
  20
backstage pass
 
jhaime's Avatar
 
Join Date: Mar 2005
Location: London.
Gender: homme
Posts: 954
This is how it works in our stores...

250% mark up from the price we buy the line in at...

For example...a pair of Evisu jeans...costing £235...

we'll buy them in for around £15-£20 a pair, depending on what size of order we have and what kind of relationship we have with their agency reps or credit management companies and so forth...it varies from shop to shop...or what part of the world the store is located in relation to the country it's manufactured in.

Regarding the production cost...those 1 pair of Evisu jeans retailing at around £235...you're talking about £2-£3....which is like what...$5-$6

They obviously have all their overhead costs to take care of...

If i stick those jeans on sale at 50% off, we're still making a sizeable profit.

It's the same for the rest of the clothing industry, just a less dramatic % increase.

  Reply With Quote
12-05-2005
  21
backstage pass
 
jhaime's Avatar
 
Join Date: Mar 2005
Location: London.
Gender: homme
Posts: 954
You also get their agency reps taking a slice of the pie...

so therefore their production costs have to be at a minimum.

There are other methods, for example buying on credit, and paying a slice of the profit back on each single sale..and what you don't sell, you send back.

Then you get newly established labels offering their lines for sale...and taking a commission out of sales on their gear..that's just purely for them to get out there and gain as much exposure as possible, with the boutique taking on no extra risk...

  Reply With Quote
12-05-2005
  22
trendsetter
 
Johnny's Avatar
 
Join Date: Mar 2004
Posts: 1,408
Quote:
Originally Posted by jhaime
This is how it works in our stores...

250% mark up from the price we buy the line in at...

For example...a pair of Evisu jeans...costing £235...

we'll buy them in for around £15-£20 a pair, depending on what size of order we have and what kind of relationship we have with their agency reps or credit management companies and so forth...it varies from shop to shop...or what part of the world the store is located in relation to the country it's manufactured in.

Regarding the production cost...those 1 pair of Evisu jeans retailing at around £235...you're talking about £2-£3....which is like what...$5-$6

They obviously have all their overhead costs to take care of...

If i stick those jeans on sale at 50% off, we're still making a sizeable profit.

It's the same for the rest of the clothing industry, just a less dramatic % increase.
That's absolutely shocking!!! £15 to £235? Is that the norm? I can't believe that.

  Reply With Quote
12-05-2005
  23
spoilt victorian child
 
droogist's Avatar
 
Join Date: Jan 2005
Gender: femme
Posts: 1,975
^ That cannot be normal. jhaime, how many jeans do you have to buy in order to get that price...?

  Reply With Quote
12-05-2005
  24
V.I.P.
 
faust's Avatar
 
Join Date: Jan 2004
Location: New York City
Posts: 10,312
Quote:
Originally Posted by jhaime
This is how it works in our stores...

250% mark up from the price we buy the line in at...

For example...a pair of Evisu jeans...costing £235...

we'll buy them in for around £15-£20 a pair, depending on what size of order we have and what kind of relationship we have with their agency reps or credit management companies and so forth...it varies from shop to shop...or what part of the world the store is located in relation to the country it's manufactured in.

Regarding the production cost...those 1 pair of Evisu jeans retailing at around £235...you're talking about £2-£3....which is like what...$5-$6

They obviously have all their overhead costs to take care of...

If i stick those jeans on sale at 50% off, we're still making a sizeable profit.

It's the same for the rest of the clothing industry, just a less dramatic % increase.
I don't believe it.

  Reply With Quote
12-05-2005
  25
no photos, no photos
 
purechris's Avatar
 
Join Date: Jan 2004
Gender: homme
Posts: 2,887
ummmm....where are you getting Evisu at 15-20 a piece. That's unheard of unless you're going through an off price source. Hell, I even got Yanuk jns from an off price source to drive my margins and they were still $30 per pair and the real wholesale price is between $60-89.

  Reply With Quote
12-05-2005
  26
backstage pass
 
jhaime's Avatar
 
Join Date: Mar 2005
Location: London.
Gender: homme
Posts: 954
Firstly, you do realise that £20 is like...$45-$50...

Secondly, If you're paying that amount for Yanuk then you're literally being taken to the cleaners somewhere along the line.

We stock the whole Evisu range, so therefore we have a contract based form of ordering, it isn't like some retailers who are always waiting around for some extra pairs...

and yea, the production cost of Evisu isn't far off the production price of most 'designer' jeans. It's the other areas, like design, management and agents who contribute to the higher prices.

I mean, Red Dot is made in the same factory as Evisu, yet their prices are 1/5 that of Evisu's.

Maybe now you'll start believing. It's all just one big rip off, yet we love it.

Chris, what? the normal wholesale price is $60-$89 ???

They go down to like $110 in sales...

If you're paying that for them I wouldn't bother stocking them and I know what I'd be telling their agents...:|

  Reply With Quote
12-05-2005
  27
front row
 
Assembler's Avatar
 
Join Date: Feb 2005
Location: Toronto, Canada
Gender: femme
Posts: 427
This thread is fascinating! I knew that larger more expensive brands were often made in the same factories as lower brand items, so that's really no surprise. But nice to see confirmation of that.

  Reply With Quote
12-05-2005
  28
spoilt victorian child
 
droogist's Avatar
 
Join Date: Jan 2005
Gender: femme
Posts: 1,975
Uh...I still don't get it? You said you do a 250% markup...so if you're retailing the jeans for £235 that means you should be buying them at £94 a pair. If you buy them for £20, that means you're selling them at 1200% markup. So is the £15-£20 price you quoted your estimate of the production cost per jean, minus the overhead costs (management, distribution, etc)? Because normally those costs are simply factored into the wholesale price of the merchandise...


Last edited by droogist; 12-05-2005 at 03:27 PM.
  Reply With Quote
12-05-2005
  29
windowshopping
 
Join Date: Mar 2005
Location: Germany
Gender: homme
Posts: 6
Quote:
Originally Posted by jhaime
Firstly, you do realise that £20 is like...$45-$50...

Secondly, If you're paying that amount for Yanuk then you're literally being taken to the cleaners somewhere along the line.

We stock the whole Evisu range, so therefore we have a contract based form of ordering, it isn't like some retailers who are always waiting around for some extra pairs...

and yea, the production cost of Evisu isn't far off the production price of most 'designer' jeans. It's the other areas, like design, management and agents who contribute to the higher prices.

I mean, Red Dot is made in the same factory as Evisu, yet their prices are 1/5 that of Evisu's.

Maybe now you'll start believing. It's all just one big rip off, yet we love it.
sorry, but i don't believe you at all...
a friend of mine is the owner of a shop that carries MiuMiu, Armani and Dolce&Gabbana...all of this labels are working with the same calculation...if the wholesale price of a MiuMiu shirt is 100€ the shop price is 250€...
why should Evisu make such a different calculation and less profit than other labels...
buying something for 20 pounds and selling it for 200 pounds is unbelievable...

  Reply With Quote
12-05-2005
  30
etre soi-meme
 
Lena's Avatar
 
Join Date: Jun 2002
Location: europe
Gender: femme
Posts: 23,965
in anycase, point made is that most boutiques have a X3 or a X2.5 up from the wholesale price.. apart -obviously- from jhaime's boutique

  Reply With Quote
Reply
Previous Thread | Next Thread »

Tags
cost, production
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

monitoring_string = "058526dd2635cb6818386bfd373b82a4"


 
All times are GMT -5. The time now is 05:56 PM.
Powered by vBulletin®
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
TheFashionSpot.com is a property of TotallyHer Media, LLC, an Evolve Media LLC company. ©2014 All rights reserved.