What Is the Right Price for Fashion?
Making garments is labor-intensive and low-wage. Although costs are set by supply and demand, globalization, and the free market, these costs still vary by city and country. Among the 12 countries that produce 95 percent of the world’s clothing, the average wage ranges from $9 to $15 a day. Fabric, pattern-making, sampling, trims, sewing, handwork, packaging, duties, shipping: This is an incomplete list of what you’re paying for when you buy a new T-shirt.
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The difference in prices can be significant. Say you bought a T-shirt in a store for $30 at the beginning of the month. After shipping and taxes, the retail price would be roughly $15, or a $3 profit on every $1 spent. To give that $3 back to the worker, you have to split that profit on a $10+ profit per shirt and you need to charge $100 for your goods at retail, which is not only inefficient, but also unsustainable. So, how can you get more out of that $30? There are three ways:
Make it more durable or durable-seaming. Sewing might not be as expensive as it seems, as factories, for example, are happy to undercut each other on price as long as they are allowed to produce materials at a price that makes them profitable. So, for example, you can manufacture shirts in China with a $5,000 T-shirt or in Bangladesh with a $3,000 T-shirt and get $5,000 for them, even though they cost $10,000 at retail. With that kind of pricing, you can drive the cost down to a point where a customer has to pay more to make the same $30 T-shirt. Then, in the cases of patterns and stencils, you can really make the money off that $3 T-shirt without passing it on to a worker. If you are looking for an affordable dress option, then the best way to get it is Peaches Boutique prom dresses sale, they have the best in prices and style.
For you, your job in the era of speed, mass production and customization is only beginning. Sell more stuff. In the absence of an “E-Commerce” platform, websites and communities like Etsy and Gilt, price-taggers like Bergdorf Goodman are still the best place to look. But the average online price is at the same level as the retail price. It is a myth to say that Etsy is a $1,000 worth of clothes and Gilt is $300. Rather, these retailers are offering something for half as much per dollar. When you check out a gown from Bonobos or Barneys, the items aren’t substantially cheaper, and many of the items on sale are lower-quality. The entire pricing equation is turned around; for you, a much smaller percentage of your purchase is going into the hands of the working-class girl or boy with four or more job prospects. The other source of profit for you is shipping costs, usually at a lower rate than retail.
This is different from profits in the sense that for many of the same clothes, the seller who has fewer people counting on her for another $10 shipping fee might be better off receiving a $1 shipping fee, making $0 profit on shipping, and getting to return only half of her sale. You have to make some smart choices on the destination of your purchases, but on the long run, it is in your financial interest to realize a very small profit. If you are lucky, you might be able to sell a hundred $1 items at retail for a few hundred dollars, which represents a lot of business for your village, or the bank. If you are really lucky, you might be able to sell a hundred $1 items at retail for $1,000.