wholesale prices and markups

[oohh AN]

I'm doing research for a class project and I was wondering if anyone has any info?

I contacted Kiya, but he declined due to Self Edge being a family owned business.

I basically want to know the wholesale price of an order of jeans straight from one of those manufacturers and the number of jeans that one typically has to order.

I know that you basically get taxed about 20% on top of the wholesale price...then you gotta add in the frieght charges and etc.

[damienos]

typical markups are between 1.5 to 3 times so you do the math. i doubt anyone will tell u the exact wholesale price!

miminum orders depend on the manufacturer's policies and the market the store is in. usually flexible

[HOVkid]

No one will tell you unless you are in the business. It makes NO sense for anyone to tell you because that'a not good for their bottom line...if you see what I mean.

[coleslawyum]

^^^Look, thats why people go into business. How else are you going to make a profit? Everything you buy is marked up from wholesale price. Just use your common sense.

Here are costs of making a garment:

Design + Sales

Fabric

Trims

Manufacturing

Shipping

Customs

Storage

=

Wholesale Price

Here are costs of selling a garment:

Stock

Store overhead (including but not exclusively to: rent, utilities, salespeople etc., etc.)

Interior decorating or general upkeep

Profit (without turning off customers)

=

Retail Price

It's pretty simple, if you think about it.

[damienos]

Hmmm actually does it matter to the consumer?

what matters to them is the final retail price and whether they can afford it.

look at the cult brands and mass market products. ALL would have wholesale prices though i doubt its even in the same ballpark.

yet consumers have little choice (ironic) when i comes to what they want to buy.

If they want to buy a 300 dollar denim they will buy it...unless the exact same thing can be had for less in another store.

some stores sell at lower mark ups cos they may want to introduce the brand slowly into the market. or some mark up really high to ride on high demand. it all depends on market forces.

I certainly don't think it really hurts their bottom line.

But all the same i won't tell u the exact wholesale price cos there could be other stockists of the brand who get different prices. it hurts relationships rather than bottom lines per se.

my 2 cents

[fre-co]

I'm doing research for a class project and was wondering if anyone can help me buy some Japanese jeans like Samurai, Sugarcane and Warehouse for wholesale prices....? (10).

Why is it that all posts starting with "I'm doing a class project" are retarded?

[knucks]

Hmmm actually does it matter to the consumer?

Yeah, I think it does. I understand the business model and profits and all that, but I'll be a lot less inclined to buy something for $300 if I know that wholesale it is $75.

[coleslawyum]

I agree with damienos. The fact that you can actually afford a jean that costs $300 is a luxury in itself. If you have the money (or a credit card) you'll buy something you like not matter what the cost. I don't think the wholesale price has any bearing on whether or not you're going to buy something. When I see something I like and it cost like $1000 or so, I think to myself how am going to get that money to buy it. (rob a bank, hit off some chick, actual work, ask my parents… etc. etc.) If I can't afford it, then I wait till I can.

[horriblyjollyjinx]

No one will tell you unless you are in the business. It makes NO sense for anyone to tell you because that'a not good for their bottom line...if you see what I mean.

It's no secret what the markup is on clothing. On mid-level stuff it's about 2.5, but of course varies.

So, the wholesale price is roughly retail/3.5.

[Chicken]

guess how nike made their money?

[theetruscan]

guess how nike made their money?

Prostitution?

[LA Guy]

The retail price is typically between 2.2 (called a 60 point markup, I'll leave you to figure out the math) and 2.6 times the landed price (wholesale+shipping+extras). The "extras and shipping" can often account for price differences between countries, continents, etc... The difference between manfacturing cost and wholesale can be done pretty much the same way, though these rules of thumb don't hold for stores with huge buying power, especially not for their large volume brands. That's why the big chains can afford to have 20% off sales every weekend (though you will notice that in the fine print of the Macy's flyers, there are plenty of exemptions from the sales.)

[LA Guy]

Yeah, I think it does. I understand the business model and profits and all that, but I'll be a lot less inclined to buy something for $300 if I know that wholesale it is $75.

In that case, always shop at boutiques, and never buy anything cheap from a larger chain store.

Serious.

[damienos]

Yup.

Also when you buy stuff in larger quantities, the supplier would typically give you better discounts. but the chain stores will still charge you a premium for the item. As for small boutiques, the margin is really really small.

At least for the small boutiques you know the small profit is usually going directly to the guy (usually the one doing the buying, VM, etc...) manning the store. It's his or her 'paycheck'

trust me...being there, doing that.;P

also wholesale is just part of the equation... like LA guy said the landed price is the actual cost to the retailer. and it all adds up. economies of scale and all that jazz will help reduce that but not so much for small specialty boutiques.

what you are paying for, at the small boutiques is the intimacy of the shopping experience... knowing the fella at the store stuck his neck out to bring u awesome stuff with no other branches covering shortfalls in sales due to people shopping at marginally cheaper prices but at significantly higher profit margins. hahaha.

but what the hay, i just like talking to my customers in a brick and mortar store...now thats another can of worms... internet vs B&M

hahaha

[Chris902]

Why is it that all posts starting with "I'm doing a class project" are retarded?

Because anyone who goes on a message board to try to get other posters to do their school work for them is retarded.

[BBC]

The fact that you can actually afford a jean that costs $300 is a luxury in itself.

Realised this last week walking through Turkey. I had a $300 pair of jeans on and another expensive pair where I was staying and these people could hardly keen a roof over there heads. That's pretty fucked up. Really made me think.

[annacobra]

Yeah, I think it does. I understand the business model and profits and all that, but I'll be a lot less inclined to buy something for $300 if I know that wholesale it is $75.

let's not forget that many consumers would not buy a $300 pant if it was $100.

Common thinking is that price is directly related to quality and more so exclusivity. Might be true for exclusivity, but not always for quality...

[spacemanvt]

there was a wholesale list for nudies from spring 08 running around on mynudies. from what I remember whole sale price was typically half of retail price. ill find it if i get around to it.

[kiya]

I can definitely tell you about wholesale prices, it's not a secret..

The markup for most jeans in our store is 1.7 to 2.0.. far lower than the industry standard.

This is due to two things, the Japanese are not used to as high of a markup as we're used to in the western world so the offered wholesale price isn't nearly as low as it would be if you were buying from a brand in Europe or America. The other factor being duties, taxes, shipping, etc. Denim is taxed 16.9% BASE, then from there there's 3 to 5 other fees/taxes totaling ~20%. Those two things coupled together equal a terrible retail markup.

If we marked up our jeans the same as almost every single other retail store in America Flat Head jeans would be sold for $400 and Iron Heart would be sold for $410.

[datasupa]

Why is it that all posts starting with "I'm doing a class project" are retarded?

hmmm... maybe you should do a class project on it.

let's not forget that many consumers would not buy a $300 pant if it was $100. Common thinking is that price is directly related to quality and more so exclusivity. Might be true for exclusivity, but not always for quality...

true, there is not a simple relationship between price and desirability. cheapskates and peons naturally want discounts. other people (rich snobs) actually like to pay more for an item, it makes it seem more exclusive. also, paying more has been scientifically proven to give greater enjoyment. it's called the price placebo effect (just ask nick spitzer).

[oohh AN]

thanks kiya.

I was just hoping for any kind of info. I guess I'll just have to do the math myself.

can you please tell me how many jeans are typically in an order?

I think this post would qualifiy as researching? there are plenty of shop owners on this board; plenty of people who know this kind of stuff. I've contacted both kiya and Gordon from BiG.

for them....its about a 2.2 mark up.

[16steps]

guess how nike made their money?

young asians?