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How much do they really cost?


dunny

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I've been disillusioned of mainstream designer jeans for a while, but I'm still curious to know how much the production cost of say a pair of Sevens are and how much a person buying a pair of Sevens in being ripped off (at least imo). The indigo, labor, etc. included.

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blah. all i can tell you from processing denim is that any of the distressed washes, ie LVC's, sugarcanes, dolce, waxed diors, basically any distressed look that is actually good - takes a LOT of time to complete. it is really difficult to consistently put out washes that good, and you're paying for it. it's something i came to appreciate when i started processing my own denim.

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Assuming a normal profit margin, take the suggested retail and divide by approx 5 - 5.5

Also consider the #pcs the brand produces. If the brand can commit to and produce let's say 10-20,000pcs per month, then their costs may come down a few dollars per pc..

Edited by spitzbrg on Mar 10, 2006 at 08:15 AM

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I used to work in a UK high street chain, and we would sell jeans at 14.99 and even on those they would still make a profit.

Even when we bought our staff uniform at 75% discount apparently they would STILL make profit on the items!

I guess it depends on factors such as are they using "organic Zimbabwean specially imported cotton" made from wasteful old style looms etc etc.

Its all a bit pretentious admittedly, but the marketing works, because here we all are, willing to pay big bucks for jeans when you can buy a "similar" pair of denim trousers elsewhere for around £15!!

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Depends where it's made. The final production cost including fabric, trims, sew, and wash in places like LA can be $40+/garment!

Outsourced to central america, the same jean (very likely with lower quality sew since the company wants to source globally, ie cost cut) using the same fabric will cost about half.

You pay companies like Seven a premium for doing a good job at promoting their brand, not just for the production cost.

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There is a huge difference between manufacturing cost and the true cost of a pair of jeans. It is actually soemthing that drives me nuts when people complain about the price of some things. They had to buy the looms, pay for advertising, pay managers salarie, etc...so these things should be taken into account as they are costs of doing business.

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generally a company wants to make 50% margin on their products. Most people the suggested retail is a 50% margin for the retailer. So take a price of a jean say it's $200 divided by 2 for wholesale and then 50% that for the landed cost for the company.

There is no set rule for how much things costs but that'll give you a general idea.

There are tons of variables, and retailers might mark up above what suggested retail is. A company might make more margins on some some jeans but on others the might make less margins. Also things made inhouse verses sourced materials, importing a quota costs etc etc. Sometimes a company marks things up or down just to get a good pricing structure throught the whole line.

www.youngestincharge.com

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do you think that same formula applies to stuff like bape, that is extremely expensive? I know that is overpriced but I've never felt or seen anything in person to know how exaggerated the prices are in relation to its quality.

honey, you're my religion

Even though you haven't yet expanded

To include a heaven after

Even though I have demanded it

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Naw stuff like Bape, even some of the luxury brands they don't go by that, they would do it with a different pricing structure.

They would probably set up their price points ahead of time say if they want the lowest price point t-shirt to be $60 and the highest price point be $120 then they would establish how many lower price point tees they would make then price everything else accordingly etc etc.

The production costs wouldn't be a big worry for a comapny like that and even if their production costs goes up, they would just say it's added value and just price the article of clothing even higher.

www.youngestincharge.com

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