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How can (eBay) sellers actually make a profit on extremely low priced NWT items? - Page 2

post #16 of 48
Quote:
Originally Posted by aj_del View Post
A Saint Andrews made RLPL SC has only 40 USd worth of hand labour in it ?

Highly doubt this as well. The post above did not indicate the hand work that goes in to other parts of the jacket, including lapel, shoulder, stitching
post #17 of 48
Quote:
Originally Posted by CashmereLover View Post
I don't really get it. I know there are fakes out there, but let's stick to what we can assume to be legit clothes. For example, I wonder how a seller can make a profit on e.g. a retail $895 RLPL sweater, when the asking price is about $200? How come Ralph Lauren is willing to sell such a sweater for less than $200 to those eBay sellers?
Shoplift-->Sell lot of "merchandise" to Ebay seller for cash to buy drugs--> Fenced! While I have no information on individual instances, I do know this happens often.
post #18 of 48
Quote:
Originally Posted by Wicky View Post
This I sincerely doubt.

I just recently bought a Cesare Attolini suit in Rome, sleeves obviously unfinished. Store would take care of this after adjusting sleeve, pants etc. all at proper lenght. Buttonholes would be done by hand. I inquired what the costs of this would if I had other jackets that needed to be done and was told this actually is quite some work and the costs would be approximately EUR 25 per handmade buttonhole. So 4 functional buttons on each sleeve would be EUR 200!!
Sorry, but your SA is taking you for a ride. I have my tailor sew functional buttonholes on my sleeves for €50 per jacket. If you consider that he is still making a profit, then the actual labour value + materials cost must be even lower.
post #19 of 48
And does 2 meters of cashmere cost like 50 USD to RL ?
post #20 of 48
Quote:
Originally Posted by holymadness View Post
It's not surprising. I've seen 100% cashmere RLPL sport coats for €400 at the outlets. A subsequent visit to the actual RL boutique showed that the retail price was €2500.

If there's anything that should shock you in all this, it's the insane markup brand names put on their products. The prices you're used to in B&S and on eBay are still at least 2x the cost of production, so that even if the item was sold for less than that, the company continues to turn a profit.

I've bought 100% cashmere mainline Zegna jackets for about 280. I routinely buy stuff at the outlets for about 10% of the boutique marked price.

OTOH why do you think they're making money at these prices?It's no different then buying day old bread from the baker. He can sell it to you for peanuts or you can pay somebody to haul it to the dump. The price isn't related to profit.
post #21 of 48
Quote:
Originally Posted by holymadness View Post
Sorry, but your SA is taking you for a ride. I have my tailor sew functional buttonholes on my sleeves for €50 per jacket. If you consider that he is still making a profit, then the actual labour value + materials cost must be even lower.

Actually my tailor also charges € 50, however the buttonholes are then not done entirely by hand.
post #22 of 48
FWIW: Cost of an item is not just material + labor. You need to count in many other things: rent for warehouses, stores, or website maintenance, advertisement, wage/salary for everybody from preproduction (design, market research, etc.) to post-purchase (customer service, etc), and many more...
post #23 of 48
Stolen by someone along the chain or else sub standard or fake goods.
post #24 of 48
Bought a wool/cashmere RLPL sweater two weeks ago for $199 at Marshall's marked down from $299. Occasionally you'll see things like this languishing at a discounter. Most of the other sweaters there are $20-$40, so even $100 looks freakishly expensive. I spent 20 minutes combing over it for flaws before pulling the trigger. Figured it was an overstock or a PSR.

I agree that many of the NWT items on eBay were likely shoplifted. Yet there are power sellers who are clearly buying big closeout lots.
post #25 of 48
I'm not surprised at all. I've always believed that most of this stuff actually costs 10 to 20% of the retail price to make.

The rest goes towards champagne parties.
post #26 of 48
Quote:
Originally Posted by Nicola View Post
I've bought 100% cashmere mainline Zegna jackets for about 280. I routinely buy stuff at the outlets for about 10% of the boutique marked price. OTOH why do you think they're making money at these prices?It's no different then buying day old bread from the baker. He can sell it to you for peanuts or you can pay somebody to haul it to the dump. The price isn't related to profit.
I'm sceptical that they're taking a bath. Consider that they either have to build an outlet store or pay rent on one, hire sales associates, checkout staff, and security, then ship the items from dozens -- if not hundreds -- of different retail boutiques to the location before repricing all of it. Seems like much less effort and expense to just destroy the clothes or rip out the tags and give them to the homeless.
post #27 of 48
Bear in mind, most outlets make a tidy profit selling merchandise made for the outlets. Any sales from mainline merch are just gravy. Better to get $300 for that $1,500 sportcoat than nothing at all.
post #28 of 48
Quote:
Originally Posted by GBR View Post
Stolen by someone along the chain or else sub standard or fake goods.

I've always assumed they fell off the back of a truck.
post #29 of 48
there is a fairly extensive diverting network at work in the US - how else would retailers like Costco end up with brands like Samsonite, Lacoste, and RL? Some of the strategies that diverters have already been laid out in previous posts.

Basically, diverted inventory can come in several ways from what I understand. Sometimes for example, a store will go out of business, and a liquidator will sell off the inventory for said retailer. Other times, a store will be affected by a hurricane or flood - and the merchandise liquidated by an insurance company.

Other times, diverters can persuade shop owners to abuse their wholesale account privilegs (i.e. buy me 20 RLPL sweatshirts from RL, I'll pay you in cash for cost + 10%, on the spot.

And of course, factory over runs or product for cancelled orders is indeed out there and can be had if you know how to use the network.

At any rate, these strategies can assist in getting cheap luxury goods onto the ebay marketplace.
post #30 of 48
Not directly related to e-bay merchants, but we have what would be considered a "high end clothing" store in my town, that has a separate shop across the street with items from the previous season for 70% off. Maybe there is just an incredible mark-up on some brands ?
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