Originally Posted by Fuuma
Name me one even semi-established fashion brands that distribute by themselves as this type of lower pricepoint? You guys are fighting the system, there is nothing special with that situation. Brands that distribute directly do it like Burberry; at the same pricepoints as in theirs and other stores. As I previously said what you had before was an obscure, non-established, hardly distributed brand kickstarting their business with direct marketing. A situation that was akin to selling to friends of friends in the days before the internet.
I'm not sure if we're agreeing or dis-agreeing
My point was that adding another party to the mix means that profits gets split more ways which usually necessitates a price increase to keep everyone happy.
I live in Canada and we're acutely aware of how much less some things are in the U.S. as compared to Canada. Years ago I was shopping for a 5 channel home theatre amplifier and was considering the Parasound HCA-2205AT at MSRP $1999USD. Stores in Canada wanted $5500 Cdn. Even after the currency exchange the difference was unpalatable. Product was distributed in Canada through a Canadian distributer. Same thing with Big Green Egg
. In the U.S. it's about $6-700 USD while in Canada (through a Canadian distributer) it'll set you back $1300CDN. Keep in mind that we're almost at par and have been for a while.
Originally Posted by culture
It makes no sense unless you take into consideration the fact that he will likely sell many more pairs, which makes up for the loss of profit per unit.
That said, the jeans seem to be worth as much as similarly priced jeans.
I don't think that logic is completely applicable in this case. These jeans are made by one man and there are only so many jeans he can produce at a time. Another post above indicated that he had to take a hiatus because of a backlog of work. You can price the jeans at $1000 and that still won't help him make more jeans faster. The only way is to mechanize his production line but Machine Made Jeans
doesn't really have that certain cachet. Another way is to hire and train people to help him make them. However, you're left calling them Multi-Man Made Jeans
. He can also out-source to China. Who wants China Made Jeans