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WSJ: How Can Jeans Cost $300?

post #1 of 127
7/7/11 at 2:45pm
Thread Starter 
WSJ: How Can Jeans Cost $300? Interesting read ...
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post #2 of 127
7/7/11 at 2:48pm
What is "raw garment" cost? Materials were already covered above.
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post #3 of 127
7/7/11 at 2:52pm
Quote:
Originally Posted by HotlantaHoward View Post
What is "raw garment" cost? Materials were already covered above.
Subtotal of Materials, Trim, Labor, and Waste.
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post #4 of 127
7/7/11 at 2:54pm
Quote:
Originally Posted by kmdsimpson View Post
Subtotal of Materials, Trim, Labor, and Waste.

I see. Thanks.

Poor job of visually presenting line items/totals.
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post #5 of 127
7/7/11 at 2:56pm
LOL @ true religion jumping ship to 'classy' selvage denim
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post #6 of 127
7/7/11 at 2:57pm
Has anyone read the Comments section yet? Tons of people either bragging about their $20 jeans or ranting about politics/government
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post #7 of 127
7/7/11 at 2:59pm
^Correct, though if I'm not mistaken, their math is off by $1 ($56.06 should be the cost based on their numbers.) Their graphic should have been clearer.
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post #8 of 127
7/7/11 at 3:03pm
Doesn't the parenthetical "excluding overhead" (assuming "overhead" also includes every other conceivable cost the company has) render this arithmetic calculation completely fucking meaningless?
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post #9 of 127
7/7/11 at 3:05pm
Quote:
Originally Posted by AR_Six View Post
Doesn't the parenthetical "excluding overhead" (assuming "overhead" also includes every other conceivable cost the company has) render this arithmetic calculation completely fucking meaningless?

Yes.
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post #10 of 127
7/7/11 at 3:08pm
Quote:
Originally Posted by HotlantaHoward View Post
What is "raw garment" cost? Materials were already covered above.

Quote:
Originally Posted by HotlantaHoward View Post
I see. Thanks.

Poor job of visually presenting line items/totals.

Yes, I agree. Happened to have Excel handy, so just popped the numbers in to check.
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post #11 of 127
7/7/11 at 3:10pm
Quote:
Originally Posted by pickpackpockpuck View Post
^Correct, though if I'm not mistaken, their math is off by $1 ($56.06 should be the cost based on their numbers.) Their graphic should have been clearer.

Yeah, that's right. The type in the chart was so small I didn't notice.
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post #12 of 127
7/7/11 at 3:14pm
The article's a little murky on the numbers. They cite 2.0 - 2.5 x markup from "cost" to "retail". I don't see how you get there from $56.06 to $310, as in this example. Still a good read. Thanks for posting, RKD! edit: Maybe "cost" is the "projected wholesale price" that is being marked up. But "projected wholesale price" is the cost to the retailer, not the true cost of the jeans. I think the takeaway here is that there is an obscene amount of money to be made if you have a successful brand.
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post #13 of 127
7/7/11 at 3:16pm
Quote:
Originally Posted by kmdsimpson View Post
The article's a little murky on the numbers. They cite 2.0 - 2.5 x markup from "cost" to "retail". I don't see how you get there from $56.06 to $310, as in this example.

Still a good read. Thanks for posting, RKD!

Those numbers would make sense if they meant to write from "wholesale cost" (from retailer's perspective) to "retail sale price".
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post #14 of 127
7/7/11 at 3:19pm
What's the typical mark-up in fashion? In the food industry, typical is 500% over raw cost. To the outside observer, that may seem like a "rip-off", but frankly, it's just barely enough to make it worth my time. I gotta eat, too, fuckers.
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post #15 of 127
7/7/11 at 3:30pm
Quote:
Originally Posted by Blackmaged View Post
Has anyone read the Comments section yet? Tons of people either bragging about their $20 jeans or ranting about politics/government

Wow. People who read WSJ online and take the time to comment are some angry mofos.

I could feel my blood pressure rising just reading their anger.
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