H Markopolos
Active Member
- Joined
- Mar 25, 2015
- Messages
- 40
- Reaction score
- 7
I sometimes think that both companies and consumers could be spared a lot of pain by not being too greedy. And it really is a problem with both sides. Companies should not offer something that is fundamentally unsustainable. I mean, of course someone is going to buy if you promise the world for very little money, but that's extremely shortsighted. On the flip side, consumers should expect to pay more if they want the world. Either that, or you settle for something you are more comfortable with, pricewise.
Look, if you want a pair of MTM jeans, here are some from Luxire: http://custom.luxire.com/collections/pants/products/luxire-denim On sale at $80, down from $100, I suspect just because they want people to try them out. And they can afford that lower price because it's not their core business, and they can make up the margins elsewhere. They are using, from what I've read, decent denim, but not a name brand denim, They could probably get that for you, but probably at an upsell. They also own their own production facilities, and their business is based on MTM, so there is already a considerable cost savings there. One off MTM from a production faciltiy in LA will result in a considerably upcharge. And they are not using American labor. Indians are just as good at making a pair of jeans as are an LA factory. Are you going to get an incredible, unique, denim for that price. No, that is also available, but you are looking at 2x that price, for RTW. For Luxire, even, if you look through their site you'll notice that while their standard offerings are extremely inexpensive, if you want a Molloy&Sons tweed sportsjacket, it is going to run you $650. A heavy sashiko jacket made from imported Japanese fabric? $399.
Also, to clear up a common misconception, a vendor cannot afford to sell to the puiblic that wholesale. This is a common misconception. The POS system, the fulfillment, is all much more complicated. They can afford to sell for lower than the price of what a retailer would have to sell at, yes, if they have a direct to consumer model, but they have to account for the additional overhead, which is significant.
I agree with your conclusion in your last paragraph. As far as someone who sells close to "wholesale," I submit that Josh Gustin has a keen fashion sense/perspective and business acumen that Mr. Lawless only dreams of!! I also submit that your elementary explanation of basic accounting and business fundamentals should be required reading for the born again accountants on the Selvedge and Style Forum.