STYLE. COMMUNITY. GREAT CLOTHING.
Bored of counting likes on social networks? At Styleforum, you’ll find rousing discussions that go beyond strings of emojis.
Click Here to join Styleforum's thousands of style enthusiasts today!
Styleforum is supported in part by commission earning affiliate links sitewide. Please support us by using them. You may learn more here.
Think someone may have mentioned David Mellor previously. Some really good looking stuff! Prices are not Pott crazy, but maybe ~50% higher than the likes of Alessi and Georg Jensen.
Anybody know about the quality level? Some of the designs I like below.
David Mellor London:
View attachment 1483894
David Mellor Minimal:
View attachment 1483895
David Mellor Odeon:
View attachment 1483896
I don't work in the consumer space, but from what I have gathered, it is just huge profit margins. Herman Miller and Knoll both have gross margins 30%+ and net income 10%+, and other luxury goods/fashion brands have 50%+ gross margin and 15% net income.
My best guess is that licensing is more expensive than having in house designers, but a place setting like that probably has on the order of $20-30 in COGS, so before any licensing cost, you're looking at 80-90% gross margin.
I really don’t think 10-15% operating profit is in any way crazy. Difficult to cover cost of capital at below 10% EBITDA for almost any consumer facing business
Moving away from Northern Europe...
Here's what I use. My partner and I picked them up in Seoul. They are a slighltly updated version of traditional Korean bangjja (bronzeware). I dig the elongated forms. They require an occasional polishing (and these pictured haven't been polished in a while).
Didn't opt for a full set. We just use the basics anyway.
These are particularly divisive. They are flat instead of round, and many people find them difficult to use. The theory is that the flat ones are more ergonomic and easier to use for a long period of time, but it definitely takes some getting used to. I've started to prefer them. I believe this flat shape, as well as a preference for metal, is fairly contained to Korea.I like these a lot except that I really don't like metal chopsticks.
If you look at a traditional retailer like Target, its net earnings are in the ballpark of 4%.
Retailer vs brand owner. The difference is huge. If you basically just sell other people’s brands at huge scale you can of course manage at lower EBITDA (5% is good for grocery retail). But the model is very different if you develop brands. Have a look at the profit margins of big brand owners vs retailers. And then at the economic profit creation / return on capital.
This, and not the other assumption.fwiw comment for *flatness* has to do with the handle i think