WSJ: How Can Jeans Cost $300?

Discussion in 'Streetwear and Denim' started by randomkoreandude, Jul 7, 2011.

  1. randomkoreandude

    randomkoreandude Senior member

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  2. HotlantaHoward

    HotlantaHoward Senior member

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    What is "raw garment" cost? Materials were already covered above.
     
  3. kmdsimpson

    kmdsimpson Senior member

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    What is "raw garment" cost? Materials were already covered above.
    Subtotal of Materials, Trim, Labor, and Waste.
     
  4. HotlantaHoward

    HotlantaHoward Senior member

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    Subtotal of Materials, Trim, Labor, and Waste.

    I see. Thanks.

    Poor job of visually presenting line items/totals.
     
  5. mattt

    mattt Senior member

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    LOL @ true religion jumping ship to 'classy' selvage denim
     
  6. Blackmaged

    Blackmaged Senior member

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    Has anyone read the Comments section yet? Tons of people either bragging about their $20 jeans or ranting about politics/government [​IMG]
     
  7. pickpackpockpuck

    pickpackpockpuck Senior member

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    ^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.
     
  8. AR_Six

    AR_Six "Sookie!"

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    Doesn't the parenthetical "excluding overhead" (assuming "overhead" also includes every other conceivable cost the company has) render this arithmetic calculation completely fucking meaningless?
     
  9. HotlantaHoward

    HotlantaHoward Senior member

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    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.
     
  10. kmdsimpson

    kmdsimpson Senior member

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    What is "raw garment" cost? Materials were already covered above.

    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.
     
  11. kmdsimpson

    kmdsimpson Senior member

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    ^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.
     
  12. kmdsimpson

    kmdsimpson Senior member

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    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.
     
  13. HotlantaHoward

    HotlantaHoward Senior member

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    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".
     
  14. CharlieAngel

    CharlieAngel Senior member

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    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.
     
  15. DrMoBueno

    DrMoBueno Well-Known Member

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    Has anyone read the Comments section yet? Tons of people either bragging about their $20 jeans or ranting about politics/government [​IMG]

    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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