# WSJ: How Can Jeans Cost \$300?

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

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2. ### HotlantaHowardSenior member

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What is &quot;raw garment&quot; cost? Materials were already covered above.

3. ### kmdsimpsonSenior member

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

4. ### HotlantaHowardSenior member

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Subtotal of Materials, Trim, Labor, and Waste.

I see. Thanks.

Poor job of visually presenting line items/totals.

5. ### matttSenior member

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LOL @ true religion jumping ship to 'classy' selvage denim

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7. ### pickpackpockpuckSenior 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"Sookie!"

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Doesn't the parenthetical &quot;excluding overhead&quot; (assuming &quot;overhead&quot; also includes every other conceivable cost the company has) render this arithmetic calculation completely fucking meaningless?

9. ### HotlantaHowardSenior 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. ### kmdsimpsonSenior 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. ### kmdsimpsonSenior 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. ### kmdsimpsonSenior member

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The article's a little murky on the numbers. They cite 2.0 - 2.5 x markup from &quot;cost&quot; to &quot;retail&quot;. 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 &quot;cost&quot; is the &quot;projected wholesale price&quot; that is being marked up. But &quot;projected wholesale price&quot; 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. ### HotlantaHowardSenior 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. ### CharlieAngelSenior 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 &quot;rip-off&quot;, but frankly, it's just barely enough to make it worth my time. I gotta eat, too, fuckers.

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