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WSJ: How Can Jeans Cost $300?

randomkoreandude

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WSJ: How Can Jeans Cost $300?
JEANS0711-alt-1.jpg
Interesting read ...
 

HotlantaHoward

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

kmdsimpson

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

HotlantaHoward

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Originally Posted by kmdsimpson
Subtotal of Materials, Trim, Labor, and Waste.

I see. Thanks.

Poor job of visually presenting line items/totals.
 

Blackmaged

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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
facepalm.gif
 

pickpackpockpuck

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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.
 

HotlantaHoward

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Originally Posted by AR_Six
Doesn't the parenthetical "excluding overhead" (assuming "overhead" also includes every other conceivable cost the company has) render this arithmetic calculation completely ******* meaningless?

Yes.
 

kmdsimpson

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Originally Posted by HotlantaHoward
What is "raw garment" cost? Materials were already covered above.

Originally Posted by HotlantaHoward
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.
 

kmdsimpson

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Originally Posted by pickpackpockpuck
^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.
 

kmdsimpson

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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.
 

HotlantaHoward

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Originally Posted by kmdsimpson
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".
 

CharlieAngel

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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, F***ers.
 

DrMoBueno

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Originally Posted by Blackmaged
Has anyone read the Comments section yet? Tons of people either bragging about their $20 jeans or ranting about politics/government
facepalm.gif


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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