Harry Rosen pricing/business model

Viral · Feb 2, 2011

y'all need to let it go....................seriously. 2 pages on a thread questioning a"business model" because you don't like the price of something????

If you haven't figure it out yet, EVERYTHING IS MORE EXPENSIVE IN CANADA.

Move elsewhere or be savvy and find ways to acquire goods at better prices.

Doc4 · Feb 2, 2011

Originally Posted by SuitMyself

I've heard some clients drop about $100,000 or more in one visit.

Who in Canada, with a $100,000 clothing budget, is going to head on down to Harry's ... rather than popping over to London for some nice bespoke ... or off to New York for high-end lables ... or ... anywhere other than down at the mall??

Originally Posted by Xenon

I know about a half dozen canadian millionaires and price is a very BIG issue especially for clothing. Some of them would choke at even $1000 shoes. They spend far less on clothing than a small wage earner like me. Of course they have far more valuable assets/investments than I do.

Time and again one will hear advice on how to become a millionaire ... frugality is always a key trait cited for those who are self-made $1,000,000+. If a sports team or a record lable hands you $50 million for doin' your thing, you can bling it out ... and no doubt will. If you make your money the old fashioned way you do it one dollar at a time and throw nickles around like manhole covers. (Deep pockets and short arms, as they say.)

Redwoood · Feb 2, 2011

...except that time is money.
If you spend an hour (or eight) comparing prices etc, and find something that is $200 cheaper, but your time is worth $500/h, then those are false economies.

Nicola · Feb 2, 2011

Remember in the old days many of Rosen etc customers would have been offended at the idea of a discount. They aren't aiming the business at the everyday low price shoppers.

alt.don · Feb 2, 2011

I agree that they are not aiming at the low end shopper simply based on the quality of the clothing and the price thereof. That said, you develop customer loyalty in many different ways. One of the big ones is offering small/medium/whatever discounts to those who have shown brand loyalty. I would echo one posters earlier comments....all of my in-laws are doctors and none of them shop at Harry's or HR. I find it kind of funny as they are all pretty cheap.

M. Bardamu · Feb 2, 2011

In this age of online shopping and price comparisons, I have NO idea how Holt Renfrew and Harry Rosen stay in business...I was looking at an old Canadian Business magazine from 2007 (I keep the ones I contributed to) and there was an advertorial spread with a $995 Z Zegna jacket, $240 Canali tie, etc. Good luck.

Redwoood · Feb 2, 2011

Besides, not everybody is that much into clothes.
I can imagine many people go to Rosen where their SA shows them stuff for 20 minutes, they try it on, and leave the store with it (or next week with alterations) right after. That's as much they want to think about the clothes they buy. They still want to look good, but don't want to deal with it. That's where a trusting relationship with an SA is important.

The MTM guy at the Bay told me that a certain TV personality gets all his ties and suits from him.
(take this with a grain of salt because the fella likes to tell a lot of stories)
Whenever the TV guy needs something, his assistant calls, the SA picks out a dozen ties according to what he knows the customer likes, then the assistant picks the stuff up pretty much unseen.

intent · Feb 2, 2011

A better deal for them would be to offer you more for your money instead of giving you a discount. Adding value beats discount prices. Business 101.

Redwoood · Feb 2, 2011

Originally Posted by intent

A better deal for them would be to offer you more for your money instead of giving you a discount. Adding value beats discount prices. Business 101.

...depending on the market segment you are targeting.
For Harry Rosen's segment, price is definitely not the deciding factor.

Nicola · Feb 2, 2011

Hell I've seen Z Zegna suits for â‚¬80. Sure it'll cost you more then 1K for the plane ticket here. The good chance you'll find nothing in the outlet that you like. But minor issues.

1) Veblen goods

2) Snob appeal

3) Bandwagon

4) Trust.

To a certain extent Rosen plays on all these things. Cutting prices would hurt 1,2 and 4.

M. Bardamu · Feb 2, 2011

Originally Posted by intent

A better deal for them would be to offer you more for your money instead of giving you a discount. Adding value beats discount prices. Business 101.

This place does have pretty good value-add...free lifetime alterations on the suits you buy from them, for instance.

audiophilia · Feb 2, 2011

I always enjoy my shopping experiences at Harry Rosen. My gal on Bloor St. has been great over the years. Like the valet. Like the pampering. Always get a call for the sales. Lots of good deals.

The non sale prices are steep. But, you know that going in, right?

SuitMyself · Feb 2, 2011

Originally Posted by Redwoood

...except that time is money.
If you spend an hour (or eight) comparing prices etc, and find something that is $200 cheaper, but your time is worth $500/h, then those are false economies.

Very true.

Originally Posted by Nicola

Remember in the old days many of Rosen etc customers would have been offended at the idea of a discount. They aren't aiming the business at the everyday low price shoppers.

Very true. The average annual income of their high roller customers is more than what you and I would make in twenty lifetimes.

Originally Posted by alt.don

I agree that they are not aiming at the low end shopper simply based on the quality of the clothing and the price thereof. That said, you develop customer loyalty in many different ways. One of the big ones is offering small/medium/whatever discounts to those who have shown brand loyalty. I would echo one posters earlier comments....all of my in-laws are doctors and none of them shop at Harry's or HR. I find it kind of funny as they are all pretty cheap.

Harry Rosen does NOT offer discounts. Heckling over prices is not tolerated. If you want to heckle, they will simply say no, and then walk away from you to give you "space" to decide (read that as LEAVE).

Originally Posted by M. Bardamu

In this age of online shopping and price comparisons, I have NO idea how Holt Renfrew and Harry Rosen stay in business...I was looking at an old Canadian Business magazine from 2007 (I keep the ones I contributed to) and there was an advertorial spread with a $995 Z Zegna jacket, $240 Canali tie, etc. Good luck.

There are others who can afford those prices--those others just aren't you and I and most average folks. As I've said, some Harry Rosen clients drop more than $100,000 in one visit. The core Harry Rosen customer makes, as I've said, more money than what you and I would make in twenty lifetimes.

SuitMyself · Feb 2, 2011

Originally Posted by A Canuker

One of the SA's in Calgary was telling me about a wife who comes in once a year and purchases 75 cashmere socks for her husband at $80 a pop. He only gets 5+ uses out of each....

That's $6000 on 75 pairs of socks. Some people have more money than they know what to do with.

Originally Posted by Xenon

$4,500 is not chump change at Harry or Holt's. This is Canada, not LA, Miami, Monaco ect.
You could probably count on one hand the number of 45K clients per year each SA has. I had one SA a little excited he might loose a quick 3K sale.

Times are tough all over. One SA thanked me several times for going back to him and even called me by phone at closing to thank me for my business as it was his only sale that day - and this was certainly not 45K.

I know about a half dozen canadian millionaires and price is a very BIG issue especially for clothing. Some of them would choke at even $1000 shoes. They spend far less on clothing than a small wage earner like me. Of course they have far more valuable assets/investments than I do.

$4500 is not chump change, yes, you're right. Well, at least, in this day and age for most people, $4500 is not chump change. All I'm saying is that for Harry Rosen's CORE customers, $4500 is chump change. See the story about the wife who bought 75 pairs of cashmere socks for $80 a pair. There are others who can afford those prices--those others just aren't you and I and most average folks.

Originally Posted by alt.don

The store can choose to do what it wishes. My only point is that I did not think asking for a %13 discount was unreasonable. Considering that the winter line is now between %40 to %60 off giving the aforementioned %13 is pretty reasonable. I would go so far as to say that you would be crazy to not ask for a discount on anything that you buy. People will ultimately vote with their feet. I like the store and its look and feel, also find the SA's quite nice and knowledgeable. I will continue to shop there but more strategically as it were.

Heckling over prices at Harry Rosen is NOT tolerated. They do not allow that, period. They have an image to maintain.

wEstSidE · Feb 2, 2011

whenever you guys start talking about money on here i just dont know what to do.

why don't you all start your own clothing firms?

Harry Rosen pricing/business model

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