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I would guess that the retailer doubles the price at least. That is pretty standard for retail.
Really that high? So the retailer is only paying 500 bucks for a pair of EG's and making 500 every pair?
http://www.nytimes.com/2010/04/29/fashion/29ROW.html
Yes and no. Wholesale is probably about 1/2 of MSRP. Instead of thinking about it as "making $500 on every pair" you should think about it as "making at most $500 on every pair". Shoes are particularly tricky for retailers, because you have to order at least one of every size, and multiples in the popular sizes. And when you get to high-end shoes, customers are more picky about having the right width as well. So for every 10D that you make $500 on, there's a 12.5E in your back room that nobody's buying, and you'll eventually discount down to wholesale (or less) just to move it.
Yes and no. Wholesale is probably about 1/2 of MSRP. Instead of thinking about it as "making $500 on every pair" you should think about it as "making at most $500 on every pair". Shoes are particularly tricky for retailers, because you have to order at least one of every size, and multiples in the popular sizes. And when you get to high-end shoes, customers are more picky about having the right width as well. So for every 10D that you make $500 on, there's a 12.5E in your back room that nobody's buying, and you'll eventually discount down to wholesale (or less) just to move it.
Good article -
Read "Genuine Authentic" about Polo Ralph Lauren. It takes you through the margins. Most of what is said here is true. And yes, larger stores get deeper discounts from larger manufacturers. And Polo has a business model where they can make money off of close-outs, maybe not all of them but most of them. The items in outlets are manufactured for profit even at outlet prices. BTW, RL rarely pays rent for outlet stores since they are the desirable anchor store.