But At What Cost?

This week, for our business class, we have been asked to think about garment pricing and the relationships between MSRP, wholesale cost and the cost of production. For the purposes of this exercise, I will not be breaking down the categories of overhead and market factors that are reflected in the eventual price of a garment hanging on the rack but it is worth mentioning that there are many things beyond the physical materials (fabric, buttons, etc) and labour time that factor heavily into the eventual sticker price of a garment. These include but are not limited to: marketing, administration, consumer demand, and most influential on price, brand cache...

Because I am omitting the above factors in my evaluation, I am going to focus on small designers with little-to-no name recognition to muddy the retail waters (By this I mean that they don't spend upwards of $80,000 in the effort to convince me that I need their latest 'It' bag!).

The simple formula that we have been asked to use is '2.0'. This refers to the principle that a designer/fabricator will double his/her cost of production to arrive at the wholesale price and that the retail outfit that buys the garment at said wholesale price will again double that price to arrive at the actual sticker price that you, the consumer or end user will pay for that 'have to have' garment.

The average consumer might be horrified to find out that this retail principle exists (some even use a 2.2 calculation!). As a designer who aspires to one day sell her stuff at a retail level, this formula sometimes scares even me! I have to charge that to make a profit and they're gonna in turn charge what?! Is it worth that much?! Am I worth that much?! Well, I think I am but will others? This remains to be seen...stay tuned!

Here's what I found...I even did the math!

FYI:

• Retail Price is the price we, as fashion consumers pay.


• Wholesale Cost is the cost the retailer pays to acquire the item for sale, from the designer/fabricator/agent.
  
• Production Cost is the sum of monies required to make the garment.

Champagne Short Hitched Dress:


Champagne short hitched dress with black contrast sash that can wrap around once or twice and be tied in a bow. Thigh length hitched skirt with visible contrast black reverse lining and a concealed side zip fastening.

Designer: Kelly Ewing
Retail Price: 245CAD
Wholesale Cost: 122.50CAD
Production Cost: 61.25CAD

The Winchelsea Dress:

The Winchelsea Dress is made in England, has a fitted bodice and is fully boned and lined throughout. The petticoat, made with layers of cotton and net, creates dramatic volume, ideal for making an entrance to any summer garden party. The petticoat is also removeable for a subtler silhouette.

Designer: Jack Wills
Retail Price: 410Cad
Wholesale Cost: 205CAD
Production Cost: 102.50CAD

Crepe Inset Peter Pan Dress:

Designer: Eley Kishimoto

Retail Price: 760CAD
Wholesale Cost: 380CAD

Production Cost: 190CAD

Taurus Aqua Dress:

Designer: Forever Unique
Retail Price: 305CAD
Wholesale Cost: 152.50CAD
Production Cost: 76.25CAD

Jesiré Oversized Floral Print Balloon Dress:

Designer: John Lewis
Retail Price: 190CAD
Wholesale Cost: 95CAD
Production Cost: 47CAD

Lady Laguna Dress:
Halter Neck Silk Dress With Ruching At The Waist And An All Over Tie Dye Print.

Designer: French Connection
Retail Price: 190CAD
Wholesale Cost: 95Cad
Production Cost: 47.50CAD

Lace Strappy Dress:

Crinkle silk crepe de chine dress with floral lace applique under bust, across strap and front of dress.

Designer: Karen Millen
Retail Price: 250CAD
Wholesale Cost: 125CAD
Production Cost: 62.50CAD

Jardin One Shoulder Dress:

The pretty floral print and placement sequin pattern at the hemline gives this dress a feminine touch while the one shoulder makes it right on trend. It has a soft bubble hem, hidden bust boning and is fully lined.

Designer: Coast Couture
Retail Price: 390CAD
Wholesale Cost: 195CAD
Production Cost: 97.50CAD

Sunrise Lame Dress:

Striped gold lamé dress with contrast black silk-blend weave back. Roksanda Ilincic dress is sleeveless and has a round neck, padded shoulders, internal silk-satin trimmed armholes, stitch detail, a fitted waist, a gold asymmetric double zip through back and is fully lined in silk.

Designer: Roksanda Ilincic
Retail Price: 1520CAD
Wholesale Cost: 760Cad
Production Cost: 380CAD

Sirene Stretch-Cotton Mini Dress:

Beige stretch-cotton strapless mini dress with a ribbed trim, wavy stiffened hem, seams under the bust, a vent at bust, fitted waist and a concealed zip fastening at back.

Designer: Paul & Joe
Retail Price: 455CAD
Wholesale Cost: 227.50CAD
Production Cost: 113.75CAD


Can you tell that I'm thinkin' summer? Are you shocked by the retail math? I'd much rather work it the other way...you know...a la discount! Now that's some math that I'm good at!