November 13, 2009
The Issue of Pricing
I want to write a full length, thoughtful post about this this weekend...but I've been thinking a lot about the issue of pricing fashion goods a lot recently. In design school, you're taught how to price your goods based on your material and labor costs...but that doesn't quite work, because that gorgeous Hermes bag isn't probably costing the brand half of ten thousand dollars or whatever to produce. So maybe the idea is to start with the consumer you want to sell you, and price your goods comparably to the other brands you'd like to compete with. Or it can just be arbitrary...
On the other hand, as a consumer (and fashion industry insider), I'm perpetually confused about what I should or want to be spending on any particular item. What is the price something is worth - is it simply what I'm willing to pay for it? Or what I think it cost to manufacture? Is it the retail price, or the discount store price, or the sample sale price, or the wholesale editor's special price, or the online secret shopping club that anyone can join price???
What is your purchase policy?