This Minority Clothing Brand Is Willing To Disclose The Cost. Is It True That It Has Conscience?

According to the world clothing shoes and hats net, under the leadership of Everlane,

Emerging

The Transparent Pricing is highly recommended.

The practice is nothing more than drawing the manpower of each garment.

Transport costs and top secret - gross margin.

2017 at the beginning of the year, Elizabeth Suzann official website of the young fashion brand in Nashville, USA, published a long article "money theory", which attracted more than 60 long commentary, and hardly saw the trace of the irrigation party.

Elizabeth Suzann broke the mysterious pricing strategy and broke it together with charts and hand-painted flowcharts.

From the cost point of view, fabric and manpower are the main cost of making clothes.

In order for the brand to run better, the price holder will add profits to the cost.

Then, the traditional pricing mode will double the sum of the two, and come to the wholesale price.

The price tag faced by customers, that is, zero price, is often doubled on the basis of two degrees above wholesale price.

In the past few years, a large number of online direct selling brands, such as Everlane, Warby Parker and Bonobos, have chosen to bypass retailers such as department stores and buyer shops, and sell them directly to consumers through cheaper networks, thus gaining a firm foothold.

The same is true of Elizabeth Suzann.

In the money theory, the founder of Liz Pape takes the $185 blouse as an example. 34% of the price is used to pay the cost of manpower, fabric and wastage, and the remaining 66% is attributable to gross margin.

If you look at it roughly, you will feel that you are a big head and earn $121.84 for no reason. But most of this is actually used to cover the company's operating costs, including equipment, photography, modeling, pportation, maintenance and so on. The real profit in the brand pocket is less than $18.5.

This is just a set of idealized operations starting from cost.

When the brand takes the market into consideration, it needs to adjust gross margin.

Reduce the gross margin of the product which is higher than the expected price of the consumer, and raise the gross profit of other products to compensate.

Therefore, the single product aggregated into the background ledger may be the same price, but the profit contributed is not the same.

The setting range of Elizabeth Suzann is between 40%-70%.

For the gross profit part, Elizabeth Suzann is more explicit than Everlane. Although the latter costs the cost of each garment in front of consumers, the gross profit distribution is still a mystery.

In contrast, Elizabeth Suzann, which is relatively simple and clear at the beginning of its brand establishment, is more likely to say clearly about the flow of capital.

Product pricing has never been a simple addition and subtraction algorithm. Elizabeth Suzann, Everlane, Vrai, Oro and other brands that publish information on cost information can not give standard answers.

Their merit lies in letting the public realize that if a garment has no brand brilliance and does not go through wholesalers' hands without advertising promotion, what will be the retail price range?

It's like a pair of Everlane shoes that cost 170 dollars. If you sell them in a traditional retail framework, the price will be around $425 below the line.

Everlane's black T-shirt is priced at $15, and it should be sold for $1190 after it is labeled with Givenchy.

Not only the millennial generation that pays much attention to price is quickly captured, but customers who used to buy Seasonal goods in discount stores in recent years are equally eager to do so: they can no longer play the traditional discount retail game.

As a matter of fact, everyone knows that the cost is wrapped up in a profit.

The competitive price lets these niche brands quickly accumulate a group of loyal customers. It even quietly pfers the duties of market publicity to consumers, but this is a small psychological game which is not applicable to every brand.

{page_break} takes Everlane as an example. It starts with the banner of pparent pricing, and then copies the same logic to the supplier network.

But what we can't ignore is that Everlane itself is based on a single product rather than a series of units. It launches a new product every one or two weeks and advocates no season.

This means that the brand can avoid the end of season promotion to clear inventory.

The main Elizabeth Suzann is also the way.

Liz Pape, a founder, explained the brand philosophy two years ago, saying: "encourage customers to buy less clothes, but only buy good things."

The fast fashion with huge SKU, new weekly and unscheduled discounts is clearly not suitable for pparent pricing, and the luxury of selling a sense of illusion is unlikely to expose the heavy gold that it smashed on the market and brand packaging.

As for the popular street brands, such as Gosha Rubchinskiy and Vetements, fanatic fans never care about the price of a yellow T-shirt printed with DHL.

Elizabeth Suzann and Everlane, with their "pparent colors", are taking the first step, but it is almost impossible to make them fashionable in fashion.

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