3 ms·

Despite all the effort involved, when I look up online, most of the $225 jeans is markup. One website mentioned for a $200 pairs of jeans, $21 for the materials

by pkaye 11y ago

Despite all the effort involved, when I look up online, most of the $225 jeans is markup. One website mentioned for a $200 pairs of jeans, $21 for the materials, $6 for labor and $8 for for overseas factory profit. So really a lot of it is markup, middlemen, branding, etc. Yet is is convenient to blame it on the high cost of labor to manufacturer it.

chris_va 11y ago
Keep in mind that the vast majority of clothing is not sold at retail prices (and some of it is not sold ever). It depends on the brand, but maybe %20 is a good ballpark. Also, there are development costs, etc. Finally, the manufacturer isn't seeing $200. They only get the wholesale price (if they are lucky), or a percentage after the sale. With factories often needing payment upfront, and the brand not making money until after a sale occurs (if ever), there is a lot of risk that needs to be priced into the product.
zer00eyz 11y ago
IN the case of the video linked it is a one man shop, in Oakland CA USA. 20$ in material is probably right on the money. other costs are probably 20$ (power, equipment upkeep)... The rest is pay for himself. It probably takes 6-10 hours to build a pair of jeans at the level he is doing it at, and that leaves him making a reasonable hourly rate
tiatia 11y ago
"most of the $225 jeans is markup." I don't like your wording here. While you don't say it is "profit", it seems to suggest it. How a about costs for the salesperson in the US? Rent for the store? Branding and marketing costs may be huge. I recently looked into hand made automatic watches. The main difference between the major brands and smaller (EU based) unknown brands seems to be marketing. You can't pick up a life style magazine of visit an airport without advertisement for watches. This costs money.

3 ms·

Despite all the effort involved, when I look up online, most of the $225 jeans is markup. One website mentioned for a $200 pairs of jeans, $21 for the materials

by pkaye 11y ago

chris_va 11y ago
Keep in mind that the vast majority of clothing is not sold at retail prices (and some of it is not sold ever). It depends on the brand, but maybe %20 is a good ballpark. Also, there are development costs, etc. Finally, the manufacturer isn't seeing $200. They only get the wholesale price (if they are lucky), or a percentage after the sale. With factories often needing payment upfront, and the brand not making money until after a sale occurs (if ever), there is a lot of risk that needs to be priced into the product.
zer00eyz 11y ago
IN the case of the video linked it is a one man shop, in Oakland CA USA. 20$ in material is probably right on the money. other costs are probably 20$ (power, equipment upkeep)... The rest is pay for himself. It probably takes 6-10 hours to build a pair of jeans at the level he is doing it at, and that leaves him making a reasonable hourly rate
tiatia 11y ago
"most of the $225 jeans is markup." I don't like your wording here. While you don't say it is "profit", it seems to suggest it. How a about costs for the salesperson in the US? Rent for the store? Branding and marketing costs may be huge. I recently looked into hand made automatic watches. The main difference between the major brands and smaller (EU based) unknown brands seems to be marketing. You can't pick up a life style magazine of visit an airport without advertisement for watches. This costs money.