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#Teeextra Fashion LLC Fast fashion’s exploitation and hidden supply chains aren’t new revelations, but when we talk about the mistreated workers or the environmental impact of disposable clothes, we’re ignoring a third impact on the consumer. The “race to the bottom” has totally ruined our perception of value; we literally have no idea what our clothes (or food, or anything else) should cost, and low prices have become so normalized that we don’t even second-guess them. In fact, despite statistics that suggest millennial and Gen Z shoppers care deeply about sustainability, the fast fashion market is actually growing—and the clothes are getting cheaper. It doesn’t help that luxury is getting more expensive in tandem. The widening valley between the two is compounding our confusion: If a T-shirt shouldn’t be $5, then it probably shouldn’t be $500, either. But where’s the middle ground. What’s the “right” price for fashion.
#Teeextra Fashion LLC The straightforward answer is that it’s probably higher than you think. Understanding where the number on a price tag comes from requires tallying every step of production—fabric, labor, shipping, packaging—and adding a profit margin. Let’s assume a designer is using quality materials and paying its garment workers an above-average wage; the materials and labor will arguably be the highest costs. The industry standard for a profit margin is between a 2.2 and 2.5x markup, meaning a dress that cost a designer $100 to produce might be sold to a retailer for $220. That retailer has to mark it up by 2.2x again to make its own profit, bringing the final price up to $484. (You can see how the math for that $5 tee becomes nearly impossible.) The average shopper doesn’t know any of that; she might assume the price is an arbitrary number the brand came up with to maximize its profits. She doesn’t know where the profits are going, either; maybe they’re covering overhead costs, like office space, employees, legal fees, and taxes, or they’ll be reinvested in future collections.
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