#Teeextra Fashion LLC And why would she know. Fashion has not been transparent historically, particularly when it comes to money and profits. Rampant discounting has trained us to doubt the price of anything, whether it’s a $2,000 dress or a $200 blouse. We know that if we wait a few weeks or months, it’s going to be marked down. And if it’s so easy for designers to slash those prices, then surely the original number was too high to begin with, right. You’d be a fool not to hold out for the sale. As a result, some retailers are actually increasing their margins to make up for the inevitable 30% or 40% loss, sometimes pushing it as high as 4x—meaning a coat it paid $1,000 for (and may have cost closer to $500 to produce) will begin at $4,000 in the store.
#Teeextra Fashion LLC It’s a tangled web of problems, and it’s particularly damaging for small businesses like Stanley’s. Forget trying to create ethical, sustainable clothes; how do you convince people to pay more for them. Her prices hover in the $350 range, but her customers frequently ask why she can’t go lower. While she used to avoid sales entirely, she’s felt pressured to “give in” to discounts because it’s the only way we know how to shop. Another designer might cut her costs by using cheaper fabrics or cheaper labor, but Stanley is committed to her family-run factory in Delhi, India, and won’t compromise on high-quality, organic fabrics. The only way she could lower her prices would be to take less profit or transition her business to a direct-to-consumer model, eliminating the retail markup. (Given the state of department stores, many of her peers are likely thinking the same thing.)
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