Today I drove up to the LA California Market Center to my showroom to drop off my Fall samples for market. Market started today so I was a little behind the ball. (Oh the joys of fashion and delayed production.) It turns out my timing hiccup actually played in my favor.
I stayed to help hang and display the line (a nice luxury being so close to my LA showroom) and while I was there a store was placing an order for another collection. Once they finished with that line the rep offered to show them another well known line. They store owners kinda hummed sayng they carried the line before and that the price points were a bit high but said to show them a few things anyway. They looked and commented that the items were cute and asked for prices. Then they commented that the items were darling but designed to be layered and really only “darling” when they were layered. They went on to say that one you put the layers together to make an outfit the customer ends up paying over $100 for one outfit and in this economy it just doesn’t make sense.
They are right.
Look I struggle with cost vs profit margin. It’s tough. For most of my items I don’t make the normal “double your cost to get your wholesale price” spread. I often work backwards. I look at what a fair market price is and then try to get my labor and fabric prices down to increase my profit margin. I do this in hopes that stores will pick up the line in this economy and that it sells well for them. If I can get loyal customers now by catering to their needs (designing at price points that fit our current economy) then I know they will be loyal customers when the economy turns around and then I can reintroduce higher price point items.
I encourage you to look at your prices today. Do they fit the current market/economy?