What is the cost of a piece of clothing? This women's brand analysis shows you

Liz Pape, founder and CEO of American womenswear brand Elizabeth Suzann, wrote a 5,000-word blog on the brand's official website. There is a straightforward name, “Money Talk,” which publishes and analyzes his own clothing. Detailed data on pricing, production, and real cost.

Liz Pape started Elizabeth Suzann in 2013, with a minimalist style focused on materials and tailoring, priced between $100 and $300. Elizabeth Suzann uses the consumer-first order re-production model, all production is in-house, and now there are 19 people in the core team.

Liz Pape

They do the same thing as Everlane, the American start-up brand that claims to be out of date for 10 years. It also stands on the opposite side of “fast fashion”, doing “slow classic” clothing, and consuming the cost and production information behind the clothes. Announced. However, compared to Everlane, Elizabeth Suzann analyzed a little deeper, with clear data and charts for various costs and gross margins.

Of course, this is based on the extreme confidence in your products and pricing. Why do you feel that you have to talk about this now? Liz Pape explained in an interview with Racked, “Now this topic is often mentioned in the industry. People will say that many things are too expensive, or they want to know the cost of production behind a piece of things, especially many brands in Everlane. After that, they announced their own pricing and costs, and they started to talk about the topic."

At the end of last year, Elizabeth Suzann published an article saying that the price of some clothing may rise as they transfer more fabrics to local weaving. This matter received some comments that consumers are worried about the price increase. This made Liz Pape feel the need to talk about a company's entire pricing process.

“More importantly, (should be talking about) what this means for the entire company and how the pricing between the brand and the brand is different. We need to consider the bigger picture or what is the cost of production. Trading," Liz said.

In terms of brand pricing, Liz said that traditional pricing generally has several rounds of markups, and the low price will double to create a wholesale price, which is then doubled. All sales channels of Elizabeth Suzann come directly from the official website, thus reducing the cost of the middleman. Liz took a $185 shirt to analyze production costs and interest rates, including material, labor, and wasted production costs, minus 66% of gross profit margins, and about 10% of net profit. And when some products have low gross margins, but they are products they really want, they will balance each other with products with high gross margins.

She also gave us an account, a $10 H&M knit vest, which was worn three times and then dropped, equivalent to $3.33 each time. And her own price of $ 245 pants, she has passed at least 100 times in the past two years, equivalent to wearing $ 2.45 each time.

At the end of the article, Liz thinks that if we buy things to meet the needs and buy clothes that are designed to meet our needs. These needs may be philosophical, ethical, practical, physical, emotional or financial, but certainly not entirely financial, and we will be happier in life. You should spend your money on a company you trust that can represent you and make you comfortable. This requires open and transparent information to determine whether a company is trustworthy.

The picture of the title and the picture from: racked, Elizabeth Suzann