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What are designer brands doing to justify these prices?

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  • Post last modified:July 22, 2024

We have all seen those crazy prices in designer stores like $700 for a plain tee shirt or $50,000 for a bag without any particular design. The real question is: Is there any way to justify any of these prices and if so where could I find this type of information? Well, in this article I am going to try my best to explain the price of these brands.

Manufacturing cost

These designer brands never claimed that their production costs were high and anybody could make the assumption that this is not the reason why the prices are this high. Let’s take, for example, a classic tee shirt that is going to cost you maybe $500 to $600 in-store, well it’s probably going to cost them less than $100 to make it in factory production. But if the item is handmade then we are talking a whole other story because only a handful of people are qualified to make this quality of a tee shirt and they will need to pay these workers a very high hourly rate.

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Production Limits

If a brand like, for example, Louis Vuitton makes a $1200 pair of pants, it’s really not in their favor to produce a lot of this article because they mostly work by season or if not a lot of people buy them, they are going to need to throw it away or put it on sale and we all know that these high fashion brands hate sales. So now that we know that they are not in the position to produce too much of an item, this is definitely going to affect the production cost because the less you produce, the more it costs. It’s the bulk buy law in every factory.

Design Costs

The people creating the design on these items are very talented so with great talent come great salaries. The designing cost behind every single item is definitely significant and we need to take that into consideration when we are talking about items that are not massively produced since there are a lot fewer of them that are sold. Those $500 to $15,000 items are also used in most cases to be like a foundation for the real designer items which are going to be shown on the runway or are going to be selling for tens and tens of thousands of dollars.

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Brand prestige and reputation

We all know how hard building a company from scratch is. Well, building a clothing brand is as hard or even maybe harder. People need to have faith in the product you are selling, they need to feel like they are a part of a group, of an organization, but finally, they need to feel like what they are wearing doesn’t mean nothing and they can have a little bit of recognition for touching a part of the brand. All those things are very hard to implement into a clothing brand and that’s why we definitely need to take that into consideration when we see that a tee shirt is priced at $700. It’s not just about the product, it’s also about all the work that has been done backstage, all the company building that’s going to give you a good feeling when you wear their stuff. A company like Dior or Louis Vuitton is probably never going to have any competitor at their actual level, they are just too big, but it was very hard for them to reach that level and get the ability to sell $700 tee shirts.

In conclusion, you should really not think that you are getting scammed when you buy designer items since you need to look at more than just the production cost. It’s always going to be a bigger scene and you’ve got to take into consideration all the hard work that’s been done behind every single product, every single season, and every single collection. But rest assured that when you are buying designer, you are getting the finest quality of clothing, the finest detailing, and be sure that you are going to be able to feel like you are a part of a very reputable group.