Designer Sunglasses Pricing

Discussion in 'Lifestyle' started by Dio Seijuro, May 20, 2008.

  1. Dio Seijuro

    Dio Seijuro New Member

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    Here is a question I've been having. Why are designer sunglasses marked up so much more than the cheap sunglasses (in terms of percentage) like UV400? Most other apparels (jeans, sweaters, shoes) don't see this big of a discrepancy.

    A pair of UV400 is $10, a pair of Ray Bans is $100, and a pair of Gucci is $350. Where's all that money going in each case?
     
  2. Yardsale

    Yardsale OT Supporter

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    they all have markups, this isn't new to fashion nor any sort of high-end luxury branding. maybe your exposure to it is limited.
     
  3. Dio Seijuro

    Dio Seijuro New Member

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    I know they all have markups. I am familiar with markups of various labels for various apparels. This is precisely why I am tickled to ask this question, because I don't know how they come up with these numbers (relative to each other) back in the HQ.

    More relevant to this question though is sunglasses. People who are not into fashion still wear jeans that cost about $40, while those who love designer denim would usually spend $250 but often not more. About 6X difference. Cheap dress shoes still cost $70, and very nice shoes go for $450 (Gucci) to $900 (John Lobb), and few people go higher than that even if into fashion. About 12X difference. But sunglasses, the difference between cheap sunglasses ($10) and most designer sunglasses ($200 and up) is huge. 20X difference easily. And this is interesting to me.
     
  4. kilian

    kilian You've got quite a treasure there in that Horadric OT Supporter

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    If a shoe doesn't function well or is flimsy on a base level it will break easily and die, so many people don't buy $5 shoes, same goes for jeans etc.

    However with sunglasses, they're a non-exposure sort of item so people dont mind them being flimsy.

    If you sit on them, just get another $5-10 pair.
     
  5. Dio Seijuro

    Dio Seijuro New Member

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    Good point. Now, do you think the cheap sunglasses block UV just as well though. Meaning that their cheapness mainly comes from cheap styling and construction and material, but the core function is fine.
     
  6. kilian

    kilian You've got quite a treasure there in that Horadric OT Supporter

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    I think that like all designer items, the core function may be improved slightly or even largely, but the amount it is improved is not directly correlated to the markup.
     
  7. CLOT

    CLOT OT Supporter

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    i paid 600 for some cartier aviators in seoul, worst purchase ever :o
     
  8. Baited

    Baited Fur Ballin OT Supporter

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    :hsugh:

    designer label= high price for everything.
    obviously all the money is going into the name and sometimes limited quantity for sunglasses.

    wtf did you expect?
     
  9. Dio Seijuro

    Dio Seijuro New Member

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    Well, I was hoping to learn something I don't know. How the markups are actually determined for various types of apparels. Some of you just keep saying designers items will be more expensive. Well, I already know that, but my curiosity doesn't end there. :dunno:

    I can really understand where the money is going in a pair of $1000 Italian bench made shoes compared to a pair of $80 Kenneth Cole. But I have a harder time understanding why cheap sunglasses can be as cheap as $10 and still be perfectly functional. I mean, okay Cartier I can see why it's expensive, because the frames are made of high grade material and you might have jewelry on it. But a pair of Tom Ford at @ $350 is 30 times more expensive than ye old UV400. Kilian provided a pretty good answer I thought, but I was hoping somebody has more insider insight on this.
     
  10. bdiddy

    bdiddy New Member

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    High end labels have to charge more to pay for their advertising.
     
  11. Baited

    Baited Fur Ballin OT Supporter

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    .

    I thought that was a given though, models aren't cheap

    Gisele made $35mil in a year...
     
  12. bdiddy

    bdiddy New Member

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    It is a given, but Dio wont accept the obvious answer.
     
  13. Dio Seijuro

    Dio Seijuro New Member

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    You guys are still not getting it. I told you I know markups exist. But when you say "given", it's not helping me understanding, for example, how much markup on Gucci sunglasses goes to the design, how much goes to the superior constructions, how much goes to the advertising, and how much goes to exclusivity/name. Everyone keeps giving me one sentence answers that we all know already. I am looking for insider insights.
     
  14. Baited

    Baited Fur Ballin OT Supporter

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    :ugh:
    maybe you should ask someone that works at fucking gucci then
     
  15. Dio Seijuro

    Dio Seijuro New Member

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    I thought that some people on the Style Lab would know this sort of thing. Not specific figures, but more specific than one sentence answers on the business side of fashion retail. :dunno:
     
  16. Seditionist

    Seditionist wandering star

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    Here is your answer:

    On a $300 pair of sunglasses, it's quite possible that half of that is the wholesale cost ($110-150 wholesale from vendor). Now less than half of that is the production cost ($10-50 to make). There are a lot of variables such as how exclusive/limited the item is, and what kind of materials go into the product, how DIFFICULT it is to make also must be factored into cost. A lot of designer goods are also from a different country, and vendors never pay for their own shipping, which can also get expensive from a retailers stand point.

    So usually, vendors charge about 2X production costs, and retailers charge 2X wholesale. Note that I said "usually." Vendors can mark up their goods way over 2X if they see fit, and sometimes its an increase of about 30% in order to *gasp* make money, while also maintaining a luxury status. Boutiques and department stores can charge 2.1X + up to whatever they please also. At my store, a rep told us we actually had to charge MORE for the sunglasses we carry from them.
     
  17. Dio Seijuro

    Dio Seijuro New Member

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    Cool. That's very helpful. Thanks.
     
  18. Naturally Baked

    Naturally Baked Active Member

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    same reason your american eagle belt was $20 dollars, and my D&G belt was $275 :o
     
  19. auveeb

    auveeb DATS CUTE

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    Homosexuality has nothing to do with this thread.
     
  20. Naturally Baked

    Naturally Baked Active Member

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    it has everything to do with this thread :greddy:
     
  21. Dio Seijuro

    Dio Seijuro New Member

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    I can see why some of you are not patient about this thread, because I am not asking anything about styles, I am just interested in the business side of things here. But it would help if you can provide more than a one sentence answer like Seditionist has.
     
  22. Naturally Baked

    Naturally Baked Active Member

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    I am impatient because your question is kind of dumb really. Think about it, people pay higher prices for clothes for status, because they like to, or for whatever reason they choose they DO pay for the upscale brands. If a designers demographic is upscale clothing for wealthy people (or people living beyond their means) they are going to price things up so that your average shopper would not buy their clothing, therefore giving their clothing a higher status and rarity not usually found among other brands.

    I will say this though, I can tell a difference between the quality of fabrics, and craftsmanship in upscale brands.
     
  23. Dio Seijuro

    Dio Seijuro New Member

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    I already knew everything you just said here before I came to post this thread. Like I said, I was hoping to find surprisingly detailed insider insight. Guess you are not the person to get this kind of information from.
     
  24. Naturally Baked

    Naturally Baked Active Member

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    You guessed it, Designer brands are so much more because they are all secretly funding a designer only colony on mars. Why else would Gucci sunglasses be $350? Only explanation is the rising gas prices for their space shuttles, to fill that void they raise their prices. It has absolutely nothing to do with simple business tactics and its all just a huge conspiracy....:ugh:
     
  25. Dio Seijuro

    Dio Seijuro New Member

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    No no no. See what I posted earlier. I am more interested in generally what percentage of the List Price goes to what where. Certainly a chunk goes to status, but how big of a chunk. If you know for sure that this is not the kind of information that anybody can accurately provide, that's fine. Just tell me so. Otherwise say you really don't know. Telling me it's stupid to be curious doesn't make you look all that smart either.
     

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