question about stores/sales

Discussion in 'Lifestyle' started by Naturally Baked, Jun 29, 2008.

  1. Naturally Baked

    Naturally Baked Active Member

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    Okay so say you find some jeans that are original 200 bucks, then the store marks it down 50% to 100 dollars....does this mean that if the store sold the jeans for 200 they make 100 dollars in profit? How does it work when stores mark things down significantly?
     
  2. CLOT

    CLOT OT Supporter

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    100% markup from the designer, 100% markup by the retailer
     
  3. dibalicious

    dibalicious sexy crew

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    I'm kinda curious about this too. I see shit that was $700 marked down to like $300, same with other stuff store-wide. I couldn't imagine these stores would be selling at a loss, makes you feel shitty knowing how cheap half this 'premium' stuff is to make. :o
     
  4. levit

    levit buy the ticket, take the ride.

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    Most the time you're paying for the name.

    I work in a clothing store among other things as an Assistant Manager. Our basic tees/tanks for Jr's are 14.95 a piece, and the company pays only 1-2 dollars per piece. Granted they also have the luxury of buying in huge/mass quantity and get economies of scale with that as well, but my point still stands.

    Usually retailers can mark something down up to 75% before seeing a loss, and this includes the cost of shipping/storing the item.
     
  5. Marimekko

    Marimekko wehh

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    sad truth about retail is that almost nothing sells 100% through the season and there's constantly new shit coming in so 75% off means its going for below cost, or below what the store paid for the goods. this is better than stocking goods in inventory which incurs storage costs.

    hence the reason i was able to buy my $300 acne jeans for $70 :o
     
  6. Fubar

    Fubar OT Supporter

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    I work for a manufacturer so I know first hand the markups that can be applied to products. For example, a product that we list a MSRP price of $300.00 actually only costs us $20.00/unit. Of course that doesn't include R&D/Marketing, etc. which is where the huge markup comes from. We may sell that same unit to a reseller for $150.00 (if they buy more, the price in most cases goes lower) and they can in return resell it for whatever they want.

    So the sale prices are most likely still allowing the retailer to make a profit.
     

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