Often time’s consumers are shocked by the price of a clothing item. For example, let’s say a consumer finds a basic white V-neck shirt that they like; they look at the price and see that the shirt is priced at $40, consumers will often think the shirt is overpriced because it is a basic item. Consumers need to know that the price they are paying is the retail price. It probably only took $10 for the company to make the shirt, then the price was raised to $20 at wholesale, and last it was raised to $40 at the retail price. Apparel items prices are achieved by the materials their made out of, the trims and applications that are on the item, and by the amount of designing and marketing and transporting it took to make the item. Statistics say that good retail stores such as Gap only make about a 10% profit margin on each item sold. The economy is affected by the price of items. If the retail price is too high for consumers to buy the item then there is a good chance that the consumer will wait for the item to go on sale or look for a similar item elsewhere.
"Why Clothes Cost What They Do – Well Spent." Why Clothes Cost What They Do – Well Spent. N.p., n.d. Web. 09 May 2013.
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