The retail Markup
Do you know what the average markup is on high end clothing? We all know it's a decent chunk, but how much is it really- The Small Business Chron (http://smallbusiness.chron.com/markup-percentage-retail-clothing-80777.html) helps us understand.
The higher end clothing deals with larger dollar figures, so even a 10% spike on the retail side can be a decent increase. As the Small Business Chron states; typically margins are between 55 and 62. What does that mean? Let's say a store buys a shirt wholesale for $100. If you multiply that by 250%-, you end up with a $250 dollar retail price tag- equaling a 60 margin. Another example; the store buys an outerwear piece for $400 wholesale, the retail will range from $1000 to $1200! ouch.
Typically on the production side going to wholesale, there is a 50 margin. Let's say a company produces a shirt for $50, multiply that by 200%- and you get $100. But think about that further, the shirt that took $50 to produce is now on the retail end at $250.
"The retail markup is a pretty stable number, 250%-350% in most circumstances ," says Kentin Waits of WiseBread (.com).
The biggest variable number is production to wholesale. This, is where the brand name takes advantage. You have some companies marking up 200%- but you also have other companies marking up 400%. It might even be the exact same product, but one brand name to another means a few extra dollars in their pocket.
From my knowledge, the biggest markup in the industry is Jo Banks. I believe they spend about $55 for a suit, which then mark up to about $800. Somehow people all over the country fall for their "buy 1 get 4 free" campaign- this boggles my mind. People- you are NOT getting a good deal!!!
Next time you go shopping at Nordy's, Barneys, or any other high end shop- you might have a little more knowledge looking at that price tag...happy shopping!