The comma threw me off. But yeah, clothing has a pretty high mark up. So do fountain drinks, I think it cost fast food places like .10 to fill up an xlarge cup of Pepsi that you paid 3.25 for. It's all about what people are willing to pay.
There might only be $.10 of soda in the cup but there are overhead costs and labor costs and and shipping costs and insurance and advertising costs included in there.
Right. The .60 shirt probably doesn't include every cost that goes into it... wait. What if this isn't about the shirt? What if it's about the sign? What if the sign cost .60 and someone bought it for $50? This changes everything.
Sure, there's a huge disparity in what they get paid versus what it is sold for... but there is an absolutely huge juggernaut of a chain of supply to get it to you in the store and each step of the way needs to be paid:
• First, a buyer negotiates a purchase of a design or line from a fashion designer.
• The buyer shops distributors (stores) to sell it and wholesale cost, markup and retail price are settled on.
• The buyer sources a factory best suited for the design and a reasonable profit.
(Keep in mind all of this requires a fair bit of travel, often international.)
• A second designer works out sizing.
• The manufacturer sources materials for the item which has all its own logistics for growers, manufacturers, weavers, ect.
• They make the garment, which requires overhead of a building, heat, light, machines, ect.
• Warehouse, ship and pay export tax.
• Ship overseas, import tax, warehousing and distribution.
• More warehousing and distribution.
• It finally reaches the store where guess what? More warehousing.
• The store requires the overhead of heating lighting and their own equipment and employees.
• They sell it to you and you go home.
The seamstress/tailor is only one stop in a chain that in my abbreviated summary is eleven points long.
Every step gets markup because every step turns a profit. By the time it gets to the store, their margin is probably only a couple percent.
It appears like a great deal for that worker, if you weren't aware of disparity and mark ups towards the seller. It would appear the worker could make up to 83x more than it took to make the dress, but sadly no.
• First, a buyer negotiates a purchase of a design or line from a fashion designer.
• The buyer shops distributors (stores) to sell it and wholesale cost, markup and retail price are settled on.
• The buyer sources a factory best suited for the design and a reasonable profit.
(Keep in mind all of this requires a fair bit of travel, often international.)
• A second designer works out sizing.
• The manufacturer sources materials for the item which has all its own logistics for growers, manufacturers, weavers, ect.
• They make the garment, which requires overhead of a building, heat, light, machines, ect.
• Warehouse, ship and pay export tax.
• Ship overseas, import tax, warehousing and distribution.
• More warehousing and distribution.
• The store requires the overhead of heating lighting and their own equipment and employees.
• They sell it to you and you go home.
The seamstress/tailor is only one stop in a chain that in my abbreviated summary is eleven points long.
Every step gets markup because every step turns a profit. By the time it gets to the store, their margin is probably only a couple percent.
Like, everywhere I go fabric is exspensive as hell