Joysea
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Actually, there are a lot of people who ARE willing to buy pants for $40-$50; they don't think that's expensive or they just don't care. So those are the people that AE and such are aiming at when they overprice their clothing. |
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saintifying
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Because some people are trendwhores and have to have it before everyone else, therefore AE makes money off of those people |
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Brent Bert
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they outsource to foreign countries for cheap labor.. simple as that |
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iAm notArabbit
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Trust me, they know what they're doing much better than you or me.
If they sell 100 pairs @ $50 they're making $5000
If they sell 200 pairs @ $20 they're making $4000 |
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allforone
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It depends on the store, but many times they overprice the items to the point where even if they discount them, they still turn a profit.
Also, they need to clear out the store for new items, ie higher profit items. |
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jpoc226
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they bought the items for 7-10 bucks from a supplier |
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11dimensions
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Income - Expense = Profit. They buy their merchandise by bulk for very cheap and cell the units separarately for many times the price. the difference in money they get from buying and selling gives them their money |
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Tracy M
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They want to make the highest profit first and people will buy their clothes at the regular price. By reducing the price at the end of the season they make a smaller profit but are not left with end of season merchandise. |
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laylababi3
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take an econ class. |
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Mel W
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Because some people want it NOW, and will buy at the highly inflated prices.
Trust me those companies pay pennies on the dollar for those goods, and still make huge profits when they mark them down 50% or more at the end of a season.
God bless! |
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sophieb
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People buy an item as soon as the collection comes out because they know their size is popular and the buyer doesn't buy a lot of each size, they just buy "some" of each size. So usually it's the unpopular sizes or the overstock or out of season, odd color, flaws in the material, etc. is the reason they go on sale. So if you fit into one of those categories (liking those things) then you will hit it lucky and get the lower price. Many times though if they are a catalog company or put out flyer ads thru the mail then sometimes they have "come-on" ads which the product is not available or maybe they had only 2 of the item and they sold fast, so you end up paying the higher price anyway. A store usually has a high markup from the start, like maybe they bought the item overseas from cheap labor, and then what we call a normal price for an item (because we're used to a certain past lifestyle) well the price in reality is way overpriced, so when it goes on sale they still make some small profit. |
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Ski owl
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the purpose is to get the idiots that waste their money in January for clothing they won't wear until May those same idiots think that all of the stock will be gone by march and the store gets a bigger profit. then you patient smart folks like yourself will sit and snicker that you got a good deal by waiting when you hear one of the money wasters saying "I got these pants for $39 at AF" |
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julvrug
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because at 40 or 50 they only need to sell a few to gain the same profit margin they would at 20. They can afford to put them on sale for 20 because even at that price they will gain a profit on the item. Now when they price it at more than 75% off, they will still be coming out ahead because they can write it off as a business loss on their taxes, and not have to pay for the additional inventory. Now if people would not pay the 40 or 50 for the item, meaning no one will, then they will lower the over all price, but they want to make as much profit from any one given item fast rather then have to wait for more individuals to buy the item. They would rather make 100+ profit from 5 pair than 100+ profit from 20 pair, and will only do so when it is required. |
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bbruin31
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there assholes thats why |
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Karen
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because a lot of people buy them when they are fully priced. Also, the cost to make them are a couple bucks (because fabric in bulk is extremely cheap and they export it to sweatshop)and so they're making at least 40-30 dollars profit per jean. |
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sjessie48
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A LOT of people will buy it not because it's cheap but because it's new. Only when it's no longer new is it only worth $20. |
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Clueless
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Most stores will bring them in selling at really high prices because they know there are lots of people out there (believe it or not) that would never be caught dead buying off sale racks LOL
Also, by March...it's time for stores to get the seasonal stuff out of the store so that the next season clothes can be brought in. |
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land of the free
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either price makes them a profit, it just depends on how much of a profit, and of course they'd like to make the most profit off of those that can afford toshop early in the season and pay the higher price |
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Husker Nation aka Dank1
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Most items have a 300% markup. By the time they mark it down, it will still make them money, and as you say more people will buy them.
They will think wow what a deal I got, I can afford 2, and a shirt and socks... |
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Rebecca
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they have to buy it from the manufacturers at a high price |
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