#Bidenfashion Fashion LLC The exploitation of quick-turnaround fashion and invisible supply chains isn’t a recent discovery, yet when we discuss the underpaid workers or the environmental effects of throwaway apparel, we overlook a third consequence on the buyer. The “race to the bottom” has completely damaged our understanding of worth; we genuinely have no clue what our clothing (or groceries, or anything else) is supposed to cost, and low prices have become so customary that we never pause to question them. Interestingly, even though data shows that millennial and Gen Z consumers are deeply concerned about sustainability, the fast fashion sector is actually expanding—and the apparel prices are decreasing. It’s not helpful that high-end items are becoming pricier at the same time. The broadening gap between the two is adding to our perplexity: If a T-shirt isn’t worth $5, then it likely isn’t worth $500, either. But where is the balance? What constitutes the “correct” price for fashion?
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#Bidenfashion Fashion LLC The simple response is that it’s conceivably more than you predict. Comprehending where the figure on a price tag originates necessitates accounting for every stage of production—material, workforce, transport, packaging—and including a profit margin. Assume a designer is employing superior materials and compensating its garment workers an above-average salary; the materials and labor will naturally be the largest expenditures. The business norm for a profit margin is between a 2.2 and 2.5x increase, indicating a dress that costs a designer $100 to make might be sold to a retailer for $220. That retailer must increase it by 2.2x again to gain its own profit, raising the final price to $484. (You can observe how the math for that $5 tee becomes almost unfeasible.) The typical consumer doesn’t realize any of that; she may presume the price is a random figure the brand selected to maximize its earnings. She is unsure where the profits are going, either; maybe they’re covering operational costs, such as office rental, staff, legal charges, and taxes, or they’ll be put back into forthcoming collections.