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Fashion Marketing by Caroline Le Bon

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CHAPTER 4

Overseeing Cost and Price in Fashion Marketing

Pricing fashion apparel is a crucial strategic tool for fashion companies. Fashion does not require a high retail price or a price below average; rather, it depends on the brands’ and retailers’ positioning. Before choosing their retail price strategy though, fashion managers must undertake an extensive process to determine the costs to manufacture their products.

Creating Fashion Products and Controlling the Costs

Fashion companies evaluate the differences between their costs and their prices very carefully, particularly because of the short life cycles of their products. The retail price must be set right as soon as the collection launches, to maximize profits. The short life cycle also ...

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