IT'S TIME TO GET REAL

Our clothes are affordable because we don’t mark them up to traditional retail prices. We’d never want to price people out of making a difference. Image by Kurt Bingham 

04.02.2017

Pricing Transparency
Courtney Holm

Let’s be candid, shall we? I want to chat pricing, because being the founder I can do that kind of thing, right?

Back in the early A.BCH research days, I heard loud and clear that “eco” (yuck) fashion and “locally made” (yum) fashion was often just too expensive. Outta reach. Not happening on this budget. However, it seems a lot of people do care about fashion supply chain issues and know that exploitative labour is alive and well in the 21st century. But only to a certain (price) point. So way back in 2016 I decided that I needed to make Sustainable Attainable. What a catch phrase. But before we go on, one thing I must explain is the traditional retailer/ high street brands/ fast fashion markup. Ready?

GARMENT COST x 2.2 = WHOLESALE MARKUP x 2.2 = RETAIL MARKUP (minimum- sometimes that last markup is more like 7.7)

Now that is super simplified. I know- there is a lot to cover besides the cost of making the product and the raw materials. There are also business overheads, labour, paying the website guy etc. Many brands also wholesale their products to other retailers. So that's usually the reason for that extra retail markup, as stores have their own bills to pay too. If you're still with me, thank-you! Let's keep on this. Because, then there's the real reason all people start a business: To. Make. Profit. I believe in making profit, so I can stand on my own two feet and make a real difference. Just want to put that out there!

Enter A.BCH. We do things in our own special way and we say, stuff the retail markup! Just because we'd like to be profitable doesn't mean we are greedy. To do this, we sell direct to our customers, skipping the middle man of retail. This way we can make sure everything is good and right (and I can continue being a control freak).

I have been adamant from the start, that A.BCH would not markup more than it had to, so that we can, here it is again, make Sustainable Attainable! Gosh, that's good! Our costs of manufacturing in Australia and organic raw materials are WAY higher than the average Joe's, and that's because we source it right. This is our way of giving the power back to you, so you can truly WEAR YOUR VALUES and not go bankrupt while doing so. Ok! So whatever, show me how this works.

Let’s use our first ever product as an example, A.01. That sexy, smooth organic cotton tee. Oh God, it's good - if you haven't seen it head to A.01 and drool.

Fabric
$8.27
Components
$1.28
Cut, Make, Trim
$12.50
Delivery
$0.2
Total Cost
$22.25

Traditional Retail
$120

Our Price
$50+ GST= $55

Wait, what?! Yes, it's like halving the price! By eliminating the retail markup and selling direct to you, good people, discounting becomes unnecessary. I'll do a whole seperate blog post on discounts and fast fashion another day. Let's just say, discount "culture" has messed with our heads and expectation of how much things really cost. You can buy it for what it's worth and what is fair, now, tomorrow and next season too.


Got more questions? Ask me at hello@abch.world