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In the meantime, the best thing she can do is educate her customers about precisely why her new hand-embroidered organic cotton dress costs $550. Stanley openly shared the cost breakdown here: $24 covers the organic cotton and dyes; the intricate handwork comes in at $48, because it took an embroiderer a full day to make the dress; production labor, including sewing, pattern-making, sampling, finishing, and packing, was $48; trims, including the labels, hang tag, and dust bag, were $5; shipping was $8; and duties were $24. Her total cost came to $157, and in order to keep the final price lower, she took just a 1.59x margin, bumping the wholesale price to $250. (This means Stanley would earn $93 in profit when a store orders the dress.) With the typical retail margin of 2.2x, the final price tag on the rack in a boutique is $550.
In the meantime, the best thing she can do is educate her customers about precisely why her new hand-embroidered organic cotton dress costs $550. Stanley openly shared the cost breakdown here: $24 covers the organic cotton and dyes; the intricate handwork comes in at $48, because it took an embroiderer a full day to make the dress; production labor, including sewing, pattern-making, sampling, finishing, and packing, was $48; trims, including the labels, hang tag, and dust bag, were $5; shipping was $8; and duties were $24. Her total cost came to $157, and in order to keep the final price lower, she took just a 1.59x margin, bumping the wholesale price to $250. (This means Stanley would earn $93 in profit when a store orders the dress.) With the typical retail margin of 2.2x, the final price tag on the rack in a boutique is $550.
If you’re of the “buy less, buy better” mentality, it isn’t hard to justify the higher price. Plenty of Stanley’s customers are investment-minded and care about her commitment to ethical, sustainable, small-batch production, but some still need to be convinced that it’s “worth” buying one of her dresses instead of five cheaper versions. Lucette Romy, the founder of The Wylde, an organic label handmade in Bali, has had similar conversations with her customers about the higher price of organic cotton, botanical dyes, and dignified labor. “But it often isn’t enough to change their minds,” she says. So she found another way to get the point across: Every item on her site comes with a cost-per-wear breakdown. Her new organic cotton dress goes for 260 Australian dollars, or $178, but if you wear it 10 times, it’s $18 per wear. By the time you’ve worn it 50 times, it’s under $4. If you intend to keep it for years, as you should, that number would come down to pennies. Suddenly it’s a bargain.
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