British premium menswear label Private White VC has launched a transparent pricing manifesto, setting out exactly how it calculates the cost of one of its raincoats.
The company said it doesn’t inflate its prices to account for middlemen, distributors or agencies, nor does it add extra margins to bolster profit during ad-hoc promotions or flash Sales. Its approach echoes that of US-based womenswear etailer Everlane which prides itself on its “radical transparency” and sets out its pricing strategy without the traditional mark-ups.
The company said it sources 90% of its raw materials from within a 40 mile radius of its factory in Salford, Manchester. The company’s yarn spinning is done in Dukinfield, cotton weaving in Foulridge, cashmere and wool weaving in Oldham, fabric finishing in Huddersfield and quilting in Bolton.
“We price our garments fairly at 2x - 3x cost, as opposed to the 5x - 7x mark-up that is the norm for most luxury houses,” the Manchester-based company on its website.
The company suggests that a raincoat it sells at a 2x mark-up would cost £495, while a luxury brand working on a 5x mark-up would retail a similar item at £975.
For this item, it sets out:
- Pattern cutting and product development £11.50
- Cloth and linings £63.83
- Hardware and trims £24.20
- Our factory £29.51
- Our people £71.91
- Freight, packaging and labelling £9.50
- Import duties £0.00
- Actual cost £210.45
- RRP £495
Read an interview with Private White VC’s owner James Eden here.