Coach Markup?

Pursanista · Jun 23rd, 2008, 07:07 PM

Does anyone know what the markup is for retail Coach pricing? Is it a different percentage for different items?

AnneT · Jun 23rd, 2008, 07:41 PM

I think that is kept as close to the vest as they can possibly keep it. I'd imagine cost of making the bag (labor, materials, transport) compared to price on the tag is at least 300-500% but that doesn't take into account all the other costs of operating a business.

The LV folks have a cool thread where some people with more financial acumen than I have parsed out some estimates:
For those who are wondering how much of a *markup* is in a LV bag (ro)

Although I've also seen some reporters put the markup on the standard canvas LV bags at 1300%, but without a cited source.

athena2k1 · Jun 23rd, 2008, 08:43 PM

Well it certainly isn't Coach, but I worked for a shoe manufacturer and distributor - the shoes they sold cost them aprox $3 to make (in China, in a manufacturing plant that they owned), they were sold at about $35-$40 wholesale to the retailers, and the retailers usually made a 100% markup on top of that to about $60-$80 (or even more on boots) - so I am pretty bad with math, but that's a huge markup from cost of manufacture to final sale.

Pursanista · Jun 24th, 2008, 12:10 AM

Thanks for your responses, AnneT and athena2k1. No matter how much profit Coach makes, I still think their products are a great value. When I look at the workmanship in a charm or a key fob, I don't think $38 is overpriced. It actually kind of blows my mind when I see the charms marked down to 9.99 in an outlet store.

coachfreak · Jun 24th, 2008, 03:40 AM

If I had my guess it would be 250-300% mark-up.

Suzzeee · Jun 24th, 2008, 03:58 AM

Standard markups on accessories used to be in the 400% range, but these days with hot brands, I'm sure it's all over the place percentage wise.

coachfreak · Jun 24th, 2008, 04:37 AM

Quote:

Originally Posted by Suzzeee

Standard markups on accessories used to be in the 400% range, but these days with hot brands, I'm sure it's all over the place percentage wise.

That I believe, do you think it is the same for handbags?

Ejean1979 · Jun 24th, 2008, 04:35 PM

When I worked at Coach, during the first introduction of the Hamptons Collection around 2000 (maybe earlier than that).... The Hamptons lunchtote cost around $3 and would be marked up to $198....

fieldsinspring · Jun 24th, 2008, 04:47 PM

Too much imo

athena2k1 · Jun 24th, 2008, 05:11 PM

Quote:

Originally Posted by Ejean1979

When I worked at Coach, during the first introduction of the Hamptons Collection around 2000 (maybe earlier than that).... The Hamptons lunchtote cost around $3 and would be marked up to $198....

Geeze Louise, seriously??

I would have thought it at least would cost like $20-$40 to make a purse, especially when they were american made. Were they still USA made in 2000?

Jkm · Jun 24th, 2008, 05:39 PM

Quote:

Originally Posted by Ejean1979

When I worked at Coach, during the first introduction of the Hamptons Collection around 2000 (maybe earlier than that).... The Hamptons lunchtote cost around $3 and would be marked up to $198....

Suzzeee · Jun 24th, 2008, 05:39 PM

Quote:

Originally Posted by coachfreak

That I believe, do you think it is the same for handbags?

With handbag brands that have recently shot up dramatically in price, it's probably much more. A few years ago you could easily get a large leather Coach bag for under $500 - my limited edition patchwork suede Lg. Duffle was $348 in 2002 - that was the largest size and Lt. Ed. - now, the Coach bags that I'm attracted to are double and triple that price - things have gone up, but not that much and their labor costs have most likely gone down with the move to outside the US production.

Charlie · Jun 24th, 2008, 11:10 PM

Quote:

Originally Posted by Ejean1979

When I worked at Coach, during the first introduction of the Hamptons Collection around 2000 (maybe earlier than that).... The Hamptons lunchtote cost around $3 and would be marked up to $198....

*faints*

Jun 23rd, 2008, 07:07 PM	#1
Pursanista Ollie & Bella Boo Location: Colorado	Coach Markup? Does anyone know what the markup is for retail Coach pricing? Is it a different percentage for different items?

Jun 24th, 2008, 03:40 AM	#5
coachfreak MUST HAVE TATTERSALL Location: Anywhere there is Coach :)	If I had my guess it would be 250-300% mark-up. __________________ Card carrying member of Coachaholics Anonymous Have you seen my collection??? http://forum.purseblog.com/your-bag-...on-202157.html Desperately trying to be good

Jun 24th, 2008, 03:58 AM	#6
Suzzeee Proud Belenista Location: California	Standard markups on accessories used to be in the 400% range, but these days with hot brands, I'm sure it's all over the place percentage wise. __________________ Wish List Sapin Bal Day, BE's new Hobo 2 in Navy, BE TMA in Petrol (ordered), RM Studded Devote Tote in Almond (on pre-order), Ignes Francis in Raspberry (ordered)

Jun 24th, 2008, 04:47 PM	#9
fieldsinspring keepin' it real! :) Location: Where the Sun Is!	Too much imo __________________ Don't Give up what you want MOST for what you want NOW

Jun 23rd, 2008, 07:41 PM	#2
AnneT Member Location: Madison, WI	I think that is kept as close to the vest as they can possibly keep it. I'd imagine cost of making the bag (labor, materials, transport) compared to price on the tag is at least 300-500% but that doesn't take into account all the other costs of operating a business. The LV folks have a cool thread where some people with more financial acumen than I have parsed out some estimates: For those who are wondering how much of a markup is in a LV bag (ro) Although I've also seen some reporters put the markup on the standard canvas LV bags at 1300%, but without a cited source.

Jun 23rd, 2008, 08:43 PM	#3
athena2k1 Member Location: Huntington Beach, CA	Well it certainly isn't Coach, but I worked for a shoe manufacturer and distributor - the shoes they sold cost them aprox $3 to make (in China, in a manufacturing plant that they owned), they were sold at about $35-$40 wholesale to the retailers, and the retailers usually made a 100% markup on top of that to about $60-$80 (or even more on boots) - so I am pretty bad with math, but that's a huge markup from cost of manufacture to final sale.

Jun 24th, 2008, 12:10 AM	#4
Pursanista Ollie & Bella Boo Location: Colorado	Thanks for your responses, AnneT and athena2k1. No matter how much profit Coach makes, I still think their products are a great value. When I look at the workmanship in a charm or a key fob, I don't think $38 is overpriced. It actually kind of blows my mind when I see the charms marked down to 9.99 in an outlet store.

Jun 24th, 2008, 04:35 PM	#8
Ejean1979 Member Location: San Francisco! :)	When I worked at Coach, during the first introduction of the Hamptons Collection around 2000 (maybe earlier than that).... The Hamptons lunchtote cost around $3 and would be marked up to $198....