It likely does factor in the labor and transportation and everything else. No, there is no possible way anyone could make ONE Carly for $8, but when you take the amount they spend on the materials, overhead, labor, transportation, advertising and everything else and split it up over the millions of bags produced, the per unit costs equal out to incredibly small numbers.
And it isn't as though the OP has posted her full name, address and working location! Perhaps she is disseminating classified information, but it only makes us, as consumers, stronger to be better informed. We like to think that the items we pay hundreds for are worth more than the average bag, but we pay more for the name than we think. Nothing wrong with that, as long as we are aware of what we are doing and why.
Of course this stuff is marked up big time- they know we will buy it- and tons of it... that is why I try not to spend too much on Coach because the money can be invested or spent a little more wisely in my opinion although I do occasionaly love a new bag.
you'd think at $8 they'd get the fraying thing right.
Thanks for this fact. It helps with my future decision making
Disclosing this type of information can be very damaging to a company.
How could it cost them only $8 for the leather, metal, etc, labor?
I for one was just cautioning her as leaking information about production costs is almost always verboten. Disclosing this type of information can be very damaging to a company.
Also, most companies have substantial G&A costs such as administrative salaries and advertising that far outweigh the price of producing their products.
Well now if they sell 5 million Carlys and make a basic profit off each bag of $295.00...ah you do the math there. I believe that well over pays any admin/employee costs they. And we are just talking about Carlys...factor in all the OTHER bags they are selling and making this same level of profit off and I won't be crying any tears for Coach's "admin costs". Please don't try and justify the rip off.
I just don't understand why anyone except Coach as a company would be upset about this information being better known. There are tell-all books from countless employees of countless different industries who have exposed everything from unsafe food handling to the conditions in minimum wage jobs to child labor. Upton Sinclair exposed food packagers for what they were, which led to reform.
Not that posting a snippet of information on the internet is as lofty as writing an expose of an industry, but still, this is valuable information to a consumer and is only potentially damaging to the industry or business itself. Unless a person works in the upper eschelons of Coach, I still fail to see why this information would be upsetting.