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  • true they can decide whatever they want,
    but it's just dwr sprayed polyester fabric, nothing like high-end leather.

  • These garments are very expensive because the store mark them up usually by 2.7 or 2.8. The brand then has to sell directly to consumer (from their own store or online) at the same price otherwise they undercut their client and lose their wholesale business.

    Rapha don't have a wholesale business model so these examples are technically flawed.

    I don't know where Rapha manufacture their garments, but it is likely a short sleeve shadow jersey costs around £30-40 to produce up to the point at which it arrives in the UK warehouse so the mark up is 5.5 (£40). This mark up will be larger for the items they sell a higher volume of. Excluding costs such as marketing (which is why many believe this level of quality is 'good value') they have operating profit of around twice that of the kind of store used in your example.

    Definitely shows the benefits of entering a market where potential customers have deep pockets and the competition is weak.

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