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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.
lmamammal-
all on point here
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I don't think the point was about profit and the levels of, it was whether their garments are of good value. Which isn't always a product of their cost to market, manufacture and sell.
I agree that the market for people with a bit of money who wanted to look less shit on their bikes was poorly served until Motram's army stole cycling ;)
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the store mark them up usually by 2.7 or 2.8
I work for a full-price luxury retailer who would love to get margins like that! Unless you're including VAT?
Glws
Howard
Dramatic_Hammer
ok, then here's a £475 printed cotton t-shirt
http://www.matchesfashion.com/products/Givenchy-Cuban-fit-Jesus-print-cotton-T-shirt-1040921
I'm sure you get my drift