Why Is This Stuff So Expensive?

I see $$ related comments on the forums from time to time. I recently had an email chat with Thanita @ Dirt Rag over this very question. Thought I would post my response for all to see. Might help make sense of things.

Q:
Don't take this question the wrong way, but why are these [women's] knickers so expensive?

A:
Price, price, price!!! That is a tough one. I really wish I could offer my stuff at a lower price, but I can't. Here's why:

(1) The fabric is a technical fabric. Meaning it has technical properties - the material and weave (nylon on the outside and polyester on the inside w/ a little bit of lycra for stretch), the finish (DWR - Durable Water Repellent), and the nap (slightly brushed on the inside). These types of fabrics are expensive! One of the biggest reasons you can buy Levi jeans for $30 is because the denim is super super cheap. The Consoltex fabric is about 4X as expensive as denim. Thankfully you do get a lot of features with it. I'm into features as they relate to what Hypnotic is trying to do - provide clothes that look good on and off the bike, all the while functioning extremely well in a number of conditions.

(2) Everything is sewn in Oakland, CA. Not in China, Viet Nam, India, or wherever. This is partly because I'm a small fry in the garment industry and I don't have enough volume to go overseas. But I also feel extremely uncomfortable going outside the US. There are great contractors elsewhere, with highly skilled labor, good prices, etc. But I think they are few and far between. I think there's a lot of human rights abuse, poor wages, poor working conditions, etc. Hypnotic doesn't have the resources (like Patagonia - someone big who I think does care where their products are made) to suss out what's good and bad beyond my backyard of the bay area. I visit my contractor down there regularly, I know what the scene is like, I can keep an eye on production (quality control), and take in a show and eat kick ass Thai food while I'm down there. American contract houses are hurting - going out of business left and right. I'm supporting a dying breed one knicker at a time.

And there’s a lot of construction going on there. A lot of stitch lines. A lot of panels coming together. Sew times are long. And again, due to minimums I pay for it. If I could do more at a shot then the price would come down. It's an economy of scale issue.

(3) Lastly, in an effort to support another dying breed - the specialty bicycle retailer, I offer very good margins at retail. Beyond that I make enough to cover cost of goods (materials + sewing) and then some. I still don't make enough money to do this full-time. I have another job that puts food on the table. It is a labor of love. I’m trying to put out a product that “does the right thing” every step of the way. Hard to do, but I sleep well at night.

That's the truth to the whole thing. Hopefully as sales increase a lot of these things will change for the better. But that's the way it is for now.

Cranky on 07.18.05 @ 04:16 PM PST [link]