The Telfar brand launches a new way of pricing, rhyming luxury with inclusiveness

Even without living in New York City, it’s getting hard not to notice the Telfar phenomenon, both the faux leather handbag dubbed “Bushwick’s Birkin” (and now priced between $191 and $322 depending on size) turns out to be unavoidable. Its creator, Telfar Clemens, who has already won the CFDA/Vogue Fashion Fund 2017, the CFDA American Accessories 2019 and the CFDA American Accessories 2020, is back in the news thanks to his new dynamic pricing system.

The sooner Telfar clothes run out, the cheaper they will be

Instead of offering clothes at a fixed price, the brand founded in 2005 now wants to let its customers decide their monetary value. Thanks to a new tool prices which will be launched at the same time as the brand’s latest collection goes online, customers will be able to discover the fluctuating prices live, depending on the interest shown in them. The more parts that are desired, the less expensive they will be. A radical way of establishing itself as popular, inclusive, even within the luxury sector renowned for its exclusivity, not to mention its exclusive nature.

How does this operation called “Telfar Live” actually work? The explanation is already on the brand’s eshop. When the collection is released, it will initially be priced at ” wholesale (i.e. the wholesale or business-to-business price, which is often 50% lower than the store price paid by individuals, known as the retail price), and the price will increase over time (about a cent every 20 minutes ) until the expected price for the ” see detail (i.e. the price expected for individual customers, and not that for companies) or become worn out. The price at which it sells out will become the final price of the item once it becomes available again. It’s like sales, but in reverse : the sooner you buy it, the less it costs.

For example, if Telfar pants were to sell for $200 wholesaleand price 400 € see detailwill initially be offered at €200 to the general public and will increase by the second until it becomes worn out. And if the out of stock is reached starting from €205, this will then become the shop price of the item, once it is back in stock (what is called restocking).

Operation Telfar Live shows the absurdity of the traditional fashion pricing system

The Telfar Live operation therefore completely overturns the notions of value and rarity as they are conceived in fashion, especially in luxury. While the big houses are used to charging a high price for their customers to assert a very high-end positioning and provide a feeling of exclusivity (which literally excludes most people who do not have the ways to buy a 4-figure bag , let alone 5), Telfar goes against the grain. Testing a product’s popularity while stocks last also allows the brand to reorder from its suppliers by negotiating a more attractive price and passing the savings on to its customers, rather than increasing its margin. Fast company. According to a principle of economy of scale, the bigger an order is, the less it costs to produce.

Furthermore, this system allows Telfar to collect valuable information on the attractiveness and profitability of its products, and therefore to better manage its inventory, avoiding waste of space and resources. In cable, Telfar Live also allows you to understand how pricing works in fashion, between the wholesale price and the retail price (wholesale AND see detail) fashion and how much it can serve the end customers.

In fact, on the traditional trade side, it is difficult to believe in the preciousness of a product first sold at a high price, then sold off under various pretexts (sales, private sales and other Black Fridays). Unless we admit that the starting price from conventional brands is for the pigeons that lie dormant in us…

This Telfar Live operation kicks off on telfar.net on March 27, 2023, with new coins dropping weekly until April 24 2023.