“Not for you — for everyone,” Telfar’s slogan reads.
With the introduction of its “Telfar Live” pricing model, the popular brand is looking to change the game forever.
“Many brands use price as a barrier to entry,” Telfar Founder Telfar Clemens told Fast Company.
“I never wanted that for my brand.”
On March 27 at 12 p.m., the sought-after brand will release its next collection. When the items are first featured on the brand’s site, they will be available at a wholesale price. In other words, they’ll be available at the discounted price that a retailer pays when buying products in bulk. The price of each item will rise incrementally until it reaches the MSRP, otherwise known as the price an item is sold for once reaches a store floor. However, there is one major catch. If an item sells out before it reaches the MSRP, Telfar will continue to sell the item at that price moving forward. For example, a Telfar bag may initially be sold at a wholesale price of $100. The price of the bag will rise incrementally until it reaches $200. If the bag sells out when the price reaches $130, then it will be sold at the price moving forward.
“This will give us information about how much of each product we should order in the future,” Telfar Creative Director Babak Radboy told Fast Company.
“And the larger the order, the cheaper it costs to manufacture.”