Have you ever though why sometimes we get few designer pieces for so less wether discounts, sale or outlet store of particular designer brands. People always desire for designer fashion goods but everytime its not possible to purchase so expensive accessories, as budget of common man does not allow that, but to benefit these kind of customers brands innovate ideas like outlet stores and discouted stuffs.
Among all ideas, idea of creating factory outlet appeals me most as you can get the most genuine products here for very less, it may be possible you have to travel a bit for availing the services but its worth. Most the outlet stores are outside the city. If you talk about few designer hadbags brands like Louis vuitton, Coach, Fendi, Chanel all of them have there outlet stores.
Lets take Coach for example and discuss how Coach outlet works. All the designer goods pass through many levels before it reaches the store. Due to the chain of jobbers, distributors, retailers and than to you, prices increase drastically, Coach outlets they cut off many of the intermediate levels and try to serve you directly and that cut your cost alot. Coach outlet stores are working fantastic and fashion lovers loves the concept.
Lets have a look on the flow chart of intermediaries who tend to increase the cost of the bags for you as margins for all of them is included in the price of the bag which you pay to own the bag.
Distribution Path
Designer Factory
? ?
Jobber #1 (Italy)
? ?
Jobber #2 (Italy)
?
Distributor
?
Wholesaler
?
Retail Store
?
YOU!
Now you can have an idea how much extra we pay for a particular piece of branded handbag or any other accessory. Coach outlet store or any other branded outlet stores reduce the intermediaries to just one level and provide you the same stuff for less. Lets have a look at the second flowchart which shows the elimination of intermediaries for your benefit.
Designer Factory
?
Supplier
?
YOU!