Hacker News Reader

The heuristic seems to be: have a brand name but *not* one you'll see on the high street.

If it is on the high street, it's expensive in order to fund advertising, not higher quality.

You've basically got it right when it comes to marking. All the brands I've mentionned, and really all the reputable clothing / shoeing companies, have a production cost that's around 50% of the retail price. Add in all the miscelanous costs and the final margin isn't that high. For the largest of them "marketing" is having a few stores in key areas (London, Paris, NY) and a stall at some events.

If you take that formula and input marketing, you've got luxury companies : great craftsmanship at inflated prices.

Reply on news.ycombinator.com