Image via Telfar
Telfar, a fan-favorite New York-based brand, recently announced a radical pricing model that can potentially revolutionize how consumers purchase their fashion goods. The brand, which gained its popularity for its unisex, vegan leather bags in varying sizes, has introduced a ‘Live Price’ pricing model solely based on customer demand.
This is unlike anything we’ve ever seen in the fashion industry and has the potential to upend what we know as the traditional pricing structure.
You may be wondering, “How does this pricing model work?”
Here’s the breakdown:
The way we typically shop is by purchasing an item that has a pre-set price. Telfar is flipping the standard on its head with Live Pricing, meaning the price of Telfar’s items will be determined by how quickly they sell out once they drop — meaning the faster the item sells out, the cheaper it will be, and the longer it sits, the more expensive it will be.
This is the process as explained on Telfar’s website:
1. Collection drops at the wholesale price (more than 50% off).
2. The price goes up every second – until it reaches FULL PRICE.
3. Whatever price it sells out at – becomes the price forever, basically.
4. You decide the price: the more you want it – the lower the price.
This model is designed with accessibility and affordability in mind because “rich does not equal fly,”according to Telfar.
I don’t know about you, but I’ve been a victim of both wanting something and selling out before I can even put my credit card information in, and something being right outside my budget. This pricing structure gives me, and other shoppers like me, the opportunity to treat ourselves to something sweet.
By creating this structure, Telfar is putting the power in the hands of the consumer where we may otherwise feel powerless in the face of larger brands. It creates a sense of inclusivity and equitability. This is a radical exit from the traditional fashion industry model that we are all too familiar with — one of exclusivity and elitism.
This innovative pricing could have an immense impact on the way other brands price their products which could potentially lead to a more fair pricing structure throughout the entire industry. But the question remains, will Telfar’s pricing model have enough of an impact on the fashion industry as a whole?
Now, “being in control” of pricing may sound nice to the average shopper, but the likelihood of this being the beginning of a major trend is minimal. Luxury brands depend on exclusivity and prestige, and a new pricing model like this will not allow them to uphold that. I would love to pay wholesale price for a classic Chanel handbag, but it goes against everything Chanel stands for.
Overall, Telfar has created a bold approach to doing business in the fashion industry. It remains unknown if this model will be successful in the long run, but it's a step in the right direction to shaking up the industry and naturally, the Telfar babes love it. Only time will tell to see how this plays out in the coming years but one thing we do know, this price structure is unlike anything the industry has seen.