An enduring truth about the brand Telfar is that the brand continues to shake up the game, regularly selling out new drops in record time, remaining in demand across all tax brackets, and outselling legacy brands on resale sites. Now, with a new unisex apparel line making its debut next week, Telfar is not only poised to once again shake up the industry, but founder Telfar Clemens is betting on it.
On Monday, March 27, at 12 p.m. ET, when Telfar’s apparel line drops online, a live dynamic pricing experiment will be in play. The rules of the experiment are simple, according to Telfar’s website: First, the line will drop at the wholesale price; then, as consumers begin buying the items, the price will increase until the item either sells out or reaches its full retail price. The price at which each item sells out will become the fixed price of that type of item within Telfar’s forthcoming apparel range. In effect, consumers will set their own prices for Telfar’s apparel.
This experiment, which Clemens describes as the “opposite of a sale,” has been devised to be a game changer for fashion retail that puts the power in the hands of the consumers while staying true to Clemens’ tenet to ensure any and all can afford to rock Telfar.
“Many brands use price as a barrier to entry. I never wanted that for my brand,” Clemens told Fast Company in an interview about the new pricing structure.
Clemens and his creative director, Babak Radboy, told Fast Company they came up with the idea after realizing how arbitrary pricing is in the retail world. Essentially, brands typically upcharge for well over an item’s wholesale price or set the highest price they think they can fetch with little rhyme or reason beyond profits.
“The more we thought about it, the more it became clear that the pricing model in fashion doesn’t make any sense,” said Radboy.
The dynamic pricing model…
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