Price does not indicate profit
PARIS (UPI) — Any husband feeling outraged at getting a $900 bill for his wife's dress from a Paris fashion house might like to consider this surprising fact: The profit margin for the fashion house concerned is likely to be only around $40.
Of the selling price, more than 40 per cent goes to the state. The amount remaining is almost completely taken up with wages, materials and overhead expenses.
The 20 leading fashion houses in Paris create 100-250 models twice yearly. Taking the top end of this estimate, the total potential model output of the whole industry could be about 10,000 models a year. Assuming an average $40 profit margin per model, the total potential profits for the industry thus comes to a
little under $1 million a year-shared among 20 houses
Remains immune
The industry remains immune to modernization and automation since 95 per cent of each garment is hand made. Production costs rise steadily, while demand remains at a relatively low and static level.
The haute couture world thus might seem doomed. In fact, however, the picture is far from gloomy. The capital invested in each collection is not measured against the purchases made by a limited number of rich women but rather as an overall publicity budget designed to stimulate numerous other activities.
These are now well diversified. The sale of fashion accessories, mass produced,and mass marketed generally by
Who's Whose
Pinnings
Helen Clark, Mayfield freshman, majoring in chemistry, to Jeff Lough, Salina sophomore majoring in political science.
Leslee Bush, Shawnee Mission freshman, majoring in sociology, to Jerry Gottlieb, Kansas City, Mo., sophomore, majoring in business.
Terry Shaw, Webster Groves, Mo., sophomore, majoring in physical therapy, Delta Delta Delta, to David Clark, Northbrook, Ill., sophomore, majoring in chemistry and psychology, Alpha Kappa Lambda.
Engagements
Cindi Wicinski, Kansas City junior, majoring in advertising, to Bennie Harding, Kansas City junior, majoring in elementary education.
Ruth Kolarik, Caldwell senior, majoring in art history and German, to Mark Ziser, Wichita senior, majoring in pharmacy.
Virginia Ann Tate, Bellevue, Neb., senior, majoring in psychology and human development and family life, to Michael Hay, Overland Park senior; majoring in speech communications and human relations.
Sharon Manley, Kansas City, Mo., sophomore, majoring in science, Sigma Kappa, to Joe Timmons, Wakeeney junior, majoring in mathematics and computer sciences.
Cindy Miller, Florissant, Mo., junior, majoring in elementary education, Sigma Kappa, to Al Wright, Pawnee Rock junior, majoring in zoology, Acacia.
Sonja Carlson, Independence, Mo., junior, majoring in physical therapy, to Robert J. Paulette, Muscatine, Iowa, senior, majoring in civil engineering, Theta Tau.
Karen Sue Englund, Lindsborg freshman, majoring in c
rg freshman, majoring in child psychology, to James Michael Jones, Kansas City, Mo., freshman, majoring in architecture.
industry and holds out the promise of a golden future.
Karen Sue Englund, Lindsborg freshman, majoring in child psychology, to James Michael Jones, Kansas City, Mo., freshman, majoring in Apr. 8
independent manufacturers in the couturier's name, benefits from the designer's reputation gained in the secluded haute couture world.
Earn royalties
Thus the show goes on. The publicity value of the collections said to be created for the happy few, has become immense in the conquest of new markets for a large variety of fashion-house designed articles. Their original function has changed—but the one constant factor no house can do without, is its designer's talent.
and 12 per cent which have become an important source of income to each fashion house.
Many houses also cater for menswear. This activity seems to be fast-growing throughout the
Licensing agreements are concluded with manufacturers all over the world. Merchandise such as shoes, ties, stockings, glasses, perfumery, lingerie and scarves, earn royalties between 7
Perfumery is another all-important and highly profitable sideline. Most fashion houses sell perfume and toilet water under their name, a separate company having often been created for the purpose;
People-to-People Elections For 1969-1970 Sunday, April 13
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