How Much Did You Pay For Cotton Pants?

Once in awhile, I will run across an item over at J.Crew's website and say, "wait, how much are they asking for it?" For example, J.Crew's Bowery Acadia Paisley Pants in Classic Fit (Item 23879; $248.00). I get especially confused at the price tag when its for a classic staple of clothing like cotton pants.

"Thanks!" to J.Crew Guy In Canada who shared the following article from the New York Times, which sheds some light on why the price difference. To read the article its entirety, click here.

Why Does This Pair of Pants Cost $550?
By Eric Wilson
April 28, 2010

Even in a season when designers made no secret about reining in prices to appeal to the newly chastened luxury consumer, it is still possible to walk into a store and wonder what exactly they were thinking when a pair of khaki cotton pants — right there on the hanger, no special packaging or 3G plan or anything — can cost as much as an iPad.

Never mind that classic button-fly chinos at Abercrombie & Fitch cost $70 or that Gap sells “original khakis” for $44.50. The fact that luxury chinos exist — and in surprising numbers — is another story, one that illustrates the challenge faced by designers to justify the still sky-high prices of their clothes. A distinctive design might strengthen the argument, but is $550 really a fair price for basic pants?

Yet, from the designers’ perspective, there is value to be found in pants that are thoughtfully designed with high-quality materials and labor. ... For new designers, like Scott Sternberg, ...his cotton gabardine khakis, sold at Bergdorf Goodman, cost $550.

...So with labor and fabric, the cost to make Mr. Sternberg’s pants was about $110 — a fifth of what they cost in a store. The final price reflects the markups of the designer and the retailer, what they charge to cover expenses, pay their employees and, with luck, make a profit on what sells to cover the losses on what does not. Mr. Sternberg doubles the cost to arrive at a wholesale price of $220. The retailer adds another markup, typically a factor of 2.5, which brings us to $550. Is it too much? ...

After reading this article, J.Crew's Bowery Acadia Paisley Pants look like a bargain! ;) But in all seriousness, it was interesting to read the work behind high-priced pants as well as the mark-up in price by the designer and retailer.

What are your thoughts on the article? Do you think there is the value behind high-priced khaki cotton pants?