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Post by giles on Dec 22, 2015 10:42:22 GMT -6
My shipping costs to USA are 4 times more than shipping costs to Europe....
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Post by giles on Dec 22, 2015 10:20:46 GMT -6
Refunding VAT is not a legal requirement, it is a business decision.
We had a choice when determining our pricing policy; price higher and refund VAT for non European Union customers or price lower and not refund the VAT.
We decided on balance that having our retail price be as low as possible and the same for all our customers worldwide was the simplest approach.
And you can't apply for a VAT refund on those sales. The mechanics are merely that you effectively reduce the revenue received by 17.6% (1/1.2).
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Post by giles on Dec 22, 2015 9:36:30 GMT -6
There's a difference between intelligent discussion and belligerent babbling though. Very true but I have yet to see the latter. Most luxury brands (let's not fool ourselves, they are one) are very good about controlling pricing. I'm sure this is not a problem that IHUK could foresee, but is a real issue. You keep on calling it a problem. It is not a problem, it is an irritation but it is insoluble. The are are 2 ways of fixing the issue: 1) Increase Japanese domestic pricing, which Haraki does not want to do. 2) Reduce international pricing. The cost base is effectively fixed, so the only way to reduce cost is to reduce margins. The retailers can't reduce theirs (for the reasons I outlined above), I can't reduce IHUK's because we'd like to stay in business. If I made silly profits, I'd be ashamed and embarrassed, but I don't. Do I make a decent living? Yes, but I work 7 days a week, 52 weeks a year and even when I am on holiday, I put the hours in.
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Post by giles on Dec 22, 2015 9:22:56 GMT -6
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Post by giles on Dec 22, 2015 9:20:06 GMT -6
We have not censored anyone for talking about it....
In fact I addressed it in my post above above:
"Yes, you can buy our stuff cheaper off Rakuten. And whilst I would prefer that you did not, the simple fact is that the more Iron Heart that is sold globally, the stronger and more resistant the brand becomes to downswings or anything else unforeseen that crops up."
The simple facts are we have a retailer network and the price is what it is, or I get rid of the retailers and then the end user price can be lowered. That decision is mine and I choose to have a retailer network.
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Post by giles on Dec 22, 2015 5:05:12 GMT -6
IHV-02DD
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Post by giles on Dec 22, 2015 2:19:02 GMT -6
Oh, I can be petulant and childish....
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Post by giles on Dec 22, 2015 1:47:02 GMT -6
We regularly release new versions of printed loopwheeled Tee's. We are also working on a new shape crew neck that will have smaller arms than the existing crew neck.
Regarding the 633. No that is a Self Edge exclusive. Kiya came up with the concept and asked for exclusivity, we gave it to him. Do I wish I'd thought of it? Yes, but it was not my idea....
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Post by giles on Dec 22, 2015 1:44:48 GMT -6
Do I overreact occasionally? Yes I do. But that overreaction is a function of how passionate I am about what we do, what we sell and how we sell it. I constructed the iron Heart business to treat potential customers in the best possible way that I could imagine, that includes, pricing, web experience, customer service etc etc. I did not set this business up to treat you with a lack of respect, rip you off or make a fast buck. You may not like me, and frankly that does not bother me, but please don’t accuse me of mendaciously trying to line my pockets at your expense.
Yes, you can buy our stuff cheaper off Rakuten. And whilst I would prefer that you did not, the simple fact is that the more Iron Heart that is sold globally, the stronger and more resistant the brand becomes to downswings or anything else unforeseen that crops up.
I can’t talk about pricing without expanding the discussion to include the greater business model. I have chosen to have a retail network. That decision has certain impacts, one of which is that retailers need to make a certain margin over wholesale to be viable. That margin varies between 2x and 5x in the clothing industry. My retailers are lucky to make much more than 2x, so they are already at the limit of what is acceptable. That means that I have to have a list price outside of Japan that enables me to sell at wholesale (and make a margin) but also enable my retailers to make the margins that they need to. So having a retail network in a way, forces the retail price to be what it is. But the simple alternative is that I have no retail network and 1,000’s of customers around the globe would not have actual physical access to product (then I’d probably take flak for not having any retailers). On a side note, I have dozens of potential retailers who stop talking to me when I tell them what the margins will be.
I have 3000 square foot of premises here, much of which is product storage, that costs. I have to ship product, pay import tax (12% on landed cost) and 20% VAT (I do get that back, but I have to pay it out initially and wait up to 3 months for a refund). I can’t under declare product cost when importing (and risk having my premises and stock impounded, because that is what happens if you are caught defrauding the Government), so everything is declared at true landed cost. We have 2 guys here, who spend the majority of their time shipping and interfacing with customers, literally some days both of then spend all day dealing with sizing and fit questions, I have to pay them a living wage.
Would I like to be able to sell this stuff for less that I do? Of course I would and whenever I can, I pass cost savings on as price reductions. But the simple truth is, I have to make a profit to continue doing what we do.
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Post by giles on Dec 22, 2015 1:09:04 GMT -6
Apart from the technical gear (Gortex, Primaloft, Pertex) none of our garments are made in large facilities. The largest will be the heavyweight jeans line because we need 13 separate machines to make a pair of jeans. I have not visited all the places we weave and construct our stuff, but I continue to be amazed at how tiny the places are. We tried to expand the shirt making production capability recently, it was a disaster we lost a load of money and the quality was just not up to snuff, there simply was no way to fix the issues (I have the utmost confidence that Haraki would have done it if he could), so we shut it down and walked away with our tails between our legs....
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Post by giles on Dec 22, 2015 0:24:35 GMT -6
If the material cost is high, surely widening the market to IHJP would increase production runs, reduce unit costs and hence drive up sales if that reduction is reflected in the price? No it wouldn't. This stuff is made in a tiny little house factory by a husband and wife team, they couldn't substantially increase production even if we asked. Putting more shirts through the shirt factory (another house factory, but a little bigger) makes no difference to cost either, we've maxed them out too....If we could produce and sell this thing for less, I assure you we would.
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Post by giles on Oct 19, 2015 7:11:49 GMT -6
FYI guys, from Giles in the IH forum; "OK. Couple of production issues..... IHSH-129 - Indigo Check Westerns - delayed until early Spring 2016 All Zippered Hoodies - delayed until mid December - Pullover hoodies not affected Sorry from all of us....." Wow that's not good. If we had nothing else coming out and these had been completely killed, I'd be worried. But we have loads of new stuff (UHF Hombre Westerns & Natural Indigo westerns later this week) arriving all the time, so I'm not.....
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Post by giles on Jun 10, 2015 2:04:29 GMT -6
Super complicated. I wash it when it looks dirty or it smells........ Please help a denim washing noob like me. Do you wash it with the same detergent while using the same method regardless of the fabric or color? I have a pair of brown denim that needs washing, but I also have a pair of grey denim and indigo denim that could use a wash, as well. Should I hand wash all of these together using Woolite Dark? Or separate them and wash the lighter brown and grey pairs with a different detergent? Honestly, my view is that we over obsess this. I use what ever detergent is too hand, I don't buy the stuff, so I use whatever Paula has in the washing room. The only things that I wash are denim, everything else gets bundled up with the weekly wash. Denim, when newish, I always pre-soak and agitate before putting inside out in the washing machine. I wash at 30C with no spin and drip dry. When the denim is older and softer and has lost colour, do the same, just skip the pre-soak...
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Post by giles on Jun 10, 2015 1:59:43 GMT -6
Thank you DigDug
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Post by giles on Jun 9, 2015 22:59:12 GMT -6
We supply all of the retailers outside of Japan, which obviously includes Self Edge, Rakuten sellers buy from Iron Heart Japan and they primarily serve the Japanese market and often do not actually carry stock. The reason there is a price differential is that we have to pay for shipping (both to us and then to end users or retailers), pay taxes, support a network of retailers, carry stock (we have the largest stock of Iron Heart anywhere in the world including Iron Heart Japan). We also invest in the development of new products that are not available in Japan. Retailers have to make a decent margin or else they would not exist, they have staff and premises to fund. We therefore sell at the same price as retailers or else they would (rightly) get pissed off with us and probably stop selling the product which would give you guys less direct access to Iron Heart. We also have a no quibble returns policy which obviously costs us.
Does that answer your question?
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Post by giles on Jun 9, 2015 14:43:46 GMT -6
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Post by giles on Jun 9, 2015 14:38:16 GMT -6
Okay. How do you wash your stuff? Oops, meaning denim. Just to be clear! Super complicated. I wash it when it looks dirty or it smells........
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Post by giles on Jun 9, 2015 12:02:28 GMT -6
Nope
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Post by giles on Jun 8, 2015 14:57:13 GMT -6
Yep Edit: At least the loombreakers are UK only… JP might be getting the non-Selvedge version, not sure. They won't
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Post by giles on Jun 8, 2015 14:40:38 GMT -6
Yes, all retailers will do and Self Edge actually implemented the new prices before IHUK did.....
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Post by giles on Jun 8, 2015 13:35:27 GMT -6
I've just read my blurb again. I think that the 18oz currency pulp denim will come in at feeling more like 15/16oz, not 14oz. Sorry that was my little bit of Pulp Fiction.....
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Post by giles on Jun 8, 2015 11:57:43 GMT -6
giles: what sagely advice would you give to anyone looking to start their own denim brand? What would you consider your biggest failure/success? If there was anything you could change in the denim industry, what would it be? My advice to anyone starting up in any business is that the major determinant as to whether the business will be successful or not is hard work. You have to work hard, then work harder, then work a lot f!@king harder and if you do that and you have a modicum of luck then you may be OK. There is no substitute for working your arse off. I travel a lot and I do go on holidays, but there is never a single day that I don't put at least 4 hours of hard graft in and usually it is 12 plus. I am going on holiday on Wednesday, I got up at 04:00 this morning and it is now 19:00 and I am still in the office and at 57, I am no spring chicken.... Biggest success - Having fun doing something I love. Biggest failure - There's simply nothing I regret, everything I have done/every decision I have made has got me to where I am now. I'd like to have perfect ability to gauge demand, always have enough of every size/colour to 100% satisfy demand and never have any left that I can't ship. Apart from that, I'd change nothing.
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Post by giles on Jun 8, 2015 11:09:07 GMT -6
giles: aside from IH's denim, is there any other specific denim that has been produced that you've thought was particularly interesting or desirable over the last few years? I like most of PBJ's denim, I liked The Steam Locomotive denim, but but I really don't spend a lot of time looking at what other people do. I simply don't have time and it would make no difference to what we do anyway....
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Post by giles on Jun 8, 2015 11:06:09 GMT -6
giles, one quick question; 1. The 633S cut (SelfEdge collaboration) is the best fit I have yet to find in a pair of jeans. As of right now there are currently only two fabrics available in this cut. Are there any plans to release this cut in more fabrics in the future? It is such a great fit it would be a shame not to. And thanks again giles for the awesome interview! It's not my position to talk about it. It's Self Edges cut, Self Edges business, it's up to Kiya to talk about it as he see's fit...
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Post by giles on Jun 8, 2015 11:04:06 GMT -6
Bottom line. Not enough big (or small) guys buy our stuff. Almost invariably when we do a run of XS-XXXL, we are left with XS, XXL & XXXL when all the other sizes have gone. If we sold out of XXXL quickly every time we introduced something, I'd be mad not to make more XXXL next time around and almost as mad not to say "hey, we're selling all the big stuff, let's see what happens when we introduce something bigger still"... And while we're on this, how much does it add to cost to make more sizes - assuming the patterns are already in existence? So, you have a run of your normal sizes, what costs are added by making some 4XL? Thanks again! The patterns are not in existence, we have to grade new sizes.... It's less about the extra cost of manufacture (and it does cost us more), it's more about what we have sitting around in inventory not shifting. Experience shows me that we often get left with XX and XXXL's. My assumption (maybe incorrect) is that if we made XXXXL and XXXXXL we'd get left with them too. Look, I'm in business to make money as well as have fun, if I was convinced there was a market, what do you think I'd do?
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