How does Primark afford to sell things so cheap?

Question

The stuff they sell is very similar to that of Topshop and Next but they sell it for 10 times more. whats going on!??

Why is that strange please??!!

and theyre the same quality as everywhere else to be honest, no different, its just a matter of snobbery me thinks.

Answer 1

I do not think the quality of the things they sell is up to the standards of Top Shop or Next - in fact, they tend to be poor quality.
I think it is likely that they buy their stuff from Third World countries, where they use cheap child labour. I will see what I can find out about this, and they do, we should avoid them.

Hope that helps:>)

Answer 2

Mass Production and mass consumption (This will blow your head off):

A retailer buys stock from a supplier at the purchase price, he then adds on an appropriate amount, and this gives a sale price. The difference between these 2 become the retailers profit.

By reducing the profit margin, he can lower the retail price to the consumer.

By buying more at a time, the retailer can negotiate a reduced purchase price from the supplier, in exchange that the supplier produces more. This is mass production.

The extra volume purchased is sold at the retail price, but because the retail price stayed the same, but the purchase price went down, the profit margin increased to give the retailer more profit. The retailer can use this to lower the retail price.

This lower price can encourage more consumers to purchase the item (Mass consumption), meaning the retailer has to buy even more of the stock, so we go back up to the Mass purchasing step.

This is a simplified version of the generalised production-consumption situation, but a market analyst or someone soecialising in retail could probably give a more precise definition.

Answer 3

It's not crap!!!!! I buy there all the time and it's very good quality- maybe if people bought the right sizes for themselves they wouldn't break, i see so many people wering clothes that are too small for them and then they blame it on the manufactures. They are actually originated from ireland and the clothes are sold chep because they know they get more customers and profit by doing this! i know shops like top shop and next are better quality but they just rip you off!

Answer 4

Well, I would ask why other places have to charge so much. The answer though is that they are branded so you are paying for the name even though the actual goods, material, labour, etc. are the same. Also, places like Primark often have "seconds" where there is something minor wrong with the goods. Sometimes just the label has got the wrong size.

Answer 5

They import the clothes from countries such as India and China where they can be made for a fraction of the cost it would take to make them in UK or continental Europe.

Therefore if they are cheap to make and import then they can be sold cheaply here and Primark can still make a profit.

Do you think Primark stuff is fair-trade - I'll let you make the decision whether or not you think this yourself.

Answer 6

i dont know about primark, but lots of shops that sell cheap clothes are buying them off of sweatshops in other countries, where people are overcrowded work in terrible conditions all for a pittance. and there quite often chidren aswell. try and find our on the net where primark get there stock from. Then tell us all!thanx

Answer 7

I would guess cheap labour in third world countries which means they can afford to sell them at a cheaper price and make a profit because they'd get lots of customers.

Answer 8

the difference is shops like top shop put extortionate mark up and margins on their products where as promarks goes for larger quantities being sold with smaller mark up which in turn makes there profits on a par with topshop...

Answer 9

China

Answer 10

Because they buy there items in bulk, they can get it made at a cheaper rate, basic method applied to all companies

Just look at Tesco, Asda, Morrisons, Pc World etc, Currys....