How much does it cost to sell a pair of $550 Lanvin flats?

Answer by Syama Meagher:

Luxury brands have higher markups than regular brands. In some cases retailers don’t get to the ideal 60% markup, and are looking at margins around 25% knowing that the product will sell due to scarcity and high demand + brand name.

I’d guess that Lanvin would be able to eek out $400 from a flat that sells for $550 from the retailer. Now…on the back end, Lanvin will mark up from their production costs + since they have scaled their production may be able to produce for about $125 (since at $550 we are looking at basics, not python etc.).

At the end of the day Lanvin probably gets $425 if you buy from their site, and $275 if you buy from Barneys or another retailer.

View Answer on Quora