What is the reason "Steve and Barry's" have not raised their prices by 1 cent?

BRY2K

How can Steve & Barry's charge so little? One reason: the cut-rate deals it negotiates with landlords. Most of its stores are in middle-market malls, which have seen rising vacancies, due to the closure of regional discounters, department store consolidation, and loss of business to powerful off-mall retailers. "Some of these [mall owners] are desperate," says Deutsche Bank (DB ) real estate analyst Louis Taylor. So as the chain's popularity has risen and store size has increased, it has been able to negotiate lease rates that are less than half those of most mall tenants, says Prevor. Low rents are hardly the only way the men keep costs low. While malls usually give new tenants allowances of $20 to $30 a square foot to build interiors, the popularity of Steve & Barry's has allowed the chain to command "build-out" fees as high as $80, considerably more than actual costs, says Ivan L. Friedman of Retail Consulting Services Inc., which advises retailers on real estate issues. That's enough to cover a store's initial inventory, lowering operational costs further, he adds. Prevor denies that mall payments exceed actual interior costs. Even so, he says, there's no question the fees "fuel our growth." Steve & Barry's also saves money in purchasing. It buys direct from overseas factories, like many others, but cuts costs by accepting longer lead times. It also saves by offering steady production throughout the year rather than seasonal ramp-ups. http://www.businessweek.com/magazine/content/06_15/b3979091.htm Jun 19 08, 7:24 PM

dj168

There is another reason. But very interesting... The store in Fisherman's Wharf is prime real estate... Jun 19 08, 8:18 PM

zbeckabee

Steve and Barry's still refuse to consider raising their prices by one cent, BECAUSE, at Steve and Barry's, "Fashion is not a luxury." http://myitthings.com/wiselyfemale/Post/fashion/It_Brand/_Fashion_Is_Not_A_Luxury_/455202008101824064.htm Jun 19 08, 9:14 PM

queproblema

Reading Zb's reference, I suggest a two-fold reason: 1. They want to sell at as low a price as possible. 2. Because they do not incur advertising costs, (as well as because of the deals they swing with their landlords, Bry) they are able to sell more cheaply than competitors. Jun 19 08, 10:23 PM

dj168

Yup, the answer is that Steve and Barry refuse to raise prices and they say they try to find every way to lower their prices instead. Also another reason is that the stars sell the products and they dont need advertising. Jun 19 08, 11:12 PM