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. With Brand value stat of the day
The WSJ has a story about lux brands cutting prices. It would appear they have room to do so:
Luxury-goods companies don’t disclose margins for their individual brands, but Louis Vuitton, one of the world’s most profitable labels, is estimated to have a margin of 45 cents on every dollar.
That’s not additional cost due to design or materials or other quality-related expenses in the production process that are passed along to consumers. That’s the markup. That’s profit.
That’s amazing.
Further diversion may be found at MKTG Tumblr, and the Consumed Facebook page.
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Kim Fellner's book 
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Reader Comments
Why is the 45% markup amazing? They report a low inventory turnover rate. Now, if they were low turnover rate, and low margin, then they would have problems.
BTW, what do you think Apple’s markup is?
Depends on the product, but as a company, Apple reports profit margin of about 15%, and operating margins of about 20%.
The 45% marksup is not shocking. The funny thing is that no matter what the markup is, their products will sell. I doubt cutting prices a little is going to break their banks. How much of the actually price of these brand’s products are going to be cut? Who has & what is the highest known markup currently?
I totally agree with Chris. 45% markup is not that surprising. Consumers would still buy products, and it is only the actual price matters, i think.