Telfar, the New York-based brand renowned for its ‘Bushwick Birkin’ shopping bag totes, took a radical approach to its pricing strategy for a collection released in March 2023.
In a significant departure from traditional pricing models, Telfar shifted to a consumer-driven approach where prices are determined by demand. Following the collection drop, prices of items gradually increased from the wholesale cost up to the retail price, reflecting the value perceived by customers. Once an item is sold out, its price will remain fixed for future collections. This innovative pricing structure, known as Telfar Live Price, featured weekly drops of new items running until 24 April.
The strategy ensures that the collection’s fastest-selling and most popular items are also the most affordable, flipping the traditional fashion pricing model on its head. ‘Many brands use price as a barrier to entry,’ designer Telfar Clemens told Fast Company in a recent interview. ‘I never wanted that for my brand.’
Telfar has consistently challenged industry norms, particularly in terms of pricing and managing demand, positioning itself as a luxury brand with accessible prices. With this bold move, Telfar continues to disrupt the fashion landscape, prioritising inclusivity and redefining the concept of luxury for all.
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