You see it on the streets, on every fixed-gear riding hipster and PBR-drinking indie kid. But whether you like it or not, American Apparel is here to stay. And that’s what I am having trouble figuring out: whether I like it or not.
Like most of my peers, I myself own a few pieces: the token white-zippered hoodie, and the sleazy v-neck t-shirt being a few examples. But these were acquired over years, scouring second hand shops and graciously accepting gifts at Christmas. But I could never really understand why the average person would go and spend $30+ on a blank t-shirt. It just seems ridiculous.
But now it all makes sense; cost-based pricing. The price of this t-shirt encompasses all the costs involved in it’s production (including social and external costs). That means the immigrant workers receive a fair wage for their day in the LA factories. That price premium supports the production of organic cottons. It even enabled the company to react immediately to the earthquake in Haiti, and ship emergency supplies from the port of LA to Port au Prince.
I guess a lot more goes into a t-shirt than $0.50 worth of cotton and $0.05 of dye. Heck, maybe $30.00 is a good deal. Hmmm, maybe not.
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