The new Phantom jeans from True Religion have a list price of $375 — which is a deal when you consider Gucci jeans can go for $495 to $665. You might ask the same question I did “How Can Jeans Cost $300?” — fortunately the Wall Street Journal (July 7, 2011 – non-subscribers may have to click here) asked the same question. The article notes that costs are higher due to material costs and manufacturing — as well as the markups at wholesale and retail. There is also a nice graphic that lists all of the material, trim, labor and other costs. On top of that add the advertising costs — and relatively low sales volume.
This article might provide a nice addition to a discussion of branding, pricing, or manufacturing/costs (in Basic Marketing we cover marketing cost analysis and examine costs and production in our cross-functional chapter).