What is a pre-order pricing strategy and why do we use it?

The first reason we sell things on pre-order is to reduce the number of items that languish in inventory and may never be sold. Traditional retail includes this “loss” cost when setting the price of a garment. Besides, year after year of producing garments that are not wanted or needed is a lot of unnecessary use of raw materials. What a waste!  

TRADITIONAL PRICE MODEL

The second reason we do pre-ordering is to keep the final cost of our garments reasonable and to avoid unnecessary markup. Labor is the single biggest expense in the manufacturing cost unless you are not paying a fair price for work. To keep our prices realistic, we don’t produce extra garments that we know we won’t sell and fold that cost into the final price. We also don’t need to include the cost of physical retail locations, fancy marketing campaigns, or inflated management salaries. 

ATACAC PRICE MODEL

The third reason we use this strategy is to showcase transparency in our business model. We believe that our customers should know what they are paying for when they buy our garments and trust that we stand behind our values as a sustainable company.