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Local Threads
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Local Threads will seek to expand its customer base well beyond diehard environmentalists by offering services and products which engage different groups:
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Small gift items, intended for impulse buys or for the casual shopper, are priced under $25 and are located conveniently near the check-out area of the store. Through a survey of Redwood City College students, Local Threads found that under $25 is the right price for college students to purchase gifts for each other, family, and significant others, and that these students will often feel inclined to buy items at this price point without a specific recipient in mind at the moment.
Much of the clothing in the store will be priced similarly to a high-quality chain store such as Banana Republic or the Gap. However, individual items may have a range in price (such as skirts ranging from $30 to $100 due to the differences in cost structure between a mass producer and individual craftspeople). Items that are hand-crafted by an individual designer/producer may be priced 50% to 100% higher than a mass-produced item. All products will generally feature a 67% markup over the supplier's price. This is less than the industry standard, but will keep retail prices more competitive as the products are somewhat more expensive to source.
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