This is how things work in the manufacturing/wholesale/retail world. Estela manufactures the dresses, sells them to a wholesaler/distributor who has the ability to get her product distributed to the stores, and also goes out and gets orders from the stores in the first place. The wholesaler buys the dresses from Estela for $18 each, the wholesaler probably sells them for about $300 to Bloomingdale's and Bloomingdale's marks them up to the retail price that you'd pay to get one - $600. The extra money in between goes to profit, operating the businesses (the wholesaler's office rent, electricity, phone calls, trips to stores, etc. and the retailer's rent, electricty, staffing costs, profit, etc.). Not necessarily a fair world to the workers out there, but this is the sad truth. People make profit out of the blood, sweat and tears of many other people out there.
The wholesaler and retailer really don't care if the people making the dresses get a living wage or not - they have their eyes on their own profit margin.
reply
share