Telfar sets new pricing model for its latest collection

Telfar, known for its popular “Bushwick Birkin” bags, is introducing a new pricing strategy for its latest collection on 27 March.

Instead of setting prices, Telfar will allow consumer demand to determine the cost: after the collection drops, the prices of the items will start to rise from the wholesale price to the retail price (the price at which it would be sold in shop). Once an item is sold out, it will remain at the price at which it arrived for future collections.

As part of the Telfar Live Price format, new items will appear weekly until 24 April. “A lot of brands use price as a barrier to entry. I never wanted that for my brand,” said designer Telfar Clemens. This move will shake up the norms of the fashion industry, especially when it comes to pricing and demand management.

Instead of raising prices as their bags increased in notoriety, they stayed below $300. After they sold out in seconds, in 2020 the brand introduced its “bag security programme”, a 24-hour offer in which shoppers could pre-order bags to be manufactured and shipped months later.