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indochinoreview

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Jul 3 13 5:30 AM

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Indochino today increased prices across their Essential Line by $70. What are your thoughts on the increase?

Indochino reboots Essential Collection (and increases prices)

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jwhende7

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Posts: 8

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Jul 3 13 8:22 AM

I definitely feel like this was handled extremely poorly from a PR standpoint and perhaps may even be a bad overall business decision.

I don't work for Indochino, so I don't know their figures, but I'd wager that the essential line was by far their biggest seller...and there is a reason for that- a very accessible price point. 

People took a chance on Indochino because $379 was by far and away the best price for a MTM suit, and at the end of the day if it didn't fit properly it was just a $379 suit. Heck the only reason I convinced my wedding party to go Indochino was because of that great price, I can guarantee they would not have forked out $450 to a company they didn't really trust in the first place. For attracting new customers, I really think Indo dropped the ball here and lost track of what the companies value proposition actually was. While 70 bucks doesn't seem like that much, it puts Indo suits on a different level, in a different playing field where customers have more expectations.

As for existing satisfied customers, its more of the same but not as bad. Were a little bit locked in because we've spent a lot of time, effort, remakes and alternations getting the suit measurements to fit our taste. That doesn't mean they couldn't have made a effort communicating specific changes they have made to justify the price hike. For me, they wouldn't have had to do much. If they had said that the essentials are all half-canvassed, solid material and thrown in a smart pocket or something, I think I would have felt ok. As far as we can tell though, these are the same basic suits, with no extra bells and whistles..there just $70 bucks more.

And if so, that's pretty lame

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adambeck

Indochino Novice

Posts: 40

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Jul 4 13 8:37 AM

I understand their need to increase prices, they've done a number of upgrades and I was expecting them to increase prices someday, however I think the amount they chose to do was a pretty over the top.  A 15-20% increase seems a pretty heavy handed.  I haven't bought a suit since they did all these upgrades, so I can't speak to whether it's worth it or not.  I'm hoping their seasonal lines don't go through a $70 increase as well though. I can't see anyone in marketing suggesting that high of a price increase, but someone must have okay'd it.  If they went up $40, for about a 10% increase, that would have seemed reasonable to me, but to hike your prices 15-20% for any product, is really messed up from a consumers perspective.  

They've clearly been trying to rebrand themselves as a Premium (aka more expensive) brand, a number of their releases this year have focused on "premium" fabrics and have been geared towards people looking for a more luxurious piece of clothing.

Considering I work in marketing, I don't think our company would consider that amount of increased profit worth the loss of loyal customers, but also part of their new business model to me seemed like they would try to hook a customer in with a lower cost first suit, then once that customer gets their measurements locked in, they tend to continue buying from them because they can't find anywhere with a better fit.  The entry-level suit options, which would be the lure to hook those types of customers, have now been removed.


I agree with jwhende7 that I probably wouldn't have had my wedding party use them if the prices had been at this level, either.

TL;DR  I was expecting a price increase sometime soon, but think they should have kept it at a more reasonable level.  I think they'll actually do more harm to their business model than good with this, but I doubt it will affect my future use of the brand unless they make these changes across all of their lines.

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