Tying One On

Judy K. Miler , Nancy J. Rabolt

Business Case
Source: Bloomsbury Fashion Business Cases
DOI: 10.5040/9781474208789.022
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Abstract

A men’s furnishings department of a department store carries exclusive private-label ties from a designer resource. The department buyer has had the full support of her divisional merchandise manager in continuously carrying the line, as he personally favors the tie line and the department. The store has successfully carried the high-end ties for over three years; however, the designer has raised the cost of the ties three times, so the buyer has raised the retail as well to cover the cost increases. When the designer receives offers to sell his ties to some of the department store’s competitors, he decides to meet with the buyer and explain the situation and opportunity to sell to their competition. At the meeting, the designer tells the buyer that if he does not sell to the other stores, he will have to increase the cost of the ties again. This makes the buyer question whether or not her customers will accept another increase in price, and what else might occur if the designer starts selling to their competition. She also wonders whether or not negotiation might help.


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