By Alex Bass
Alex.bass@triangletribune.com
RALEIGH – Brian Burnett never wants to overlook anyone, but knows he needs only so much time to count the Triangle’s number of custom clothiers producing business attire and formalwear.
“No one really looks to our ecosystem as an attractive place to lend,” said Burnett, founder and CEO of Glenwood South Tailors and Alterations. “That’s after being in business for almost 10 years.”
Rising capital costs for Burnett and other tailors like Brian Hines, who opened BR Bespoke Studio on Raven Ridge Road last October, are unprecedented and unpredictable in an industry driven by differentiation – now the victim of its own luxury tax per federal tariffs. “The larger the garment, the larger the fee is,” Burnett said.
For Burnett’s operation, a $3,000 custom suit includes 15% or $450 of the total expense because of tariffs. Hines, known for offering three-suit packages in the range of $2,200 to $2,500, has incorporated upcharges of $100 or more because of tariffs.
“We can’t absorb that amount incurred on our own,” Hines said. “The rate is going to be the rate. The upcharge will be where we split with the tariff.” Hines is proactive in initial client consultations and ongoing email correspondence by reminding patrons that they will have to revisit the final price later in the process because of fluctuating tariffs.
“We haven’t had any kickback,” he said. “Everyone is attributing it to the source.”
Both men have a production staff of approximately 10 people. Hines said he may increase his staff by six. One employee who was contemplating retirement has put that on hold for now.
Packages clearing customs before moving on to couriers is happening less frequently, and they are bulkier. Thus, production is happening at higher rates because more goods must be included in one shipment. All these things come with costs. “Their work is no less quality, so there’s no discount there,” Burnett said.
Maintaining high quality craftsmanship with fewer shipments, Hines said, now precludes him from offering expedited returns. “The item may be finished in two weeks, but it may not ship for another week or two,” he said. On Memorial Day, Hines was tracking a shipment needed by month’s end for a wedding and watched the delivery date change in a moment.
Burnett summarized a trickle-down effect contributing to his $3,000 price point, beginning with raw material manufacturers (buttons, linings, pipings, zippers, etc.) coming from China, France, Italy and the United Kingdom, and thread coming from Germany. Manufacturers pass on expenses to mills which, in turn, pass them on to the clothiers.
“If our stuff was affordable, then we would not be in business,” Burnett admitted.
Hines’ garment production is in Hong Kong, where raw materials are sent from Italy, Spain and the UK. “Everything is getting caught in customs,” he said. “That is where the discrepancy is. We know where that comes from.”
Gone also is the differentiation that accents each customer experience, Burnett said, and supporting other local entrepreneurs. Small gestures like sending clients a bottle of wine on a milestone occasion now are omitted.
“Those things are achieved with the extra margin,” he said. “Then, we don’t support our small business partner in Five Points who sells very nice wine.”
