How to Price Your Clothing Brand: Cost, Margin and Retail Price
A practical method to go from factory cost to a retail price that leaves room for growth.
Start with your landed cost per piece – the factory price plus shipping, duty and packaging. A common starting point in fashion is to set wholesale at roughly two times landed cost and retail at roughly two times wholesale. If you only sell direct to consumers, you can price lower than that and still keep a healthy margin, but check that the price covers marketing, payment fees and returns.
Step 1: Work out your landed cost
Landed cost is everything it takes to get one finished piece to your door, ready to sell:
- Factory price per piece (garment, decoration, labels)
- Hang tags and packaging
- Shipping, divided across the pieces in the shipment
- Import duty, taxes and customs fees where they apply
With DDP terms, freight, duty and customs are included in the price you agree, which makes this step much simpler. Read more about DDP clothing orders.
Step 2: Set wholesale and retail prices
Many fashion brands use the “keystone” idea as a starting point: double the cost to reach wholesale, then double wholesale to reach retail. It is not a law – it is a quick way to check that every party in the chain has a margin.
| Example (illustrative only) | Per piece |
|---|---|
| Landed cost | $15 |
| Wholesale price (× 2) | $30 |
| Retail price (× 2) | $60 |
These figures are an example to show the maths, not a quote. Your real cost depends on fabric, construction, decoration and quantity – see our custom clothing price guide.
Step 3: Check the costs brands forget
- Marketing: ads, influencers and content often take a real share of each sale.
- Payment and platform fees from your checkout or marketplace.
- Fulfilment: picking, packing and delivery to the customer.
- Returns and exchanges, especially for fit-sensitive products.
- Samples and photography for each new style.
- Discounts and sales later in the season.
Step 4: Compare with your market
Look at brands your customers already buy from. If your price sits far above them, your product, story and quality need to justify it; if it sits far below, you may be leaving margin on the table. Pricing is also a brand signal – heavyweight fabric, custom fit and premium labels support a higher price.
How production choices change your margin
- Order quantity: larger runs usually lower the cost per piece. Starting at 30 pieces per design keeps risk low while you test the price.
- Decoration: fewer print colours or a smaller stitch count lowers cost.
- Fabric weight and type affect both cost and the price customers will pay.
In practice: for real cost drivers see our custom clothing price guide; to keep your first order small, see low MOQ manufacturing and private label.
Common follow-up questions
What profit margin should a clothing brand aim for?
It varies by channel and category. The key is that your retail price covers landed cost, marketing, fees and returns with money left over. The keystone method is a useful first check.
Should I sell wholesale or direct?
Direct-to-consumer keeps more margin per piece but you pay for marketing and fulfilment. Wholesale moves volume through retailers at a lower margin. Many brands do both.
Does ordering more pieces lower my cost?
Usually yes, because setup costs are shared across more pieces. We show prices for your quantity in the quote.
Can you help me hit a target price?
Yes. Tell us your target retail or cost price and we suggest fabric, construction and decoration options that fit it.
Related answers and guides
Have a target price in mind?
Tell us your product and target cost. We will suggest options and send a free quote.