MAES London have created a template for pricing and costing a garment.
Getting your pricing right is crucial because it will determine how much revenue you will make after you take all of your costs into account. Understanding the full cost of a garment is a fundamental part of the planning process.
It is important that all costs are considered within this exercise to ensure you can achieve your desired wholesale and/or retail price point. These costs will include cloth, trims, packaging, shipping, development and production.
This download includes a template for garment costing, establishing wholesale and retail prices and an example purchase order.
How to Price your Garment
From MAES London
This spreadsheet is useful for any fashion business looking for a quick and easy way to help them price their garments. There is also a ‘purchase order’ sheet that can be sent to your manufacturer, giving them a complete view of the size of the order, your target make cost and other important details.
To use the pricing sheet, add each of the costs of your style ‘per unit’ into the spreadsheet including the target cost to make the garment. Once these costs are entered it will add up all of the costs to give you a total cost for that style. It will generate a wholesale price applying an industry-standard markup of 2.7 times the total cost and a recommended retail price at 2.7 times the wholesale price.
The second worksheet is your ‘purchase order’. You can send this sheet to your manufacturer once an order has been placed as it details the number of units for your order across all sizes. Add your target make cost ex VAT and this will give you the total cost to produce the order.
Understanding your costs will help you to more accurately price your garments.
“From a manufacturer’s viewpoint, we prefer to work with brands that have gone through this exercise because it helps them to establish a realistic make cost. Manufacturers have margins to hit too and a garment that is priced correctly should be profitable for you and your suppliers, including your manufacturer.” Joshua, MAES London