Wholesale Costing vs. Retail Costing

Added a free program for costing to ROI

Mechanics of Fashion

Designs are your cash cow. Depending on the complexity of your garments, the cost will increase or decrease. For example, you may have designed a great dress, expensive fabric , many pattern pieces, and unique interlinings for support. However the cost maybe upwards $130.00 The dress will retail roughly around $700.00. Here is how the break down works.

Cost: 128.23 @ %50=$256.45

wholesale: $256.45@ %400= 512.90

Retail price: $510.00- decreased mark up to meet a round number and needs of the consumer.

Simple enough. However the biggest mistakes a designer can make, occur in costing. Sometimes it is helpful to focus on the price point of your demographic. Then use the retail ceiling of your demographic to price. Then use costing as a way to source materials and manufacturers for your garments.

For example, the demographic of a junior market may be willing to buy a t-shirt for 7.00-10.00 vs…

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