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Founder guides

Understanding garment costing

What makes up the price of a garment and how to plan a sustainable margin.

What the unit price includes

  • Fabric and trims, including waste from cutting.
  • Labour for cutting, sewing and finishing.
  • Decoration such as printing or embroidery.
  • Labels, packing and quality control.

Costs founders often forget

  • Sampling and pattern fees.
  • Shipping, duties and insurance.
  • Returns, damaged pieces and unsold stock.

Rule of thumb

Many brands aim for a retail price of roughly three to five times the landed cost, to leave room for wholesale, marketing and VAT. Your own numbers will depend on your sales channel.

This guide is general information, not legal advice. Rules change and can differ by country — check the official sources or a qualified advisor before relying on it.