Pricing is where many new clothing brands lose money without realising it. A price that covers production but not marketing, returns and discounts can make every sale a loss. Here is a simple way to price with confidence.
Key takeaways
- Price from landed cost per unit: production, decoration, labels, packaging, shipping and fees.
- Leave margin for marketing, returns, platform fees and planned discounts.
- Keystone pricing (retail about double wholesale) is a common starting point to adjust from.
Step 1: Calculate landed cost per unit
Add every cost to get one finished garment to your customer-ready stock:
- Production (fabric, cutting, sewing)
- Decoration (printing or embroidery)
- Labels, hang tags and packaging
- Shipping to your warehouse and any duties or fees
- Share of sampling and development costs
Our guide on how much it costs to manufacture clothing explains each factor.
Step 2: Set your wholesale price (if you sell wholesale)
Retailers need their own margin, so your wholesale price must leave room for it while still covering your costs and profit.
Step 3: Set your retail price
A common rule of thumb in fashion retail is keystone pricing, where retail is roughly double wholesale. Direct-to-consumer brands often start with a markup on landed cost that covers marketing, returns, fees and profit, then adjust based on positioning.
Step 4: Account for hidden costs
| Cost | Why it matters |
|---|---|
| Marketing and ads | Customer acquisition is often the biggest cost online |
| Payment and platform fees | A percentage of every sale |
| Returns and exchanges | Shipping, handling and unsellable items |
| Discounts and sales | Planned promotions reduce average selling price |
| Free shipping offers | Shipping cost moves to you |
Step 5: Check the market
Compare similar products in quality, fabric weight and brand positioning. Decide whether you are value, mid-market or premium, then make sure your fabric, finish, tags and packaging match that price.
Step 6: Improve margin without raising price
- Simplify construction details that customers do not notice.
- Optimise print colours and placements.
- Order realistic quantities to avoid discounted leftovers (see MOQ explained).
- Bundle products to raise order value.
A quick example structure
Retail price = landed cost + marketing + fees + returns allowance + profit
Fill in your own numbers from your quote and sales channels, then sanity-check against competitors.
More in our Start Your Brand guides
- Custom clothing manufacturer
- How to Start a Clothing Line: A Step-by-Step Guide for 2026
- How to Name a Clothing Brand: 9 Steps to a Name That Sticks
- How to Design a T-Shirt: A Beginner's Guide From Idea to Production
- How to Sell Clothing Online: Platforms, Setup and Launch Checklist
- Clothing Brand Marketing: 12 Ways to Get Your First 100 Customers
Frequently asked questions
How do I calculate the price of clothing?
Start with landed cost per unit (production, decoration, labels, packaging, shipping and fees), then apply a markup that covers marketing, returns, overheads and profit, and check it against competitor pricing.
What is keystone pricing?
Keystone pricing is a common retail rule of thumb where the retail price is double the wholesale price. Brands selling direct to consumers often use it as a starting point, then adjust.
Should I price low to get first customers?
Very low prices can make the brand look cheap and leave no room for marketing or wholesale. It is usually better to price for value and use launch offers carefully.
How do discounts affect my pricing?
Plan for them in advance. If you expect to run sales or offer wholesale, your full price needs enough margin to stay profitable after discounts.
Start with an accurate cost
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