Founder guide

How to Price Clothing for Your Brand: A Simple Pricing Formula

Landed cost, markups, wholesale vs retail and the hidden costs founders forget: a simple way to price clothing so every sale actually makes money.
Specialty Printing Techniques to Elevate Your Brand

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

CostWhy it matters
Marketing and adsCustomer acquisition is often the biggest cost online
Payment and platform feesA percentage of every sale
Returns and exchangesShipping, handling and unsellable items
Discounts and salesPlanned promotions reduce average selling price
Free shipping offersShipping 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.

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

Get an itemized quote that breaks down production, decoration, labels and packaging, so you can price with confidence. Reply within 24 hours.

Get an Itemized Quote
remove_action('wp_head', 'wp_generator'); remove_action('wp_head', 'rsd_link'); remove_action('wp_head', 'wlwmanifest_link');

FREE QUOTE · NO OBLIGATION

Request Your Custom Quote

Tell us what you are making and our team will reply within 24 hours with recommendations and an itemized quote.

Tell us about your project

Your details are only used to prepare your quote. We never share them.

BEFORE YOU GO

Not ready to order yet?

Send us your idea, even if it is only a sketch. Within 24 hours you get fabric suggestions, a realistic timeline and an estimate, with no commitment.

Get a free production plan

Your details are only used to prepare your quote. We never share them.