Pricing isn't tricky; it's just math.

Sarah Tally

Posted on February 25 2021

Pricing isn't tricky; it's just math.

So, how do I come up with prices? The short version: industry standard is to multiply the cost of making the garment by 2 - 2.5 to reach the wholesale price. The difference between the actual cost and the price is overhead and profit for the maker. For something that gets sold in a store, the price gets marked up again so that the store makes some money too. 

Here is how it actually works for the Betty dress. 

First, add up the cost of all the materials: $15.30 for the linen fabric, $4.30 for cotton lining and interfacing; $1.00 for labels; $0.45 for the zipper; and $0.75 for the packaging. 

Next, add the cost of cutting and sewing - the work done by the people in the manufacturing facility - which is $35 per dress for the Betty dress. For a more complicated dress like the Virginia, that cost is $75 per dress. 

Lastly, multiply the total cost by 2 - 2.5 to cover overhead and profit. Overhead includes things like pattern-making, samples, website, marketing costs, etc.

In the case of the Betty dress, the total cost to make it is $56.80, and I sell it for $130, approximately 2.3 times the cost of production. The exact markup differs for each item. 

As you can see, the most expensive part of the dress is the labor. This is why other brands clothing is cheaper. What you buy at a typical store, whether big box retailer or boutique, is made by people in other countries who are not paid a fair wage. My commitment to responsible production means that Rose Hill's clothes will cost more. I think it's worth it.  

More Posts