How to Cost a Garment Properly

Start with the cost sheet, not the quote

A quote is one number someone else controls. A cost sheet is a model you control — and the only way to see which lever to pull when the price does not work.

The lines that belong on it

1. Fabric: price per yard or kilo x consumption, plus a waste allowance (commonly 3-10% depending on the marker)
2. Trims: zippers, buttons, elastic, interlining, thread, drawcords, hardware
3. Labels and packaging: brand, size, care/content, hangtags, polybag, carton
4. Labor: cutting, sewing, finishing, pressing, packing — broken out where possible
5. Secondary processes: wash, dye, print, embroidery, garment dye
6. Factory overhead and margin
7. Freight and duty to your warehouse
8. Inspection and a defect/rework allowance
9. Development amortization: patterns, samples, fabric minimums for sampling

Landed cost is the number that matters

Price your product off landed cost — the per-unit cost of a finished garment sitting in your warehouse, ready to sell. Everything else understates reality.

Setting the price

• DTC brands commonly target 65-75% gross margin, often anchored around 4x landed cost
• Wholesale generally needs keystone or better, with the retailer margin setting your ceiling
• If you sell both, the wholesale price sets the floor and DTC follows — not the reverse
• Plan for discounting: if 30% of units sell on promotion, that belongs in the model

When the price does not work

Attack it in order of leverage: fabric, construction, trims, quantity, factory, country. Cutting quality last — the version of the product that sells is what makes the math work at all.