How Much Does It Cost to Start a Clothing Line?

The two budgets

Development and production are separate budgets with different risk profiles. Development is money you spend to find out whether the product works. Production is money you spend once you know.

Development costs

• Tech packs and specs per style
• Patterns and grading
• Sample fabric and trims, often at minimum purchase quantities
• Sample making across two to four rounds
• Shipping samples back and forth
• Fit model or fit sessions
• Labels, hangtags and artwork setup

Development is routinely underestimated. It is also where cutting corners is most expensive, because every gap resurfaces in production at a much larger multiple.

Production costs

• Unit cost x first-run quantity, usually with a deposit up front
• Fabric and trim purchases, sometimes paid separately and earlier
• Freight, duty and customs on overseas production
• Inspection
• A defect and rework allowance

The costs people forget

• Cash tied up in inventory for months before it sells
• Warehousing or 3PL setup and per-unit fees
• Photography and sample garments for marketing
• Returns and the units you cannot resell
• Reorder deposits placed before the first run has sold through

How to budget sensibly

1. Cost one style fully, end to end, before you plan a whole line
2. Start with fewer styles, fewer colorways and a tighter size curve
3. Treat the first run as a learning run, not a margin run
4. Hold back reserve capital for a reorder — selling out and being unable to restock is a common way to stall
5. Get a realistic view from someone who has made this product before you commit