Let’s be honest: deciding how to price your fashion items might feel like a guessing game. Customers may scroll past if the price is too high. Charge too little and you may end up working for free (or worse, losing money).
Pricing isn’t just about covering expenses. It shapes how people see your brand, whether they buy from you, and if your business can grow. No pressure, right?
The good news? You don’t have to get it perfect on day one. The most important thing is to get started.
You can always adjust your prices as you go. This article will break it all down so you can price your products confidently and without stress.
Let’s discuss pricing.
At its foundation, price is simply determining how much to charge for what you sell. This seemingly simple action has far-reaching repercussions.
How much profit do you earn? How do customers perceive your brand? Whether your business can grow.
There are various ways to price your items. Some companies use subscription pricing to create recurring revenue.
Others use competitive pricing to meet or outperform their competition. The idea is to find an approach that is effective for you.
Why Price Matters More Than You Think
Your price is more than simply a number; it conveys a statement. It informs clients if your brand is expensive, inexpensive, or somewhere in between.
1. Your Prices Decide Whether You’re Making Money (or Losing It)
A lot of new business owners underprice their products without realizing it. Common mistakes include:
❌ Selling too cheap and barely making a profit
Forgetting about hidden costs (like marketing or returns)
❌ Setting prices based on what “feels right” instead of real numbers
Your price should cover everything—materials, labor, marketing, and even future growth. Otherwise, you’ll be stuck in a cycle of working hard without seeing real returns.
2. Pricing Shapes How People See Your Brand
Think about it—when you see a luxury brand, you expect high prices. When you see a fast-fashion brand, you expect affordability.
Your price sets the tone:
Premium pricing = high quality, exclusivity, luxury
Mid-range pricing = stylish, accessible, good value
Budget pricing = affordable, everyday wear, mass appeal
If your prices don’t match your brand, customers might get confused.
You don’t want to sell a beautifully crafted, high-quality piece at bargain-bin prices—people will assume it’s cheap, not a great deal.
3. It’s Not Just About Fabric & Labor—There Are Hidden Costs
When setting prices, a lot of people only think about the obvious stuff, like fabric and production. But there’s a lot more to it:
Direct costs: materials, labor, packaging
Hidden costs: website fees, marketing, photography, software
Variable costs: shipping, transaction fees, returns
Future costs: discounts, restocking, growth plans
If you don’t factor these in, you might think you’re making money when you’re just breaking even.
4. The Right Price Helps You Grow
Pricing isn’t just about making sales—it’s about building a business that lasts. A solid pricing strategy lets you:
✅ Launch new collections
Invest in marketing & influencers
✅ Expand to new platforms (or even open a physical store one day!)
✅ Hire help so you’re not doing everything yourself
If your prices are too low, you’ll always be playing catch-up instead of growing.
5. Pricing Helps You Manage Inventory & Demand
Ever had a product sell out too fast? Or one that just won’t move? Pricing can help with that:
Too much demand? Raising prices slows things down so you don’t run out of stock too quickly.
Slow-moving inventory? Discounts or lower prices help clear space for new designs.
Want steady sales? A consistent pricing strategy makes it easier to predict demand and plan production.
Instead of constantly adjusting prices out of panic, use them as a tool to control your business better.
The Ultimate Guide to Pricing Your Fashion Products for Profit
Pricing is more than simply a number; it’s a message. It tells your customers what your brand stands for, what kind of quality they can expect, and where you fit in the market.
Get it right, and you’ll have a successful, long-term business. If you get it wrong, you could be underestimating your chances of success or overestimating your chances of becoming irrelevant.
What is the good news? Pricing does not need to be a guessing game. This guide will bring you through a step-by-step process for setting rates that are fair to your clients, reflect your brand’s value, and keep your business prospering.
1. Understand your costs like the back of your hand.
Before you set pricing, you must first determine how much it costs to manufacture and promote each product. Miscalculating your costs is one of the most common ways to lose money before you even begin selling.
Break down your costs into three major categories:
a. Cost of Goods Sold (COGS) is the direct cost of producing each product.
Fabrics and Materials include anything from fabrics to trims, buttons, zippers, and labels.
Packaging includes custom boxes, poly mailers, tissue paper, and thank-you notes.
Labor: The time spent sewing, cutting, and finishing—whether in-house or outsourced.
Manufacturing Fees: Factory costs, sampling fees, and production minimums.
b. Operational Costs – The costs of running your business daily.
Shipping & Logistics: Import fees, domestic shipping, fulfillment center costs.
Warehousing: Storage fees if you don’t fulfill orders yourself.
Marketing: Paid ads, influencer collaborations, product photography.
Technology: Website hosting, e-commerce platforms, email marketing tools.
Customer Service: Support staff, chatbots, help desks.
c. Overhead Expenses – The costs that keep your business running, even if they’re not tied to a single product.
Office or Studio Rent
Utilities
Legal & Accounting Fees
Software Subscriptions: Inventory management tools, Adobe Suite, etc.
Salaries for Non-Production Staff: Designers, marketers, admin.
Example Breakdown:
Total Cost Per Hoodie = $25
2. Set a Profit Margin That Works for You
Once you understand your costs, you need to decide on your profit margin. This determines how much money you make per item and helps define your brand’s positioning.
Common Fashion Markups:
Fast Fashion & Basics: 2x–3x the cost (50–66% margin)
Mid-Tier Brands: 3x–4x (66–75% margin)
Premium/Boutique Brands: 4x–5x
Luxury Brands: 5x–10x+ (80–90%+ margin)
Example:
Total cost per item: $25
Desired markup: 3x
Retail price: $25 × 3 = $75
Profit per unit: $50
3. Understand Your Market & Customer
Even if your pricing makes sense on paper, it still needs to resonate with your customers.
Your pricing should align with your audience’s expectations and purchasing power.
Ask Yourself:
What are similar brands charging?
Is my product handmade, sustainable, or limited edition?
Does my pricing reflect the story and experience I’m offering?
How much is my target customer willing (and able) to pay?
Am I competing in a price-sensitive market, or is exclusivity more important?
Pro Tip: Create a competitive analysis chart comparing prices, materials, and brand positioning for your top 5–10 competitors. This gives you a clearer picture of where you fit in the market.
4. Structure Pricing for Wholesale & Retail
If you plan to stock your products in boutiques or concept stores, you need a pricing structure that works for both wholesale and direct-to-consumer (DTC) sales.
Standard Fashion Pricing Model:
Wholesale Price = Cost × 2
Retail Price = Wholesale × 2 (or Cost × 4)
Example:
Cost: $25
Wholesale: $25 × 2 = $50
Retail: $50 × 2 = $100
This ensures that both you and the retailer make a profit.
5. Plan for Discounts & Promotions
Sales, influencer gifting, and promotions are part of fashion retail. If your profit margins are too tight, these strategies can hurt your bottom line.
Plan Ahead:
Build in extra margin for seasonal sales (10–30% off).
Budget for free shipping, customer returns, and affiliate commissions.
Expect a portion of your inventory to be used for samples or press gifts.
Pro Tip: Assume 20% of your inventory will be sold at a discount and adjust your pricing accordingly.
6. Use Pricing Psychology to Boost Sales
Small pricing tweaks can significantly impact how customers perceive your products.
Charm Pricing: Pricing at $49 instead of $50, or $119 instead of $120, makes the price feel lower.
Prestige Pricing: Round numbers ($100, $500) can work better for luxury products, reinforcing their premium nature.
Choose the strategy that best fits your brand identity.
7. Test, Monitor & Adjust Your Pricing
Your first pricing strategy won’t be your last. Costs change, trends evolve, and your business will grow. The key is to stay flexible and adjust based on real-world data.
How to Optimize Pricing:
A/B Test Prices: Try different price points and see which performs best.
Track Conversion Rates: See how pricing impacts sales volume and average order value.
Monitor Sell-Through Rates: If products sell out too fast, you may be underpricing.
Collect Customer Feedback: Are people saying it’s too expensive or a great deal?
Pro Tip: Stay adaptable—adjust prices seasonally or based on fabric costs, exclusivity, and demand.
Final Thoughts:
Pricing your fashion products isn’t just about crunching numbers—it’s about telling a story. When done right, pricing becomes a tool that works for you, not against you.
By knowing your costs, understanding your audience, and continuously improving your approach, you’ll create a profitable, scalable brand that thrives.
There’s no one-size-fits-all formula, but when you price with confidence and intention, you set yourself up for long-term success.