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Posted by Mini, Owner on
Want to hear some secrets? I’m pulling back the curtain on pricing just for you guys.  The industry standard for apparel pricing is fairly straightforward and basic. There are three meaningful numbers, and while there are many nuances, generally this is the pricing formula for retail apparel.
  • Cost of Services & Goods (COSG) = Total costs for all materials & labor to make & ship the item. This does not include upfront product development costs, rent, staff, admin, taxes, etc.
  • Wholesale Price = COSG X 3 (not percent). This is what a retailer like Nordstroms pays for the item.
  • Retail Price = Wholesale X 3 (again not percent). This is what you pay. 
I do not follow this formula, and I’ll write about why next week. (I tried to squeeze it in this time but it was a bit much.) Suffice it to say, you can keep this pricing structure in mind when shopping for clothes to gauge what you’re really paying and receiving.

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