Last week, I shared some details about how retail apparel is priced. The strategy for Everyday Sabbatical is Direct-to-Customer (DTC), so I skipped the wholesale multiplier. I really hadn’t considered wholesaling, which I may or may not regret (shrug).
Regardless, it’s not relevant right now because retail is such a hot mess and who knows what will happen?
I also used projected (not actual) COSG, assuming lower costs at higher, future quantities. I really wanted to keep most items less than $100 for accessible price points, while still delivering on quality and service – and be a profitable business. My profit margins are less than industry standard right now, but I’m betting that I can lower my COSG with scale and maintain the same quality. It’s a risk, but sometimes you gotta roll the dice. For now, I want to keep pricing as accessible as possible for my awesome customers.