Almost every pricing disaster comes from starting at the wrong end. Somebody decides what a piece should retail for, works backwards to a wholesale price that sounds reasonable, and only later finds out what it actually costs to make. This guide builds the numbers upward instead.
Inside you'll find:
The four numbers, in the order they have to be worked out, and why you get one clean shot per line
A landed cost worksheet that includes the two costs everyone undercounts: freight per good unit and a defect allowance
Keystone explained, the standard apparel multiples, and the three situations where they break
Margin and markup are not the same number, with a conversion table so you never work it out again
Why doubling your cost is a 50 percent margin, not a 100 percent one
Pricing so your stockist can make money, including what she needs to clear and what happens if your MSRP does not allow it
Everything your wholesale price has to cover beyond the product: rep commission, marketplace commission, samples, trade shows, terms, damages, and markdowns
Four sanity checks to run before you publish, including the bad season check
Minimums, price breaks, and why you never negotiate off the line sheet
Selling wholesale and direct without undercutting the shops carrying you
Four honest options when the numbers do not work, including not wholesaling that style
Repricing between seasons, and a per style pricing sheet with a last reviewed date
Who it's for: brands selling to boutiques, and anyone about to publish a first line sheet.
Delivery: instant digital download, 23 page PDF with fill-in worksheets.
Please note: figures are illustrative examples used to show the math. This is general educational information, not financial advice.
