Step 1: Build your landed cost per piece
Landed cost is everything it takes to get one finished, packed piece into your hands.
- Fabric and making (cut, make and trim)
- Printing or embroidery
- Labels, hang tags and trims
- Polybag, mailer box and inserts
- Freight from the factory to you
- Sampling and tech pack costs, spread over the order
- Taxes you cannot recover
Step 2: Add the cost of selling each order
- Shipping to the customer, including cash-on-delivery charges if you offer COD.
- Payment gateway fees on prepaid orders.
- Returns and exchanges: reverse shipping and repacking, spread across kept orders.
- Marketplace commission and fees if you sell on platforms.
- Marketing cost per order: ad spend and creator costs divided by orders.
Step 3: A worked example
The figures below are illustrative, to show the method. Use your own quotes.
| Line | Per piece (₹) |
|---|---|
| Heavyweight tee, made and printed | 300 |
| Labels, tags and packaging | 40 |
| Freight and sampling, spread over order | 20 |
| Landed cost | 360 |
| Shipping, gateway and returns per order | 120 |
| Marketing per order | 250 |
| Total cost to sell one | 730 |
| Selling price at 3.5x landed cost | 1,260 |
| Profit per order before overheads and tax | 530 |
Notice how much marketing and fulfilment add. A brand that priced at 2x landed cost (₹720) would lose money on every order once marketing is included.
Run your own numbers in the free clothing cost and price calculator. It uses this exact method and shows your landed cost, suggested MRP and profit per order.
Step 4: Choose a markup that fits your channel
| Channel | What eats the margin | Pricing implication |
|---|---|---|
| Your own website | Ads, shipping, payment fees | Highest margin if marketing is efficient |
| Marketplaces | Commission, fees, high returns | Needs a higher multiple or a separate price |
| Wholesale to boutiques | Retailer's own markup | Your wholesale price is often around half of MRP |
| Pop-ups and offline | Stall rent, travel | Good margin, low return rate |
If you plan to sell wholesale later, set an MRP that leaves room for a retailer's margin from the start.
Step 5: Lower your costs without cutting quality
- Avoid below-MOQ surcharges by pooling your order. Shared setup costs keep the per-piece price close to bulk.
- Reduce returns with an accurate size chart and honest photos.
- Push prepaid orders to cut COD costs and cancellations.
- Reorder winners instead of carrying slow stock you later discount.
Step 6: Sense-check against the market
Compare your price with brands at a similar quality level, not the cheapest option. If your number is higher, ask whether your fabric, fit, design and brand justify it, and make sure your product pages show why. If it is far lower, you may be leaving money on the table.
Want an accurate production cost to start your cost sheet? Request a quote from Voz Cruda.
Frequently asked questions
What is a good markup for clothing?
Many D2C clothing brands aim to sell at roughly three to four times their landed product cost, so there is room for marketing, returns, platform fees and profit. The right multiple depends on your channel and positioning.
What costs should I include when pricing clothes?
Include fabric and making, printing, labels, packaging, freight to you, sampling spread over the order, taxes, payment gateway fees, shipping to customers, returns, marketplace commissions and marketing cost per order.
How do returns affect clothing pricing?
Returns add reverse shipping, repacking and sometimes unsellable stock. Estimate your return rate and spread that cost across the orders you keep, especially if you sell on marketplaces.
Does ordering in small quantities raise my cost per piece?
Ordering alone below a factory's MOQ usually does. Pooled lots keep the per-piece price close to bulk because setup costs are shared across all buyers in the lot.
Should I price lower than competitors to start?
Underpricing is risky. It leaves no budget for marketing and is hard to raise later. It is usually better to justify your price with product quality, fit and brand.