How to Price Your Clothing: From Landed Cost to Wholesale and Retail Price
The factory price on your quote is not what the garment costs you, and it is certainly not what you should sell it for. Many new brands set prices by looking at competitors, then discover after the first order that freight, duty, packaging, returns and marketing ate the margin. This guide walks through the full calculation, from factory price to landed cost to wholesale and retail price, with a worked example, so you know your real numbers before you place an order.
Step 1: Know Your Landed Cost
Landed cost is what one garment costs you once it is in your warehouse, ready to sell. It includes the factory price plus everything it takes to get the goods to you:
- Factory price (FOB or ex-factory), including branding and labels
- Freight and insurance
- Import duty and taxes in your market
- Customs broker and port fees
- Sampling and testing costs, spread across the order
- Packaging, such as polybags, hangtags and cartons, if not included
Divide the total by the number of sellable pieces to get cost per unit. Duty rates, tariffs and shipping change, so confirm current figures with a customs broker. Our guides for US brands, UK brands, Canada, Australia and the UAE explain the duty and tax side, and our US tariff briefing covers the 2026 changes.
Worked Example (Illustrative Numbers)
| Line | Per piece |
|---|---|
| Factory price | $8.00 |
| Freight and insurance | $0.60 |
| Duty and taxes | $0.90 |
| Broker and fees | $0.30 |
| Landed cost | $9.80 |
These numbers are made up to show the method. Replace them with your own quotes.
Step 2: Set Your Wholesale and Retail Price
A common rule of thumb in apparel is keystone pricing: wholesale is about twice your landed cost, and retail is about twice the wholesale price. In the example above, that gives:
| Price | Calculation | Result |
|---|---|---|
| Landed cost | Factory price plus shipping, duty and fees | $9.80 |
| Wholesale price (about 2x) | $9.80 x 2 | about $19.60 |
| Retail price (about 2x) | $19.60 x 2 | about $39.20 |
It is a starting point, not a law. Premium brands often price higher; value brands price lower. The market, your brand and your customer decide the final number.
Markup vs Margin: Don’t Mix Them Up
Markup is how much you add to cost: (price minus cost) divided by cost. Margin is how much of the selling price is profit: (price minus cost) divided by price. A 100% markup (double the cost) is only a 50% margin. Brands often quote one when they mean the other, which causes expensive mistakes.
Step 3: Count the Costs Nobody Puts in the Quote
- Returns and exchanges. Especially high for fit-sensitive items and with cash on delivery in some markets.
- Payment and platform fees on every online sale.
- Marketing and customer acquisition. Ads, content, samples to influencers.
- Outbound shipping and packaging to your customer.
- Unsold stock and discounts. Not everything sells at full price.
- Your own time and overheads: tools, storage, software.
After these, a garment that looks like a 50% margin on paper may leave a much smaller profit. Work out your break-even price first, then your target margin on top.
How to Lower Your Costs Without Hurting Quality
- Choose the right fabric weight. Heavier fabric costs more in yarn and freight. See our GSM guide.
- Simplify the design. Fewer trims, fewer panels and simpler branding cost less.
- Order at the right volume. Price per piece usually falls as quantity rises. See our MOQ and pricing guide.
- Compare landed cost, not factory price. A cheaper quote can end up dearer once freight and duty are added.
- Avoid rework. A complete tech pack prevents costly sample rounds. See our tech pack guide and sample vs bulk guide.
A Simple Pricing Checklist
- Get a written quote, and ask what is included.
- Add freight, duty, taxes, broker fees and packaging to reach landed cost.
- Estimate returns, payment fees, marketing and discounts per unit.
- Set a wholesale price and a retail price using your target margin.
- Test the retail price on a small first run, then adjust.
Frequently Asked Questions
What is landed cost?
The total cost of one garment once it reaches your warehouse: factory price plus freight, insurance, duty, taxes, broker fees and other import costs.
How much should I mark up clothing?
Many brands start with about 2x landed cost for wholesale and 2x wholesale for retail, then adjust for their market, brand positioning and costs.
What is the difference between markup and margin?
Markup is profit as a percentage of cost; margin is profit as a percentage of the selling price. A 100% markup equals a 50% margin.
Can you give me a landed-cost quote?
Yes. Tell us your product, quantity, destination and preferred terms (FOB or delivered duty paid), and we’ll quote clearly on what is included.
Want a clear quote to build your numbers on? Send a wholesale inquiry or start your private label project.