Pricing for Profit
Stop guessing. Learn the exact markup formula so your brand actually survives.
You're not bad with money. You're not 'just a creative.' You were probably never taught how to price properly. This chapter fixes that.
The True Cost of Making a Product
Beyond unit price, include: pattern cutting, tech pack costs, sample costs, sample shipping, import duties/taxes/customs (15-27%), packaging, photoshoot costs, website/platform fees, transaction fees, and your time.
The Pricing Formula
Cost per item × 2.5-3 = wholesale price. Wholesale × 2-2.5 = retail price.
Example: £30 cost → £60-75 wholesale → £120-150 retail.
Never compete on price with fast fashion. Compete on story, quality, community. There will always be someone cheaper. You cannot win that game.
The Psychology of Pricing
People don't just pay for fabric and stitching. They pay for design, story, fit, experience, values. If you underprice to be liked, you teach people your work is low value. It's very hard to climb back up.
Your brand cannot survive on compliments. It needs cash flow.
When to Discount (and When Not To)
Discounts help: end-of-season clearance, first-time buyer incentive (10% off, email signup). Discounts hurt: constant sales that train customers to wait, panic discounting when sales are slow. You are allowed to hold your price.
Chapter 6 Templates & Worksheets
Price for Profit Calculator
Input costs, apply markup formula, see retail price and margin instantly
Hidden Costs Checklist
28-item checklist of costs founders forget when pricing
Wholesale vs DTC Pricing Guide
How to structure dual pricing without cannibalising your own sales
Margin Analysis Spreadsheet
Track blended margin across your entire range
Your Action Step
Take your hero product. List every single cost involved in making, shipping, and selling one unit. Apply the formula: cost × 2.5 = wholesale, wholesale × 2 = retail. If the retail price feels too high, reduce costs — don't reduce price.
Want all 12 chapters + 40+ templates?
Get Full Course Access