BuildTheDreamBrand
Know your true costs, set prices that sustain your business, and stop leaving money on the table.
Most new founders calculate cost price as fabric + manufacturing. That is only the beginning. Your true cost includes every expense that gets that product into your customer's hands.
Product name:
| Cost Category | Detail | Cost Per Unit |
|---|---|---|
| DIRECT COSTS (per unit) | ||
| Fabric | £ | |
| Trims (buttons, zips, thread) | £ | |
| Labels (main, care, size) | £ | |
| Manufacturing / CMT | £ | |
| Printing / embroidery (if applicable) | £ | |
| Finishing (pressing, folding) | £ | |
| INDIRECT COSTS (per unit allocation) | ||
| Sampling costs (amortised) | £ | |
| Pattern / grading costs (amortised) | £ | |
| Tech pack / design costs (amortised) | £ | |
| Shipping from manufacturer | £ | |
| Import duty / taxes | £ | |
| Packaging (polybags, tissue, boxes) | £ | |
| Hang tags / brand packaging | £ | |
| OPERATIONAL COSTS (per unit allocation) | ||
| Photography (amortised) | £ | |
| Shipping to customer (average) | £ | |
| Returns / exchanges (average) | £ | |
| Payment processing fees (Stripe / PayPal) | £ | |
| Website / platform fees (per unit) | £ | |
| Marketing cost per acquisition (average) | £ | |
| TOTAL TRUE COST PER UNIT | £ | |
Once you know your true cost, use these formulas to calculate your wholesale and retail prices.
| Step | Calculation | Amount |
|---|---|---|
| True cost per unit | (from Section 1) | £18.50 |
| Wholesale price (x 2.3) | £18.50 x 2.3 | £42.55 |
| Retail price (x 2.2) | £42.55 x 2.2 | £93.61 |
| Rounded retail price | £95.00 | |
| Gross margin (DTC) | (£95 - £18.50) / £95 | 80.5% |
| Gross margin (Wholesale) | (£42.55 - £18.50) / £42.55 | 56.5% |
| Product | True Cost | Wholesale (x___) | Retail (x___) | DTC Margin % | Wholesale Margin % |
|---|---|---|---|---|---|
| £ | £ | £ | % | % | |
| £ | £ | £ | % | % | |
| £ | £ | £ | % | % | |
| £ | £ | £ | % | % | |
| £ | £ | £ | % | % | |
| £ | £ | £ | % | % |
These are the costs that catch founders off guard. Go through every item. If it applies to your business, factor it into your pricing.
See your full range margins at a glance. This tells you which products are your profit drivers and which are costing you money.
| Product | Retail Price | True Cost | Gross Profit | Margin % | Units Forecast | Total Profit |
|---|---|---|---|---|---|---|
| £ | £ | £ | % | £ | ||
| £ | £ | £ | % | £ | ||
| £ | £ | £ | % | £ | ||
| £ | £ | £ | % | £ | ||
| £ | £ | £ | % | £ | ||
| £ | £ | £ | % | £ | ||
| £ | £ | £ | % | £ | ||
| £ | £ | £ | % | £ | ||
| TOTAL | Avg % | £ |
Highest margin product:
Lowest margin product:
Average margin across range:
Any product below 50% margin? If yes, action needed:
Discounting erodes margin and brand perception. Use this framework to decide when discounts are strategic and when they are destructive.
| Factor | DTC (Direct to Consumer) | Wholesale |
|---|---|---|
| Selling price | Full retail: £ | Wholesale (50% of retail): £ |
| True cost per unit | £ | £ |
| Shipping cost to customer | £ | Buyer pays / included |
| Payment processing fee | £ | Usually invoice / bank transfer |
| Marketing cost per acquisition | £ | Lower (buyer orders in bulk) |
| Returns rate | Higher (5-15%) | Lower (1-3%) |
| Net margin per unit | £ | £ |
| Net margin % | % | % |
What % of revenue will come from DTC?
What % of revenue will come from wholesale?
Blended average margin target:
Is your pricing sustainable for both channels?
© BuildTheDreamBrand. All rights reserved. This template is part of the BuildTheDreamBrand Course.
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© BuildTheDreamBrand. All rights reserved.
This template is part of the BuildTheDreamBrand Course. Not for circulation, copying, or resale.