How does one make sure one's business will make a profit?
Here in this post is pricing information from Sewing Techniques from the Fashion Industry.
Sewing Techniques from the Fashion Industry is an upgrade of Design Room Techniques, the introductory sewing book for the Continuing Professional Education program offered previously at the two universities in Philadelphia that have fashion programs.
Before determining the wholesale price one should charge for one's sewn product one should determine how much one needs to make an hour. Use this chart to do that.
|Sewing procedures involved in making the garment need to be timed. This chart shows|
how to determine the time needed to make a blouse.
(Chart 3-9, page 34, Sewing Techniques from the Fashion Industry)
|The fabric and notions' cost needs to be determined. Years ago some companies tripled |
the total cost of materials used in the making of a garment to give the wholesale price.
Now the price is often whatever the market will bear.
(Chart 3-10, page 35, Sewing Techniques from the Fashion Industry)
|Use this chart to determine the wholesale price for the sewn product.|
(Chart 3-12, page 37, Sewing Techniques from the Fashion Industry)
.40x = 28.50
x = 28.5/.4 = $71.20
In the chart above is an example of how to use a company’s percentage markup to determine a garment’s wholesale price. This company’s cost of materials is 40% of the wholesale price.
Determining wholesale prices:
If the company’s mark up (the reciprocal cost) is 60% of the wholesale price, then the cost of materials is 40% of the wholesale price.
For example: let’s say the cost of the materials needed to make a blouse is $28.50, 40 percent of the total wholesale cost. Divide $28.50 by .4 to give the wholesale price of the blouse, $71.20,
To determine the reciprocal price subtract $28.50 from $71.20 to give $42.70, the additional costs involved with manufacturing the blouse and running the business
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