Fashion Pricing: A Guide For Your Brand
Whether you’re a new or seasoned designer, your fashion line needs to be priced right for consumers. Selling products with high-profit margins initially may dissuade people from trying your brand. On the other hand, pricing your products too low means you don’t break even, and even if you’re not in it for the money, you would like some returns for your hard work.
Here’s a fashion pricing guide to get it right.
Know Your Audience
The first step toward deciding a pricing strategy is understanding your target audience. These are the people you had in mind while designing your line. This is where your customer base will arise from. Thinking about their expectations, i.e., about how much they would want to pay for your products. This is how you can make an initial estimate for fashion pricing.
Customer expectations for a brand depend on the brand’s positioning in the market. Where does your brand lie on the fashion pyramid? There are fast-fashion brands that produce lines in bulk for mass consumption, then there are ready-to-wear and high-street brands that are pricier. At the top sit the luxury and haute couture brands which are expected to be the most expensive.
The production style of the fashion lines determines their standing on the pyramid. If you’ve launched fashion lines in the market under a brand name before, you can recognize your brand’s standing easily. For a first-of-a-kind fashion line, women’s clothing manufacturers in Los Angeles suggest looking at your production costs and exposure to make a decision.
The following pricing strategies are simple techniques commonly used by brands to decide the pricing for a fashion line.
This pricing method is solely dependent on the customer’s perception. Are you designing socks? A simple survey amongst your target audience will tell you what a customer is ready to pay for their socks. An efficient survey may even find answers for the minimum and maximum they can go to pay for socks.
For fashion pricing of this kind, your production cost must remain below these expectations to generate profit. It is beneficial to have this cost analysis before the product goes into production. The downside of such a system, however, is that it may not account for unexpected expenses during production.
Keystone Markup Method
The keystone markup method is a more efficient method that you can use for a healthy profit margin. Multiply your production costs by two to arrive at the wholesale price of your products. For retailers, double the wholesale price to ensure your supply chain makes up for the logistics of the middle while also ensuring a good profit by the end.
Fashion pricing is an important part of launching your line in the market. If you’ve chosen a good manufacturer, they can help you with your decision.
We are a men’s, women’s, and children’s clothing manufacturers in Los Angeles, that makes athletic wear, swimwear, and leather products for new and established fashion designers. Our fashion manufacturers give designers access to the latest industry methods and expert advice to help them bring their ideas to life. Set up an appointment today to get started.