How to price your clothing correctly for your clothing business

How to price your clothing correctly

As you are here, reading this article. We guess either you are an urban clothing vendor, or you are planning to create one. Pricing the products is one of the toughest things to do in any business. Specially in the boutique business it gets a whole lot tougher. We understand the struggle behind hitting that sweet spot where the pricing of the products is well accepted by your target audience. This article will guide you to price the products of your clothing brand and avoid common mistakes while doing so.

To effectively serve the market place. The fashion industry can be split into two categories; Retailers and Brands.


  • Try to clinch on the mindset of the target consumer segments, for a long-term goal so that every time any consumer from the target consumer cluster plans on buying a product. They think about visiting the shop even if they just want to “Check them out”.
  • Have enough understanding on the psyche of their shoppers. So that they can have dynamic and variety of clothing line to cater to


  • Have their own story and distinct characteristic which is represented through their product collection
  • Usually do not have the resources to have a dynamic collection, that’s why they focus on one product vertical

Now that you are clear of the segmentation now let’s jump into the s you suggestions that would help you in setting up the prices.

Keystone Mark up

This is a pricing maneuver. For example, you bought clothes from a wholesale clothing vendor like Mir Apparel. Now, you have bought products on the price of $20 you will be selling the products on the price of $40. This is the multiplication of the sum in every stage till the product reached in the hand of the consumer. However, this model has a huge flaw as it does not take variables apart from manufacturing factors into account for example the cost of shipping. Pre-production design cost, promotional cost etc.

Absorption Pricing Model

Absorption pricing model is a model that takes other factors into consideration. We recommend you giving this price model a consideration. The calculation involves;
Cost price= Production cost per unit + (Total overheads +admin expense) / Number of units produced. This is the wholesale price, now multiply by 2 or 2.5 this will give you the Recommended Retail Price (RRP)

Choosing your market position

Your pricing of the products is often dictated by the market position you want to reside in.

Luxury Pricing

It is the setting up of price for the high-end customers. If your products are premium and you are aiming for your shopper’s loyalty towards your brand you can ask for premium price as well. As long as you are getting value for money.

Middle Market Pricing

It is the model where you balance pricing and quality of the products. As long as the customers can justify the asking price for the quality of products they are being offered you can have a band of loyal customers who will prioritize your brand while buying clothes.

Budget Pricing

In this segment you will be aiming for customers who just want affordable clothes. They will not be looking for a product that will last a life time. But they just want products which are affordable yet trendy. Although you will set a lower pricing. Nonetheless, you will be aiming to customers who are big in numbers and will be loyal till you provide good services

Discounts If you are planning to grab attentions of the consumers and planning to provide a lot of sales make sure you ask higher price on non-sale products. Because, if once the customers get used to sales. Ther will be no going back from your perspective and this can harm the business more than it helps

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