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spacer HOW TO START A CLOTHING LINE
Researching a New Clothing Line
> Resources for Clothing Startups
> Estimating Startup Clothing Lines
> Funding Clothing Startups
Sampling & Estimating Clothing Lines
Prototyping & Manufacturing Clothing
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RESEARCHING A NEW CLOTHING LINE
  Estimating Startup Clothing Lines

Part of your clothing line research will involve determining what your garments will sell for at retail and working that back to the price you need to achieve to be profitable long-term. As a startup, you must realize that the products you will be competing with have the advantage of higher volumes and established supply chains. It is unrealistic to expect profitability in your first year of operation.

Your prices are defined by your channels of distribution, product differentiation, and saleability within retail price points. You can work backwards from retail by knowing that most retailers keystone (wholesale x 2) or even use wholesale x 2.5 to achieve their margins. Ultimately, as a wholesaler, it would be realistic to target a gross margin of 40%. Therefore, a garment that you believe should retail at $60 would be sold at wholesale between $20 and $25 and would be purchased by you from your manufacturer at between $14 and $16 including freight. Click here for an informative article on this topic.

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