Costing

What Is The Right Price For My Fashion Product?

What Is The Right Price For My Fashion Product?

It's no news that pricing your product right will have a big impact on your sales.

But what is pricing it right means? 

This question can be even harder to answer if you are just starting your fashion brand. 

There are few ways to determine the right prices of your fashion products even at that stage. It requires some research, but It all comes down to defining your market positioning, your specific target customer and the value of your product for that customer.
 

3 Fashion Brands that Kicked the Bucket - Learn Why

3 Fashion Brands that Kicked the Bucket - Learn Why

Another stale broccoli casserole?
A few more polite words with “the family”?
Too many “what a shames” and too many “I saw this coming”...
This is getting all too common. 
Seeing another promising fashion startup that has been laid to rest has really stirred me up.
And you know what?
 

What Scenario Should You Cost Your Fashion Product For?

What Scenario Should You Cost Your Fashion Product For?

As a start-up fashion brand, costing your product for the first time is one of the most challenging parts of your fashion business.

When you source a factory you will have their costs for making both a small run of your product (i.e. 50 units) and a bigger run (i.e. 200+ units). For many designers, the first season is experimental and you might not know exactly how many orders you will get. So the big question is: Should you price your product based on the cost of a small run or the cost of a big run? 

At What Level of Sales Will Your Fashion Business Make a Profit?

How many products will you need to sell in order to cover your cost and at what level of sales will your business make a profit?

To answer this you will need to calculate and find what is the breakeven point of your business.

Breakeven point (or breakeven analysis) is the point in which expenses are covered, and anything that is sold above that point means that your business is making a profit.

Calculating the breakeven point is done by defining the relationship between expenses and revenues and understanding how expenses/cost will change as sales increase or decrease. Let’s look at how it’s done.

The Most Important Step to Get the Best Results From Your Production

This week I read a very informative article on manufacturing and production and it made me think: “What is the single most important step to get the best results from your production? “

I once had a teacher who said that if we simply do our homework and study, the test will be a breeze! And he was right, it worked for me. The same concept easily translates to fashion production.

DESIGN WITH PRODUCTION IN MIND! I know how boring and limiting this part sounds for a creative person like you, but following this motto is the single, most important step to turn your creativity and talent into a BUSINESS! If you plan your production process while you design your product and think ahead about each step, re: the logistics, the cost, the timeline, etc. your production will be easy and will have no tricky questions or surprises.

To help you with that, here are 3 tips you should follow when designing your next season: 

5 Points to Consider When Pricing Your Fashion Product

5 Points to Consider When Pricing Your Fashion Product

Spring 2015 market is just around the corner, how is the sample making process going for you so far? Hopefully your collection is coming well and on time. A major next step for you is pricing your products right to make sure you are making a profit. So as you are getting your cost sheets ready and to help you avoid this bad experience here are 5 points to consider while costing and pricing your fashion line:

$200K sales in first season yet almost out of business! A true story

$200K sales in first season yet almost out of business! A true story

When starting a business, the unknown is bigger than the known. Where do I find….? How do I…? What is the best….? Are normal questions to have and having the right answers, answered by the right people for your business, will make the process smoother, more effective and much less expensive.

Congratulations on starting your own brand, what now?

About 10 years ago I was hired by a designer, for the sake of this story I will call him Mark, who by then had a very successful career as a creative director for big brands (RL, Nautica), to join and help him as he was starting his own brand. He had a very clear vision as to what the product should look like and the concept of his brand (since he’s done that successfully for these other brands for nearly 20 years).

But when it came to starting his own business there were many aspects that he wasn't familiar with. While working at these bigger brands, things such as sourcing, costing, developing, producing and selling the product where not an issue, or at least not issues that he had to deal with. This time he was starting as a small business with a limited budget