How to Price a Clothing Brand: Markup, Margin, and What to Charge

Most new clothing brand founders price their first drop by guessing what feels fair to charge friends and early followers. That usually means underpricing, which caps the brand's ability to reinvest in the next design or run any paid marketing. Pricing should start from the base cost of the piece, plus a margin that actually funds the business. Here is the math broken out by product category.

The pricing formula: base cost, retail price, margin

Three numbers matter for every product:

• Base cost: what the piece costs before the brand adds its price. This is the VIP base price on the Pro Shops catalog, from $19.88 on tees.
• Retail price: what the customer pays, set by the founder with no restriction.
• Margin: retail price minus base cost. This is the brand's actual profit on the piece.

Default recommended profit is $10 per piece. That is a starting point, not a ceiling. Most established small brands charge more once the design has proven demand.

Margin table by product category

Product	VIP base	Typical retail	Margin
Cotton tee	$19.88	$28-35	$8-15
Premium triblend tee	$23.88	$34-40	$10-16
Comfort Soft Hoodie	$36.88	$55-70	$18-33
Champion Performance Hoodie	$45.88	$75-90	$29-44
Joggers	$40.88	$60-75	$19-34
Seamless leggings	$54.88	$78-95	$23-40

Hoodies and leggings carry the highest dollar margin per piece, which is why they matter so much to a small brand's bottom line even if tees sell in higher volume.

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Why underpricing hurts more than it seems

A $5 margin on a tee sounds fine until the founder factors in the time spent designing, photographing, and marketing the piece. At $5 margin, a brand needs 200 sales to clear $1,000. At $15 margin, the same $1,000 needs 67 sales. Pricing too low does not make a brand more competitive, it just means working harder for the same result.

When to raise prices

• A design sells out its first run: demand outpacing supply is the clearest signal a price is too low.
• The brand adds a premium blank: swapping a standard cotton tee for a heavier triblend justifies a higher retail price without changing the margin percentage.
• A limited or numbered drop: scarcity supports a higher price point than the standard catalog line.

See the starter product lineup guide for which blanks justify a premium price from day one.

Frequently Asked Questions

What is a reasonable minimum margin per piece?

Most small brands run $10-15 minimum on tees and $20 or more on hoodies. Anything below that leaves very little room for marketing spend or reinvestment.

Should pricing be the same across all products?

No. Price each product on its own base cost and perceived value. A premium hoodie supports a higher markup than a basic tee.

Does a higher retail price actually reduce sales?

Not always. A well-designed, well-marketed piece often sells at a premium price better than a cheap-looking piece sells at a discount.

How often should pricing be revisited?

Check pricing every 60-90 days, or immediately after a design sells out its expected run faster than planned.