How to Price Your Clothing Line for Wholesale and Retail

Pricing is where most new brands either leave money on the table or price themselves out of the market. The good news: pricing a clothing line for wholesale and retail follows a small set of rules. Once you understand them, you can quote a buyer with confidence and know whether a retail price actually works.

The two prices you need to set

Every style needs:

• Wholesale price — what you sell to boutiques and retailers (they mark it up to retail)
• Retail price (MSRP) — what the end customer pays

These two numbers are linked. If one is wrong, the other won't work.

Start with your factory cost (FOB)

Your factory cost (often called FOB price) is the per-unit cost to produce the garment — fabric, trims, labor, sampling amortized, packaging. This is your cost of goods sold (COGS).

Example: A hoodie costs $18 FOB.

The standard wholesale markup

Retailers expect to buy at roughly 50% of retail (a "keystone" markup). So:

> Retail price = Wholesale price × 2

That means if your wholesale is $36, your retail should be $72.

If wholesale is too high for the market, your cost is too high — not your markup.

Margin-on-cost vs. keystone: know the difference

• Keystone (2x markup): Retail = wholesale × 2. Industry standard for most apparel.
• Margin-on-cost: Retail = cost × (1 + margin %). Useful for setting margin targets on a per-style basis.

A common brand target is 2.5x to 3x markup on cost so your brand margin survives retailer discounts and returns. For a $18 FOB:

• 2.5x markup on cost → retail $45 → wholesale $22.50
• 3.0x markup on cost → retail $54 → wholesale $27

Sometimes that math doesn't fit keystone. That's a signal your cost is too high, or your category commands a different markup (denim and outerwear often do).

Don't forget the costs beyond the factory

Your true cost per unit includes:

• COGS (FOB price)
• Duty and freight (if importing)
• Warehousing and fulfillment
• Returns and damages allowance (~3–5%)
• Marketing and sales commissions (10–15% on wholesale is common)

A retailer quoting you at keystone doesn't absorb these — you do.

The 4-step pricing workflow

1. Get an accurate FOB quote. Use a finished tech pack, not a guess. 2. Add landed cost. Add freight, duty, warehousing, and a returns buffer. 3. Set retail at 2.5–3x landed cost. This is your target MSRP. 4. Set wholesale at 50% of retail. This is the price you quote boutiques.

Test it against the market

Before you commit, check three things:

• Comparable brands. What are similar brands charging at retail for similar garments?
• Retailer expectations. Will the boutique you're targeting accept a keystone structure?
• Your margin at full sell-through. After retailer discounts, returns, and unsold inventory, are you still profitable?

If any of these don't work, the place to fix it is COGS — not the markup math.

When to bring in a consultant

If you're getting inconsistent quotes, struggling to hit margins, or figuring out whether a fabric upgrade is worth the retail change, pricing is usually where the conversation lands. At Los Angeles Fashion Consulting, we run brand-pricing reviews as a standing part of our launch work — telling you which costs matter and which are leakage.

📞 (310) 597-4142 — or [book a free consultation online](https://losangelesfashionconsulting.com/contact).