8 Secrets To Clothing Production Pricing From A Factory Owner

8 Secrets To Clothing Production Pricing From A Factory Owner

As a sewing factory owner, I understand the intricacies involved in costing a garment for production.

It's not just about stitching fabric together; it's a complex interplay of various factors that ultimately determine the price tag of a piece of clothing.

For fashion startup owners venturing into the world of sewn manufacturing, understanding these elements is crucial for designing products that meet customer needs while also optimizing costs.

In this post, I'll shed light on eight key components that influence the cost of garment production, empowering you to make good business decisions and achieve success in our competitive fashion industry.

Material Selection

The choice of fabric is paramount in determining the overall cost of a garment.

Premium fabrics inevitably come with a higher price tag, while lower-quality materials might compromise the perceived value of the product.

Balancing quality with affordability AND availability of materials is essential in meeting both customer expectations and budget constraints.

Production Costs

Labor is a significant portion of the production cost.

From pattern making to cutting, stitching, and finishing, skilled labor is indispensable in ensuring the quality of the final product.

Labor costs can vary depending on factors such as location, expertise required, and production volume.

Optimizing production processes and considering outsourcing options can help manage labor expenses effectively. This starts with good communication and transparency by both client and factory.

The best way to create clear lines of communication is through relationship building by honestly sharing client goals.

More Business Resources from Satsuma

Overhead Expenses

Beyond direct labor and material costs, overhead expenses encompass various operational costs, including rent, utilities, equipment maintenance, and administrative expenses.

These expense are distributed across the production units, impacting the overall cost per garment. 

Production Volume

Economies of scale play a pivotal role in garment production costs.

Higher production volumes often result in lower per-unit costs due to the spreading of fixed expenses over a larger output.

However, startup owners must strike a balance between meeting minimum order quantities and avoiding excess inventory to optimize cost efficiency.

Supply Chain Management

‘Supply chain’ now sounds like jargon, but really it’s the backbone of any successful sewn goods company. The efficiency and stability of your supply chain directly influences production costs.

Timely procurement of materials, strategic partnerships with suppliers, and effective inventory management contribute to cost optimization.

Additionally, factors like shipping costs and import duties should be factored into the overall cost calculation.

Quality Control

Maintaining quality standards is non-negotiable in the fashion industry.

Investing in robust quality through factory selection and finishing work by the brand control measures helps identify and rectify defects early in the production process, preventing costly reworks and product recalls. 

Customization and Complexity

The intricacy of garment design directly impacts production costs.

Customized features, intricate detailing, and complex construction techniques require additional time and resources, driving up the cost per unit.

Striking a balance between design innovation and manufacturing feasibility is essential to optimize costs without compromising creativity.

Sustainability Practices

With growing consumer awareness, sustainability has become a key consideration in garment production. Incorporating sustainable materials, eco-friendly processes, and ethical labor practices may entail higher initial costs but can yield long-term benefits in terms of brand loyalty and market positioning.

Adopting sustainable practices aligns with evolving consumer preferences and regulatory requirements.

Understanding these factors empowers fashion startup owners to make informed decisions at every stage of the garment production process.

By carefully analyzing the cost implications of material selection, labor, overheads, production volume, supply chain management, quality control, design complexity, and sustainability practices, entrepreneurs can strike a balance between meeting customer expectations and optimizing manufacturing costs.

Embracing innovation, collaboration, and continuous improvement is key to thriving in the dynamic landscape of the fashion industry.

As you start or continue on your journey as a successful fashion entrepreneur, leverage these insights to navigate challenges, seize opportunities, and build a strong and sustainable fashion brand. 


Today is a gift. Let's put a bow on it!
Find creative and sustainable ways to make family life a delight! Sharing modern etiquette that kids will enjoy.
💕 jennifer

sign up for Satsuma's email newsletter