Garment costing: how to build a cost sheet and set a price
A simple garment cost sheet: fabric, trims, labour, decoration, packaging, freight and duty. How to estimate landed cost per piece and work back to a retail price.
Updated 1 October 2026 · By Hem Apparel
Before you set a price you need to know what one finished garment actually costs you, delivered to your door. A cost sheet adds every cost line to give a landed cost per piece.
The cost lines
| Line | What it covers |
|---|---|
| Fabric | Price per metre × consumption, plus wastage |
| Trims | Rib, thread, zips, buttons, drawcords, tapes |
| Labels and hangtags | Main, size and care labels, hangtag, string |
| Cut, make and trim (CMT) | The factory's charge for cutting, sewing and finishing |
| Decoration | Screen print, DTF, embroidery, washing or dyeing |
| Packaging | Polybag, stickers, cartons |
| Sampling and development | Samples, pattern making, any one-off setup, spread over the order |
| Freight and insurance | Shipping from the factory to you |
| Duty and taxes | Import duty and VAT or sales tax where they apply |
| Factory margin | Often built into the quoted price |
Example structure
Do the sum per piece, using your own quotes. For a T-shirt, add fabric cost, trims, labels, CMT, print, packaging, development cost per piece, freight and duty. The total is the landed cost. Always add a small buffer for defects, price changes and exchange rates.
From landed cost to price
- Wholesale price is often set at around two to three times landed cost, depending on the brand and channel.
- Retail price is commonly about double the wholesale price, the traditional 'keystone' markup.
- Direct-to-consumer brands sell at retail but also pay for marketing, shipping to customers, returns, payment fees and platform fees.
- Compare your price with similar brands to check it is realistic.
These are common rules of thumb rather than fixed rules, and margins vary by category and market.
How to lower cost without lowering quality
- Simplify the design: fewer panels, fewer trims and fewer colours.
- Use a lighter or stock fabric where the design allows.
- Increase quantity per style, since setup cost is spread over more pieces.
- Choose a decoration method that suits your volume.
- Make sure the tech pack is complete so quotes are accurate and there are no surprises later.