How much does production cost?!
How much does production cost?!
This is a question I am asked time and time again by clients. As I’m sure you realise by now, production costs can be difficult to pin down because there are many factors and moving parts involved in the process.
I’ve gone into these in more detail elsewhere, but to summarise: depending on the design and choice of manufacturer, the cost per unit could be anywhere from $10–$40. This means that for a five-piece collection, production could start from around $7,500 (based on a small MOQ of 150 units per style) and increase from there. Detailed designs and comprehensive tech packs are essential in order to obtain accurate costings.
You will need to determine what cost price you can afford by working backwards from the margin you want to achieve and your expected retail price.
The majority of start-ups I work with would say the entire process has set them back at least £15k (GBP). This figure typically includes marketing, admin, financing, web design, and other associated costs. Many brands use crowdfunding to reach this stage.
Below are some of the key factors that affect production costs, listed in no particular order.
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