Calculating Your COGS: A Deep Dive into Apparel Pricing Strategies

Calculating Your COGS: A Deep Dive into Apparel Pricing Strategies

The ability to accurately forecast and control your pricing starts with Calculating Your COGS (Cost of Goods Sold)—the true operational expense of manufacturing one finished garment. This is the single most important financial calculation for determining your profitability, guiding sourcing decisions, and ensuring your brand remains viable in the highly competitive UK and US markets. This deep-dive guide breaks down the complex components of COGS and outlines the strategic formulas for setting a sustainable retail price.

Phase 1: Defining COGS and Its Three Core Pillars