COG's (COST OF GOODS):

The (COG’s) will depend on the design, quantity, location of production and specification and we need to discuss this in much more detail before we start the process, so we make sure the fabrics, factory, features, and components are designed or selected to hit your price point and your target market. It’s a bit like designing a house, without understanding the budget and customer, you will end up with an amazing design that you can’t afford to build or isn’t exactly what you were looking for.

It’s very hard to give an accurate estimation of the COG’s without running over the brief in fine detail, however there is a simple formula below that gives you an idea. Working back from your target RRP is how the industry works so you need to have a good idea of where your brand sits in the market and what price points each style will retail for-:

The below COGs are based on Far East production, using performance local fabrics.

1. Work out your RRP (Recommended retail price)
2. Divide this by 4 and this will give you an estimated ex works price from the factory.
3. Add on shipping and duty to get the goods into your country. Duty and Shipping varies depending on which country the goods are being imported into.

If you are looking for European production, then use the following-:

1. Work out your RRP (Recommended retail price)
2. Divide this by 2.65 and this will give you an estimated ex works price from the factory.
3. Add on shipping and duty to get this into your country. Note - If we source the fabrics and components from the EU, then the duty should be zero rated. Duty and Shipping varies depending on which country the goods are being imported into.

Once you have launched and gained some sales traction, you can slowly increase the volume you order from the factory which will intern improve your margins.