PRICING AND INVENTORY
How to Track Cost Per Garment
Cost per garment is what each sellable item really cost you once stock, transport, preparation and other costs are shared out. Without it, pricing and reordering are guesswork.
You do not need accounting software: a spreadsheet with a few columns is enough.
THE CALCULATION
Cost per sellable garment.
Share costs only across items you can sell.
Cost per garment = total order costs ÷ number of sellable garments.
- Include stock, transport, sorting, cleaning and packaging for that order.
- Exclude items you discard or donate from the count, so their cost is carried by the sellable ones.
- Running costs such as rent are better tracked monthly, alongside, rather than per order.
ILLUSTRATIVE EXAMPLE
One order, worked through.
Fictional figures in units of your own currency.
Example only.
| Item | Value |
|---|---|
| Stock | 4,000 |
| Transport | 500 |
| Sorting and cleaning | 300 |
| Total order costs | 4,800 |
| Items received | 320 |
| Not sellable | 20 |
| Sellable garments | 300 |
| Cost per garment | 16.00 |
SPREADSHEET LAYOUT
Columns to keep.
Order ID and date
Links each garment to the order it came from.
Category and grade
From sorting and inspection.
Cost per garment
From the order calculation above.
Price and date listed
Shows how long items take to sell.
Sale price, fees and date sold
Gives profit per item and sell-through.
USING THE DATA
Decisions it supports.
- Set prices above cost and break-even; see pricing second-hand clothes.
- Compare orders and categories by profit per garment.
- Spot slow categories with sell-through by category.
NEXT STEP
Comparing a new order?
With your cost-per-garment records, a quotation shows quickly whether an order fits your prices.
General guidance for planning purposes. Examples are illustrative; outcomes depend on your own market, stock, prices and costs.