Business and Pricing How to Price Your Fashion Collection for Profit

You launched your line. Sales are trickling in.

Maybe DTC is going okay.

But when someone asks, “Do you sell wholesale?”

 …You do the math in your head and realize:

“If I cut my price in half, I’d be losing money.”

That’s a margin problem — and it’s one of the most common (and fixable!) issues I help fashion founders with.

In this post, I’ll show you:

• The difference between DTC and wholesale margins
• How to price your fashion collection for profit
• Common pricing mistakes
• How to adjust before your next production run
• Understanding Fashion Margins (Without the Math Headache)

Let’s start with some simple formulas:

DTC (Direct-to-Consumer) Pricing:

Retail Price = Cost of Goods × 2.5 to 3.0

You keep the profit

Covers marketing, shipping, overhead

Example: If your product costs $20 to make, your DTC price should be $50–$60.

Wholesale Pricing:

Wholesale Price = Cost of Goods × 2.0

Retail Price = Wholesale Price × 2.0

You sell to boutiques or other retailers

They mark it up for final sale

Example:
Your cost = $20
Wholesale = $40
Retail = $80

What’s “Keystone Pricing”?

Keystone = doubling your wholesale price to get retail.

Most stores expect this. If your prices don’t support it, they can’t work with you, even if they love your product.

Many founders launch DTC, then try to “back into” wholesale. That rarely works.

Instead: price for wholesale first — then adjust DTC.

Include:

• Fabric & trims
• Pattern + tech pack fees
• Sampling costs
• Packaging + labeling
• Shipping to you
• Duties or tariffs

Pro tip: Don’t forget labor, even if you’re sewing the first run yourself.

Worried about pricing too high? That’s normal — but dangerous.

Underpricing hurts your profits and your brand perception.

Pricing for profit = pricing for survival.

How to Rebuild Your Pricing Strategy (If You’re Already Selling)

If you launched DTC and realize your pricing doesn’t work for wholesale, here’s how to pivot:

• Recalculate your cost of goods (use our Margin Calculator)
• Test your product at a new price point
• Consider simplifying your design or adjusting materials
• Prep a new pricing sheet before approaching wholesale partners

How to Know If Your Pricing Is “Healthy”

Ask yourself:

• Does my product support both wholesale and DTC margins?
• Could I afford to pay myself and reinvest at this price?
• Would a buyer see my line and instantly understand my price point?

If not, it’s time to fix it. You don’t have to guess.

Download my pricing spreadsheet and plug in your real numbers. It’ll do the math for you, for both wholesale and DTC.

Download the Margin Calculator

Your prices aren’t just numbers — they’re your business model.

I help fashion brands like yours clean up their margins, adjust their pricing, and build collections that actually support growth.

Let’s make sure your next drop is profitable before it launches.