What the other costs added to the retail price?
How much mark-up is added by retailers?
The following cost breakdown chart gives answers to all of your questions.
Source: David Birnbaum. 2005. Source-it, Global material sourcing for the clothing industry. Hypothetical case study based on standard US costing. Retail mark-up includes R&D, design, marketing, head office costs, other costs.
Cost Heads
|
Amount ($)
|
Fabric
CMT (Cut-Make-Trim)
Quota Category
FOB Price (for Complete
garment)
|
3.00
2.00
1.80
6.80
|
Duty (19.8%)
Freight
Clearance and inland transport
LPD (Landed Duty Paid)
|
1.34
0.30
0.14
8.58
|
Private Label importer price Mark-up
Wholesale Price
Retail price mark-up
Retail Price
|
3.68
12.26
18.39
30.65
|
Source: David Birnbaum. 2005. Source-it, Global material sourcing for the clothing industry. Hypothetical case study based on standard US costing. Retail mark-up includes R&D, design, marketing, head office costs, other costs.