How to Determine The Price For Your Business/Service:
Our price calculator is designed to be simple and easy to use. It covers everything you need to price your clothing boutique
We hope this calculator helps you make more money for your business.
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How To Price Your Clothing
One of the most challenging aspects to starting a clothing boutique is determining how much to charge for your clothing.
When businesses under-price their product, this can be extremely detrimental to their bottom line and reputation.
Often times, businesses under-price their products to drive demand and volume, but that last thing you want is for customers to view your product/service as "cheap." Additionally, this can have a big impact on the type of customer you attract, which can be difficult to recover from.
On the other hand, when businesses over-price, this tends to be just as damaging to the business.
When customers buy, it's likely that they will explore the internet and look at other competitors to ensure they're getting the best value + deal. This is why it's so important that you research your competition and understand where you land in the marketplace.
Here are some factors to consider when pricing your product:
Understand your customer
It's important that out of the gates, you identify the type of customer you want to attract and how much they're willing to pay for your service. One great way to do this is by surveying your customers. Here are some important items you'll want to takeaway:
- Customer demographic: Age, gender, location, etc.
- Buying habits of your customer: What they buy + when they buy
- Level of price sensitivity with your customer
All of these segments will help you identify the type of customer you're attracting and how to price your product accordingly.
Understand your costs
When pricing your clothing, it's critical that you first identify all of your costs and consequently mark up your clothing so you can factor in a profit.
The actual cost of your clothing may include things like:
- The actual cost to make the product (ie. raw materials, supplies, manufacturer).
- Shipping + overhead fees
- Operating costs to run your business
You may want to consider creating a spreadsheet with every single expense involved in operating/owning your business. This will give you an idea as to what you need to generate in order to at the very least, break-even and will help you price your products to factor in a profit.
Create revenue goals
When determining the price of your clothing, you'll want to create goals for revenue + how much profit you want your clothing boutique to make.
This process is simpler than you may think:
- Think about your breakeven cost (by completing the above step).
- Create a revenue goal based on your break-even cost
- Evaluate the # of items you plan to sell in a given period (make sure this is a realistic number)
- Divide your revenue goal by the number of items you plan to sell
This figure will help determine your estimated price per product in order to meet your revenue goals.
Evaluate your competition
The last piece in determining how to price your clothing is by simply looking at your competition.
The best way to do this is by finding like-minded businesses that offer product(s) with similar perceived value. Then, you can compare prices of the different businesses and determine where your clothing fits best in the marketplace.
All of these factors play an equal part in pricing your clothing, so it's important you evaluate each one individually to come up with an accurate price that will help optimize your business from the start.
More Tips On Pricing Your Clothing
Lauren Costanza, founder of Bluminary provides us with a detailed spreadsheet of all of her costs associated with running her business:
I knew this would be a self-funded adventure, and I set aside $3,000. During the first three months, I had a detailed spreadsheet where I tracked where the money was going and what was going toward products versus researching and developing new products.
The spreadsheets involved columns and rows of numbers to craft a budget and gain an understanding of how much would need to be invested at each stage of the process - from gathering supplies to building a website, and shipping materials.
Thanks for reading. We wish you success in your business endeavors.
Examples of a successful clothing boutique
8. The Kewl Shop ($1.8M/year)
Sasithon Bella (from Michigan, USA) started The Kewl Shop over 9 years ago.
Hi there, my names Sasithon, or Sasi for short and I run The Kewl Shop together with my husband, Charles. I’m Thai and spent my formative years in Bangkok, the capital of Thailand. Charles is British.
It took us three and a half years to sell 10,000 dresses, our first $1m. In 2019 we expect to sell 10,000 dresses by September. It’s been an exciting journey.
9. Blush Boutique Co ($300K/year)
Emilie Casseday (from Greeley, Colorado, USA) started Blush Boutique Co ago.
Hello there! My name is Emilie Casseday and I own and run Blush Boutique Co in historic downtown Greeley, Colorado. Blush is a boutique full of clothes, home goods, jewelry, bath and body products and more. The goal was to have a highly curated and beautiful space full of quality products where you can find something for yourself and someone else as well. One of the most beautiful things that have evolved out of becoming a brick and mortar shop is the community. While first and foremost we are retail space, Blush has an amazing community of women and men. We host events, classes, meetups and more and the relationships that have evolved from that have been an incredible blessing.
Blush started as a humble idea between myself and a friend that quickly went from thought to action. We opened Blush in my basement in 2017 with just a few pieces of clothing, some fun jewelry, and a whole lot of hope. We quickly grew in customers and needed a new space and began to talk brick and mortar. My partner had to step away but I geared up to move into an actual space in our downtown and we continue to grow. Blush is now an established business in the downtown community in Greeley and we are going on our 4th year in business and we aren’t slowing down!
10. Boutique Rye ($120K/year)
Gia Paddock (from Phoenix, Arizona, USA) started Boutique Rye over 4 years ago.
Hi everyone, my name is Gia, and I am the owner of Boutique Rye. We are a women’s clothing and accessories boutique that is all online!
We have anywhere from clothes that are appropriate for work or clothes that will make you turn heads on a night out on the town. I try and buy clothes with many different styles in mind. I'd like to think that we are a one-stop shop for a diverse group of women!
11. Jess Mi Boutique ($6K/year)
Jess Michelle (from Seattle, Washington, USA) started Jess Mi Boutique ago.
Hi everyone! My name is Jessica Carter, popularly known as Jess Michelle, and I am the founding owner of Jess Mi Boutique. I cater to women of all shapes and sizes on more of the dressier side than casual.
In today’s market, I easily make about $500 a month in sales compared to barely $75 per month when I started. My business went from something that was just on Facebook to now a wardrobe necessity for events such as annual hair and beauty shows across the Seattle-Tacoma Metropolitan area!
12. New Era of Style ($0/year)
Savitra (from Smyrna, GA, USA) started New Era of Style ago.
Hello! My name is Savitra and I am the owner of the influential online boutique New Era of Style, LLC. New Era of Style is a mid-priced online boutique that is dedicated to catering to the fashion needs of working professional men and women.
With New Era of Style, LLC you “FASHION ON PURPOSE.” We take pride in pouring into our customers and the community. We want to inspire others to go for the goals in which they have set for themselves. Throughout the year we find various ways to give back to the community as well as help others in accomplishing their goals.
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