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<p><a href='http://staging.investmentzen.com/data-visualization/the-cost-breakdown-of-pricing-a-shirt/'><img src='https://investmentzen-569f.kxcdn.com/blog/wp-content/uploads/2017/05/The-Cost-Breakdown-of-Pricing-a-Shirt.jpg' alt='The Cost Breakdown of Pricing a Shirt' width='800px' border='0' /></a></p>
<p>Via: <a href="http://staging.investmentzen.com/data-visualization/the-cost-breakdown-of-pricing-a-shirt/">InvestmentZen.com</a></p>
Estimated Costs of Producing a Shirt
- Raw Materials (ie: Cotton) – $0.60
- Spinning the yarn (from the cotton) – $0.40
- Shirt labor (dyeing, fabric-making, cutting, sewing): $1.00
- Shirt design: $0.25
- Design printing: $0.90
Total Cost of Producing the Shirt: $3.15
Estimated Costs Added by the Wholesaler
- Mark-up (usually this is around 75% of the cost of production): $2.36
- Tax & Duty: $0.27
- Warehouse & Storage: $0.27
- Shipping & Freight: $0.25
Wholesale Price: $6.30
Estimated Costs Added by the Wholesaler
- Mark-up (usually this is around the wholesale price of the shirt): $6.30
- Warehouse & Storage: $1.45
- Shipping & Freight: $0.95
Retail Price: $15.00
$15 Shirt Cost Breakdown by percentage:
- Materials (cotton and yarn): 6.7% ($1.00)
- Labor/Design: 14.3% ($2.15)
- Tax & Duty: 1.8% ($0.27)
- Warehouse & Storage: 11.5% ($1.72)
- Shipping & Freight: 8% ($1.20)
- Mark-Up: 57.7% ($8.66)