How to Calculate Apparel Production Costs & Margins: FOB Pricing, Shipping & Landed Cost Guide
The financial blueprint for apparel brand founders. Learn how to calculate Free on Board (FOB) factory costs, sample fees, air cargo freight, customs duties, and retail markup margins for healthy 65%+ profitability.
Most clothing brand failures stem not from bad design, but from poor unit economics. Understanding landed cost calculation—incorporating FOB unit manufacturing, air cargo freight, import tariffs, and packaging trims—ensures your brand maintains healthy 65% to 80% gross margins.
1. Landed Cost Formula
Landed Unit Cost = (FOB Factory Price) + (Per-Unit Air/Sea Freight) + (Customs Duty & Tariffs) + (Branded Packaging & Trims). By manufacturing direct with Sialkot factories like GloryZone, you eliminate intermediate agents and brokers, saving 30–40% on unit production.
Frequently Asked Questions (FAQs)
What retail markup should a direct-to-consumer apparel brand target?
Successful DTC fashion brands typically aim for a 4x to 5x markup on landed cost (e.g., a hoodie that costs landed should retail for to ).
Direct apparel manufacturers and technical pattern masters in Sialkot, Pakistan. Specializing in bespoke fabric milling, computerized embroidery, and private-label exports worldwide.