In a business the cheaper it is to have the item made the more of a profit you make which is of course important to succeeding otherwise you will only break even and it would be pointless having your own business. So I found out how much it costs one of the small independent brands to have their garments printed or embroidered and labelled so that I could compare the price of what it costs for them to get it made and how much they sell it for.
So for one t-shirt the embroidery and the cost of the t-shirt is £3.80 all together but as the customer supplies their own t-shirts it only costs them £1.90 not including VAT. All customers supply their own labels but to have them sewn on it is 5op a label this brand has two labels so that costs them £1.00 they also have their garments bagged and the price of the bags and having them folded and bagged is 12p.
So the total cost of 1 t-shirt for this brand would be £3.02, the t-shirt is then sold for £26 which makes for a profit of £22.98 this price does not include possible travel costs, website costs ect.
I thought it was a useful experience learning about the costings on the garments as this can help me in the future working out my costings for my level 5 collection and in the future with my own brand.