A cost sheet (costing sheet) is a detailed breakdown of every cost that goes into producing a garment - materials, labor, overhead, and profit margins. It's the financial blueprint of your product.
What's on a Cost Sheet
- Materials - fabric, trims, and labels with consumption and unit prices
- Labor - cutting, sewing, and finishing minutes multiplied by the rate
- Overhead and factory profit - the factory's operating margin
- Freight, duties, and insurance - getting goods to your warehouse
- Target prices - wholesale and retail with margin calculations
How Brands Use Cost Sheets
Cost sheets drive every financial decision: negotiating with factories, setting wholesale prices, deciding which styles make the line, and tracking whether you're hitting margin targets. A style without a cost sheet is a gamble.
Target Costing
Smart brands work backward: start from the retail price customers will pay, subtract retail and wholesale margins, subtract freight and duties - and what's left is your allowable garment cost. Design to that number.
FAQs
- What's a healthy margin for a clothing brand?
- Wholesale is typically 2-2.5x garment cost; retail is 2-2.5x wholesale. Varies by category.
- Should I share my cost sheet with the factory?
- No - keep target costs internal. Share specs, not your margins.
- How often should cost sheets be updated?
- Every season at minimum, and whenever material or labor costs change.
Glossary: see the full fashion glossary for more apparel industry terms.