The cost to produce a single piece of clothing can range from as low as $5 for a basic printed t-shirt to over $150 for a complex, small-batch garment. There is no single answer, as the final cost per piece is a sum of fabric, labor, trims, and the scale of production. For a brand launching on Shopify or BigCommerce, understanding these variables is the key to pricing profitably.
Unlike the fixed monthly cost of your ecommerce platform (be it Shopify, Wix, or Magento), production costs are variable and directly impact your profit margin. A clear grasp of this breakdown is what separates hobbyists from sustainable businesses.
The Core Components of Clothing Production Cost
The final cost of a garment, known as the FOB (Free On Board) cost, is built from several key components. Whether you’re producing 50 units or 5,000, you must account for each of these elements.
Fabric: This is often the largest cost. Price depends on material (e.g., basic cotton vs. organic cotton or technical fabric), weight, and quantity purchased. Buying 50 yards costs significantly more per yard than buying 1,000 yards.
Trims and Labels: Every additional element adds cost. This includes zippers, buttons, drawstrings, custom woven labels, hang tags, and even specific thread colors. These “small” details can add $1 to $5+ per garment.
Labor: The cost to cut and sew the garment. This is typically calculated per minute or per piece. Complex designs with multiple panels and details (like a structured jacket) have far higher labor costs than a simple t-shirt or hoodie.
Pattern Making & Sampling ($500 – $2,000+): Before production, a tech pack and pattern must be created. Multiple samples are made and revised to perfect the fit. This is a large upfront cost that is amortized over the entire production run.
Fixed Costs (MoQ & Shipping): Manufacturers have Minimum Order Quantities (MoQs) per style/color. A higher MoQ spreads fixed costs (like pattern making) over more units, lowering the cost per piece. Don’t forget to factor in shipping from the factory to your warehouse.
FAQs
What is the average cost to produce a clothing sample?
A first sample can cost $150 to $500+ per garment, depending on complexity. This high cost covers the factory’s time to interpret your tech pack, create a unique pattern, source small amounts of fabric, and conduct the meticulous first assembly.
How much cheaper is it to manufacture clothing in bulk?
Significantly cheaper. Economies of scale drastically reduce the cost per unit. For example, a sample might cost $200, but producing 500 units could bring the cost per piece down to $25. Producing 5,000 units might lower it to $15. Larger quantities reduce fabric costs per yard and optimize labor efficiency.
What is the difference between cut and sew vs. print on demand (POD)?
Cut and Sew: You design and produce an original garment from scratch. This has high upfront costs (sampling, high MoQs) but results in a unique product and a lower cost per unit at scale.
Print on Demand (POD): You apply your designs to blank, pre-made garments (e.g., from Gildan or Bella+Canvas). This has $0 upfront costs and no inventory risk, but the cost per unit is high, severely limiting your profit margin. It’s ideal for testing designs.
How much should I mark up my clothing production cost for retail?
The standard industry markup is 2x to 2.5x your FOB cost to set your wholesale price. You then markup again 2x from wholesale to set your MSRP (retail price). This means if a garment costs you $10 to produce, the retail price should be around $40-$50 to account for platform fees, marketing, taxes, and profit.
Is it cheaper to manufacture domestically (USA/EU) or overseas?
Overseas (Asia, etc.): Generally offers the lowest per-unit costs, especially for large quantities, but involves higher shipping costs, import duties, and less oversight.
Domestic (USA/EU): Higher per-unit labor costs, but offers better quality control, faster turnaround, smaller MoQs, and simplifies logistics. It’s often preferred for small batches and premium brands.
Final Thoughts
Never base your retail price on what you think the market will bear or what similar brands charge. The foundation of a viable clothing business, whether on Shopify, BigCommerce, or any other platform, is a precise understanding of your Cost of Goods Sold (COGS). Start by getting detailed quotes from multiple manufacturers for your specific design.
Use this number to work backward and ensure your retail price covers all your business expenses and leaves a healthy profit margin. This disciplined financial approach is what allows brands to scale sustainably.