The real reason your fashion business isn’t growing isn't about your price point. It’s not about your products. It’s not about ‘the economy’.
It’s your pricing model.
The pricing model I recommend following when you're growing your ethical, sustainable, circle or slow fashion brand, is called the 2.2 rule and it’s a pricing model that allows growth.
You take your cost price, multiply it by 2.2 to get your wholesale price, then multiply that by 2.2 to get your retail (RRP) price.
As an example, if your cost price is $100, you multiply $100 by 2.2 to get a wholesale price of $220, then you multiply that by 2.2 to get a retail price of $484.
From there, you can round up to $489 because it sounds a little prettier on a price tag, but using this model gives you a buffer and a safety net for growth.
More importantly, it gives you room to pay yourself wage, it gives you room to create a marketing budget, and it gives you room to cover your business expenses.
If you want to scale, you have to have a pricing model that allows for scalability, and this is a model that does that.
Need more pricing help? Contact me for a pricing chat here.
Claire x
