How Much Does Clothing Cost to Make?
Good question and one that will shock you. You will look at the price tag very differently, yet, there is nothing you can do about it.
For instance, the cost of a single shirt can vary because of the material it is made from. Still, the markups are simply incredible. If you buy a polo shirt from Aeropostle for $12, which is common, you will see it is made in India\Pakistan\Indonesia. The material for the shirt is not more than $1 dollar, labor maybe another $1-2. So, the cost to make the one shirt is around $3. The merchant will buy it for $6. Retail to the buyer for $12 or more. Some retailers really, usually the trendy chic fashions, mark up the products insanely.
For instance, the KP Maclane Polo shirt for women retails for $155!!! The cost to make the shirt is $29. Stores buy it from the manufacturer for $65 and then sell to idiot consumers who would buy a $155 polo shirt. Designer jeans are identical in mark ups, event the ones that are ripped up and look like they are ready to be thrown away. Now this same shirt (the same one that sells for $155) or near copy of it from China sells for $10 because the shirt uses a cheaper type of cotton.
Retailers in the USA always mark up their merchandise on the racks by 2 to 2.5 times of the wholesale price. This pays for salaries, ads, benefits, profits.
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