How To Price Wholesale Clothing For Retail?

Setting prices for your wholesale boutique clothing comes with some challenges. You need to consider so many factors while coming up with the wholesale women's clothing price, such as cost, target profit, after-sale services, etc. In this article, we take you through the four best pricing strategies that you can employ to keep your clients coming back.

What Are the 4 Best Strategies to Price Wholesale Clothing For Retail?

How To Price Wholesale Clothing For Retail?

  • Keystone Pricing Method

The keystone pricing method is one of the popular and easiest ways to price your wholesale boutique clothing for retail.

This strategy involves doubling the cost of an item to sell to retail, commonly known as the wholesale price. While setting his/her consumer price, the retailer will double the cost of buying the item to obtain the retail price.
For instance, if the cost of production of a top is $20, then the price of selling that top for retail will be set at $40.
This pricing method ensures that all vendors in the supply chain (retailer, wholesaler, producer) make a profit and remain in business.

The suggested retail price provides a decent number for calculating your profit margin, an advantage of the keystone pricing strategy. However, this pricing is not always reasonable because it does not account for various circumstances, such as the cost of operating wholesale women's clothing in various regions.

  • Absorption Pricing method

The absorption pricing approach requires more arithmetic to calculate the wholesale women's clothing price for retail. It may be a more accurate way to determine the price of garments than just doubling or tripling the price every time. It "absorbs" all of your expenses into the pricing scheme for your wholesale boutique clothing.

You will begin with the unit cost. When calculating cost per unit, you will start with a formula that combines your production, overhead, and administrative expenses (rent, utilities, employee pay, etc.). The overhead and administrative costs should be divided by the number of units produced before adding them to the production cost.

To come up with a wholesale price, you add your profit margin to the total unit cost obtained above. To obtain the retail price, you can multiply the wholesale price by either 2 or 2.5.

How To Price Wholesale Clothing For Retail?

  • Differentiated pricing

The wholesale boutique clothing prices will depend on the law of demand. That means that every customer can pay a different price depending on the demand and supply. You will charge more for your wholesale women's clothing in the competitive area.

The clients who are buying in large quantities will be offered discounts and incentives to buy again, while those buying in small quantities will pay more to maintain the profit margins.

  • Market-based pricing

If you are setting wholesale boutique clothing prices based on market-based pricing techniques, your prices will be influenced by your competitors. You can choose to have wholesale women's clothing prices similar to that of your competitors or have them a little bit lower to attract more customers.


Coming up with the wholesale boutique clothing prices for retail can be challenging. However, if you factor the necessary pricing factors in place, you will develop the best pricing technique for your business.