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I'm looking to start an apparel company and I needed a little advice about how much to sell my products to distributors and retail. Is there a formula or percentage that I should charge based upon the cost to produce and suggested retail price? For example, how much should I charge to my distributors and to sell at my retail for the numbers below?

Cost to produce:

$5

$10

$15

$10

(What is a fair price to sell these retail... and to sell wholesale to distrubutors?)

What kind of Profit margin is good for my distributors? Based on the cost to produce and suggested selling price? I'd like to be competitive but not underpriced. I'll be selling basic T-shirts similar to the brand Tap-out or Throwdown and high quality T-shirts that are similar to Affliction Clothing. Thanks!!!!!!!!!
 

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Generally you would double at each level. So if your cost is $5, your wholesale price would be $10 and the retail price would be $20. Of course, different retailers in different markets can command different prices. So the retailer can mark it up even more if they can.

Selling to distributors can be tricky. Because it's an additional middle man, you need to find a price between your cost and wholesale price. My experience with distributors is to sell closeouts, where you're willing to take minimal margins just to move leftover merchandise. If you can find a distributor that does excellent volume, that could be valuable. You would still need to take low margins though, but the volume makes up for it.
 
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