The Cost Breakdown of Pricing a Shirt

Have you ever wondered, when you picked up a shirt at the mall and look at the price tag, where exactly that money is going? The following infographic provides an estimated breakdown of where your money goes and how that shirt was priced.

The Cost Breakdown of Pricing a Shirt

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<p><a href='http://www.investmentzen.com/data-visualization/the-cost-breakdown-of-pricing-a-shirt/'><img src='https://investmentzen-569f.kxcdn.com/blog/wp-content/uploads/2017/05/The-Cost-Breakdown-of-Pricing-a-Shirt.jpg' alt='The Cost Breakdown of Pricing a Shirt' width='800px' border='0' /></a></p>
<p>Via: <a href="http://www.investmentzen.com/data-visualization/the-cost-breakdown-of-pricing-a-shirt/">InvestmentZen.com</a></p>

 

Estimated Costs of Producing a Shirt

  • Raw Materials (ie: Cotton) – $0.60
  • Spinning the yarn (from the cotton) – $0.40
  • Shirt labor (dyeing, fabric-making, cutting, sewing): $1.00
  • Shirt design: $0.25
  • Design printing: $0.90

Total Cost of Producing the Shirt: $3.15

Estimated Costs Added by the Wholesaler

  • Mark-up (usually this is around 75% of the cost of production): $2.36
  • Tax & Duty: $0.27
  • Warehouse & Storage: $0.27
  • Shipping & Freight: $0.25

Wholesale Price: $6.30

Estimated Costs Added by the Wholesaler

  • Mark-up (usually this is around the wholesale price of the shirt): $6.30
  • Warehouse & Storage: $1.45
  • Shipping & Freight: $0.95

Retail Price: $15.00

$15 Shirt Cost Breakdown by percentage:

  • Materials (cotton and yarn): 6.7% ($1.00)
  • Labor/Design: 14.3% ($2.15)
  • Tax & Duty: 1.8% ($0.27)
  • Warehouse & Storage: 11.5% ($1.72)
  • Shipping & Freight: 8% ($1.20)
  • Mark-Up: 57.7% ($8.66)

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