A very mathematical approach to breaking down the price of a clothing article

Recently a friend posed a very interesting question to me, what really decides the price of a clothing article? I had a clever answer waiting for him, “it’s obviously the market.” Needless to say, he wasn’t going to let me off the hook so easily. Though my answer was correct, in a fair and open market the price for any goods or service is what the people are willing to pay for it, my friend wanted a better explanation. This article is a response to that very question along with our two cents (full disclaimer, it’s just our opinion) on how you can use this information to make better buying choices.

Now, before all you fashion gurus come all guns blazing at me, of course, I will take some liberties. This is to aid people not from a fashion background.

Every article that you buy or would have bought has an interplay of these components that would have decided their price.

1. Material Costs: The Foundation of the Price
   The fabric used to make a garment is one of the most significant factors that influence its price. Different types of fabrics have vastly different costs, and the choice of material directly impacts both the production cost and the quality of the final product.
   
   
2. Labor Costs: The Human Element
   Labor costs would vary widely for the kind of apparel you have, is it manufactured using a machine or is it tailored? For a machine-manufactured article, labor cost is a very tiny fraction of its overall final price whereas the tailored piece will have a majority of its cost attributed to skilled labor. Labor costs would also vary widely for developing and developed countries.
   
   
3. Design and Development: Creativity Comes at a Cost
   Designing clothing isn’t just about sketching a few lines on paper—it’s a detailed, often lengthy process that requires research, creativity, and technical expertise. Designing and development is sort of the experimental R&D part of clothing and R&D anywhere is going to cost money.
   
   
4. Distribution and business expense: Getting the product to you after you buy it
   Once a clothing item is produced, it has to be distributed to retail stores or made available for direct-to-consumer sales. Distribution costs include shipping, handling, and warehousing. Multiple costs are associated with running a business, including rent for the office or factory, utilities, and salaries of non-production staff.
   
   
5. Marketing: Getting the product to you before you buy it
   Marketing is an essential part of any business, especially e-commerce. It is the way the product gets to you before you buy it so that you can buy it. Digital marketing (along with its newer cousin, performance marketing) has changed the rules of the game completely, with bands relying heavily on it. It has replaced the clunky and traditional ways of marketing using billboards, and print media. Now, brands can specifically target a desired target audience.
   
   
6. Brand Premium: The Influence of Branding
   A significant portion of the price of many clothing items can be tied to the brand’s name and its perceived value. This “brand premium” is not based on the intrinsic value of the clothing itself but on the status and prestige that comes with wearing a brand.

Our two cents: Advice on how to make a better buying choice

When purchasing ready-made clothing such as hoodies, sweaters, t-shirts, or trousers, labor costs are typically negligible, as they make up a small fraction of the overall price. Unless the garment features a unique, intricate, or newly introduced design, design costs are likely minimal as well. Business and distribution expenses are unavoidable, but they usually don’t contribute significantly to the final price, so there’s no need to worry about those either.

When considering marketing, remember a simple rule: "Marketing can make a good product great, but it will never make a bad product good." You should always verify a marketed product for its quality. A brand is a seal of trust and a personal choice. If you like the tag of a brand, go for it by all means. Material (and stitching) is something you should be careful about the most. This will define your relationship with the article after you have bought it.

For tailored clothing, you're not just paying for the material; you're also compensating for the skill and craftsmanship involved in creating the piece. While the material will still make up a significant portion of the cost, the quality of the design and stitching is equally—if not more—important. So, when buying tailored garments, invest wisely in the artisan's expertise to ensure you get the best value for your money.

The TwinDolph experiment

TwinDolph is an experiment to create a brand that tells everything to its buyers as it is. We are inspired by the brand stories of “The Ordinary” and “The Whole Truth”. We set out looking for a similar brand in the fashion space, we weren’t satisfied so we created “TwinDolph”. We want to offer you the best quality products at unbeatable prices and inform you exactly what you are buying. We have two working principles, no brand surcharge (thank god we are not a big brand :) ). and a very moderated marketing spend. You are welcome to explore our range and we would love to hear your thoughts and feedback.