Maximizing Profit: The Smart Way to Price Your Fashion Products (Part 1)

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You Can Sew—But Are You Making Profit?

Let’s be real.

You know how to sew.
You’ve probably been doing it for years—customers love your clothes, and your phone is always buzzing with orders. But if we’re being honest... does your bank account reflect all that hard work?

If the answer is no or not really, then this post is for you.

You're not alone. So many talented fashion designers are putting in the hours, pouring in the creativity, yet still struggling financially. The real problem? 

Wrong pricing. And not knowing how much to actually charge.

This is the beginning of a game-changing conversation about fashion business pricing—how to calculate the right price, how to stop cheating yourself, and how to build a profitable, sustainable business from your skill.

Why Many Sewing Businesses Are Stuck

Most tailors and designers don’t realize they’re underpricing—because no one ever taught them how to calculate the cost of their work the right way.

Here’s the thing:
Charging “small money” doesn’t mean more customers.
It usually means you’re:

  • Burning out without reward

  • Can’t afford to reinvest in your business

  • Always working but never growing

  • Giving A+ work at D– prices

Sound familiar?

It’s time to shift that mindset.

Let’s Talk Money: What Goes Into the Right Price?

You probably already ask yourself:

“How much will the fabric cost?”
“How long will this take me?”

          "How much are my competitors charging?"

But that’s just scratching the surface.

To run a real fashion business, you need to include:

  • Material Cost (fabrics, zippers, thread, lining)

  • Labour/Time Cost (your hours, your assistant’s hours)

  • Overhead Cost (rent, electricity, machine maintenance)

  • Profit Margin (what your business earns to grow)

  • Salary (yes, you! Pay yourself as CEO)

  • Savings + Reinvestment (for the future and scaling)

Once you understand these, your pricing becomes more than guesswork—it becomes a powerful tool.

And when you know your numbers, you gain control.
You can confidently say: “This is my price,” without fear or apology.

Manual Calculations Are a Great Start

If you don’t know how to manually calculate your price, you don’t know your business.

So yes, it’s great to sit down with pen and paper and break things down. This is how you truly see where your money goes and how your profit is made (or lost).

So now calculate:

charge confidently for your sewing
How to calculate profit in fashion business


How much do you spend on the items you use in making an Ankara dress?

How about a lace dress?

How many hours do you spend in making it?

How much on the average do you spend monthly on fuel, gas, water, repairs and maintenance of your sewing machine, or other things around your space?

Yes! you need to know these and some more to get your price right.


Let's dive in!

Absolutely! Let’s break this down step by step—how to calculate your price as a fashion entrepreneur, using the following components:

Pricing Formula 

To get your final price, you’ll calculate this:

Selling Price = Material Cost + Labour Cost + Overhead Allocation + CEO Salary Allocation + Profit + Savings & Reinvestment

Let’s explain each one like we’re working through an actual order. You can use your calculator.

1. Material Cost

This includes everything used for the specific garment:

  • Fabric (yardage × cost per yard)

  • Zipper

  • Buttons

  • Lining

  • Threads

  • Hairstay, etc

Example:

  • 2 yards of fabric at ₦2,000 = ₦4,000

  • Zipper = ₦300

  • Lining = ₦800

  • Thread, etc. = ₦400
    Total Material Cost = ₦5,500

2. Labour Cost (Labour Time)

This is what you pay yourself (or staff) for the time and effort to sew.

You can calculate based on hourly rate × hours needed. You may be paying your tailor per outfit, and so would not need to use an hourly rate

Example:

  • You set your rate at ₦1,000/hour

  • It takes 4 hours to sew
    Labour = ₦4,000

(If you would like to track hours, start observing how long each type of garment takes. You can use a time tracking app or even your phone timer.)

3. Overhead Allocation

Overhead are your monthly fixed costs, like:

  • Rent

  • Electricity & fuel

  • Internet & data

  • Admin staff

  • Logistics / deliveries

  • Water

  • Maintenance

  • Packaging, etc

To calculate per garment:

  • Total overhead for the month: ₦200,000

  • Estimated garments per month: 40

  • Overhead per garment = ₦200,000 ÷ 40 = ₦5,000

If you make 20 garments, the cost per garment would be ₦200,000 ÷ 20 = ₦10,000.
This is why tracking how many jobs you take monthly is important!

4. CEO Salary Allocation

Your business must pay you—even if small at first.

Say you want to earn ₦150,000/month, and you sew 30 garments/month:

  • ₦150,000 ÷ 30 = ₦5,000 per garment

CEO Salary Allocation = ₦5,000

5. Profit Margin

Profit is not your salary. It’s what’s left to grow the business.

You can choose your margin (10%, 20%, 30%...)

Let’s say we want 20% profit margin

First, add:

  • Material + Labour + Overhead + CEO =
    ₦5,500 + ₦4,000 + ₦5,000 + ₦5,000 = ₦19,500

Then:

  • Profit = 20% of ₦19,500 = ₦3,900

6. Savings & Reinvestment

You can also plan for this separately.
Say you want to save 10% of the total base cost (before profit).

  • 10% of ₦19,500 = ₦1,950

Final Price Calculation

Component Amount (₦)
Material 5,500
Labour 4,000
Overhead 5,000
CEO Salary 5,000
Profit (20%) 3,900
Savings & Reinvestment (10%) 1,950
Total Selling Price ₦25,350

Summary Formula

Selling Price = (Material + Labour + Overhead + CEO Salary) + Profit + Savings


Why This Matters

This method:

  • Makes sure you’re not running at a loss

  • Pays you like a professional

  • Keeps your business healthy

  • Helps you build long-term savings

  • Protects your peace

Woah! 

This is a lot.

Doing this manually can be time consuming. 

BUT…

Imagine being able to automate your pricing with a tool that analyze your entries and calculates profit, savings, CEO salary, material costs, and even warns you if a discount dips into your profit, not forgetting that it can even tell you what to allocate for different expenses.

Exciting right?
That’s what we’ll talk about in Part 2 of this series—how to go from manual to automated pricing and build a business system that works, even when you’re not holding the calculator.

About Osas Olumese Training Institute (OOTI)

We’re more than just a fashion school in Kano State.

At OOTI, we equip aspiring and experienced fashion designers with practical skills for sewing and business growth. 

Let’s talk.
Find out more about our training options, or simply share this post with someone in your network who needs it.

Because sewing is a skill.
But pricing well?
That’s a superpower.

Watch out for Part 2: “From Manual to Magic – How to Automate Your Fashion Pricing & Save Time!”


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