PRICING & BUDGETING 

DESIGNING TO A BUDGET

 

FEELING STRESSED ABOUT THE UNKNOWN COST AND RISK OF STARTING A FASHION LABEL?

Financial uncertainty and stress is a killer! We don't want anyone falling into the trap of taking un-calculated risks when moving forward with a large project and being left with an empty bank account!

 

We are here to help ensure any project does not go ahead until we have thoroughly calculated our client’s estimated cost, profit margins and net profits. We make it our business to ensure each collation will be profitable enough to organically grow without refinancing for next collection.

 

We have the industry knowledge to create realistic pricing structures, margins, cashflow forecast, individual collection budgets as well as overall business budgets. We know what a realistic sell-through is and when money’s in and out will be due according to the seasons.

As we also offer shipping and logistics services so that you have everything covered a the budgeting stage.

We will help you strategically plan the number of collection drops (deliveries) required for a steady cash flow and the timelines for distribution of new product to the market to keep customers interested. Allocating realistic timelines to ensure drops of products are ready for peak seasons of main market / country where the sales will be aimed for, is crucial for the sell through success.

STEP 1

 

TARGET BUDGET

If you don't have have tech packs that is ok, we can still help give you an idea on how to design to your budget. We do this by giving you an idea of style numbers, fabrications, and general complexity of the designs. This stage is more of a a guidance stage because we don't have any exact numbers yet!

STEP 2

QUOTING

So you have completed your tech packs and are ready to get a better idea of costings..?

 

At this stage we can give you very accurate production costs.

We will at this stage calculate 'landed' cost, margins, selling prices and net profits. You can now see a very realistic overview of how much the whole collection will cost including sample and import cost, and also how much you will earn.

 

This is important because vital decisions will be made on how to move forward with design decisions as well as quantities that make your budget work. 

STEP 3

FINAL BUDGET

Almost at the finish line..

 

Sometimes there are further costing updates during the sample stage, so final prices will be calculated upon confirmed samples. Upon confirmed samples and prices, we can update the budget with final cost and sales prices to publish to the market.

STEP 4

OVERALL  BUSINESS BUDGET

The big picture!

 

Once we have calculated the individual collection budget and determined how many collection drops per year you are going to have, we can then calculate an overall annual and 2 year forecast business budget. This can include the overlap of collection cost and income as well as all other business expenses. 

 

To unlock the financial unknown, book a budget appoitment which can be made in our Newcastle office or via Google Hang video conference.


 

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