The process of creating a garment is complex. And one of the biggest challenges for aspiring fashion designers and entrepreneurs is understanding how much capital is needed to develop and produce a garment with a manufacturer. In this blog post, we explore the various costs involved in the garment production process and provide some insights into how much capital is required to get started.
Development
The development process is expensive - plain and simple. You’ll need to pay for a pattern, samples, fabric, grading, and in some cases you’ll need to pay just to meet with a manufacturer. These development fees are typically paid upfront and are non-refundable. Shop around for rates and see what each manufacturer offers in their development package. You'll want to choose a manufacturer that not only fits your budget but also makes sense for the type of garment you are developing. If you're developing a high-end garment with a complex design you should expect to pay a premium for the develop of your garment vs. developing a basic garment like a T-Shirt or Hoodie.
Production
You’ll also need enough capital for your production order. Cut and sew always comes with MOQs (Minimum Order Quantity). So whether the MOQ is 500 units or 5,000 units, you’ll need enough capital remaining to cover production. There are several factors that will determine the price of your garment. The price per garment will vary on your order qty, garment style, finishing, and manufacturer - Make sure to meet with the manufacturer to go over your project to receive a quote on your garment so everyone is on the same page. Often times, a manufacturer will ask for a 50% deposit and 50% when completed. Additional costs to consider are shipping, taxes/duties, and handling fees.
Time
A cost that often goes overlooked is time. Development can take months before you are ready to go into production. And in most cases, you’ll need to be present in some shape or form during each step of the development process. Make sure to plan accordingly and set enough time so you don’t miss your season.
How much capital do I need for production?
The cost of developing and producing a garment with a manufacturer can vary widely depending on several factors, including the complexity of the design, the quantity of garments being produced, and the materials used. It is important to carefully consider all of the costs involved and to budget accordingly to avoid running out of capital. Be prepared to spend anywhere between $500-$2,000 to design and develop your product to get ready for production and meet with your manufacturer to receive a quote for your garment. You'll also want to consider the deposit that is required before going into production. Developing your own garments can be a tough and frustrating experience but with careful planning and budgeting, you’ll be able to create a successful brand and bring quality products to your customers.
-PL