The cost of manufacturing a men's shirt dances wildly between the UK, Portugal, and Turkey, thanks to differences in labor costs, production efficiency, material sourcing, and just how many shirts you’re cranking out.
I often get the fun job of comparing costs for a client's collection across various locales so they can choose the best route to meet their price dreams.
For those of you new to this party and curious about the price differences, let's break it down with a 100% linen shirt we made a couple of years ago for a menswear brand, re-costed with the latest prices, assuming you want to sell it for a cool £100.
While the UK lets us churn out smaller quantities, this does make the cost price skyrocket. If your RRP is £100 per piece, you’d only manage an 82% mark-up with a gross profit of £44.94 per shirt. That said, we do recommend small start-ups kick things off in the UK to test the waters before diving into larger runs either here or abroad, should you wish to give your GP a boost.
Portugal sits comfortably in the mid-price range, letting you mark up to 200% with a £100 retail price and a gross profit of £66.70 per shirt. The initial outlay isn't much higher than in the UK, at £9990.00 + VAT for 300 pieces. Personally, I think Portugal hits the sweet spot for the best combination of craftsmanship, fabric quality, minimum order quantities, and price.
Turkey offers the lowest cost price, letting you mark up a whopping 260% to a £100 retail price, with a gross profit of £75.65 per shirt. However, the initial outlay is the highest, at £12,175.00 + VAT.
So, here's the scoop: The UK is great for small runs but will have your wallet crying, with just a modest profit to show for it. Portugal is like the Goldilocks of shirt production—just right with good quality, decent costs, and a nice profit margin. And then there's Turkey, the budget-friendly option that lets you rake in the profits, though you'll need a hefty upfront investment. In short, whether you're playing it safe, looking for the sweet spot, or going all-in, there's a country out there for every budget and ambition!
Thankyou for coming to my Ted Talk....much love. FF xx
Shelley / Childrenswear Brand
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