Tips on how to set pricing as a fashion business owner

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In this article, fashion business owner, Hamilton Awah, CEO of Miltonsbespoke shares his experience in setting the right price for his fashion items and wears business. We asked him a few questions and he responded while sharing a few tips on how to set pricing as a fashion business owner.

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‍Tell us a little about your business. What do you do and how did you start your business?

I have 2 fashion brands, Miltonsbespoke which is my main specialty where I create only native/kaftans and suits, while the second is the Shift_n_Silk which is majorly for shirts and urban outfits.

I started way back in 2016 after I graduated from the University. The idea to venture into this came from a friend who noticed I love wearing clothes and not just clothes, but clothes that are different from what you see around. So I just thought it was something I should do and also because I didn’t like the other option my dad gave me which was to teach in a school while I wait for my NYSC posting.

My start-up capital (N50,000) was given to me by my Dad and in as much as it's been a hurdle ever since I have never looked back.

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What was the first selling price you put on your first piece/item?
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When I started I was selling just shirts and my first selling price was N3,000 per shirt.

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Did Market research influence your prices at the time?

To be honest, I didn’t do any market research and that affected me badly because I was making more losses than profits. I only had it in mind to sell at an affordable rate, gain a solid clientele base and increase my prices over time and it was successful because right now I have a solid clientele base from 2016 till now. These are people who can confidently vouch for my brand, people who think of my brand based on trust, quality, and keeping to delivery time.

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When did your prices improve and what factors affected that outcome?

My prices improved when I was satisfied and confident with the services I rendered. I wanted to get to a point where a client pays for an outfit and is left speechless when he receives it. I also increase my prices by instinct, when I feel like this outfit is too good for the price I’m selling it for then that's a sign to increase the price, packaging, and cost of materials also play a role too.

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As a fashion business owner, did other sellers in your industry serve as a benchmark for prices, or was it based on cost prices?

Other sellers were never a benchmark for my prices. I look at cost of materials and cost of production, then input my profit and whatever comes up is my selling price.

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Would you say the inflation/economic status of the country affects the profit margin?

The inflation hugely affects profit margin because now you’re spending more on materials and that eats into your profit.

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Advice and tips to those just starting in the fashion industry on setting the right prices

My advice for those starting is to have your market survey. This is not by looking at other sellers' prices but by going to the market to check the cost of working materials, cost of production, and how much profit you feel is enough for you then with that you can set your selling price.

As a fashion business owner, market surveys and setting the right prices are very important. Once you get that right, managing your cash flow comes next. With Dillali, you can keep track of your income and expenses, record your sales and track your customers, all in one place.

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