Comments on the Article blog are now OFF! If you wish to leave feedback or your opinion of an article individual threads will be created in the Dobizo Community for further discussion. Go to discussion by Clicking Here Now

The break even point is when in our case a clothing garments total cost of production is equal to total revenue for the product. In other words in order to break even on a product that cost you $400 (Not an actual figure) that’s printing, tags, production run and equipment (The total cost of production). Let’s say the product is sold wholesale for $8 than that means in order to break even you would need to sell 50 pieces of that clothing product. Using the break even analysis is a great way to decide if a certain clothing garment is worth the hassle of designing, manufacturing and selling, because you will be able to determine if it will be slightly profitable, very profitable or will you just lose money. Ask yourself do you want to lose money? Of course you will at first when your production is just dispersed amongst a few stores, but the break even analysis will help you determine if they will become profitable after you increase your productivity and a certain amount is sold.

Do any of you guys use the break even analysis in your clothing line business model? How has it worked out for you so far?

Serious about starting a clothing line? If so subscribe to our free newsletter for exclusive articles/updates that you don't want to miss! or Our RSS Feed

Continue This Discussion In Dobizo Forum

Fred

Popularity: 1% [?]

Want To Learn How To Start A Clothing Line From a proven fashion industry professional? If so Click Here to take a listen 100% Free to how you can succeed in the fashion industry from Ceo's of million dollar apparel industry businesses.