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INSIDE THE FASHION INDUSTRY - Budgeting



​​If you have read my previous posts you would know that budgeting out your new collection is not rocket science. Yes, there are a lot of small details to think about, but if your team is organized, then you will know what to expect. Your budget is something that you will look back and forth and it will most likely change, but at this stage of the process, after finding your inspiration, sketch design, and material sourcing, you should have a consolidated list of prices and quotes you will need to develop your collection.


Here is a list of the first things you will need to look at on your budget.


1. How many styles


Remember the post INSIDE THE FASHION INDUSTRY - Sketches where we spoke about letting your creativity run free, but then narrowing down for a certain quantity of styles? Yes, this is the moment you need to have the final number of styles you will be producing.


2. Tech sketches


Tech sketches are nothing more than a mirror of your garment. Tech sketches will be better explained in the next blog post, but for now what you need to know is, graphic designers will charge you per hour or per style. So, as long as you know how many tech sketches you will need (how many styles do you have), you should have a quote for this.


3. Patterns, prototypes, and samples for each style


Again, once you know how many styles you will be producing, you will know how many patterns, prototypes, and samples you will need. Your production management team should be able to give you quotes for each pattern, prototype, and sample. Also, please keep in mind that, depending on how hard your styles are, you might need a second round of prototypes or samples, so overestimating your budget is always a good idea when talking about pattern making.


4. Fabrics and trims


If you went step by step, followed INSIDE THE FASHION INDUSTRY - Selecting Your Materials blog post, then you should be ready to start ordering your fabrics and trims but, mainly, you should know their costs.

There is no formula to estimate fabric and trim prices. It depends on the fabric (customs or not) and it depends on vendor minimums. You will not know exactly how much fabric will be needed for your production until later on in the game, but for now, your production manager should be able to estimate how much fabric will be needed. That will be an overall estimation, but an important number for you to look at and make sure this fits your overall budget.


5. Digitizing and grading


Once your patterns are done, good to go and you have perfect samples, then it is time to digitize and grade all your patterns. This is a process that also costs money and most graders will charge you a flat fee per style, plus a certain fee to grade each size.

Again, once your patterns are perfect, you can take them to the grader and your production manager should be able to provide you with a quote.


6. Fittings


Ok, if you are going to do this right, then your goal is to hire a professional fit model. No, do not think you can try the samples on yourself just because you are the size medium. Hire a professional fit model, use the same fit model through the whole process (for consistency) and make sure that the fit model is right in your size chart.

Also, I always say that it is good to overestimate here as well. If you estimated two rounds of samples, then you already know that you will be booking models twice. And please do not forget to include size check run fitting - when you will need one model in each size to be fitted.


7. Photoshoot samples


You have to be mindful that you will need a professional photoshoot. For that, you will need samples in each style and color. You can always sell these samples in the future, but for now, you will have to include photoshoot samples in your budget.


8. Tech packs


Tech packs are crucial for production. Companies normally charge a flare fee per tech pack or an hourly rate. Depending on how many tech packs you will need (one per style to be produced) you will know an overall quote just for the tech packs.


9. Production markers


This is one of the last stages of development. Usually who did your digitizing and grading would be the same person doing the production markers and it is normally a certain fee per style, a flat fee per size to be marked, and the printing cost.

PS: markers are nothing more than the actual pattern in each size laied on the fabric width. Markers will help you avoid any fabric waste and will tell you exactly how much fabric is needed per garment - this is the moment you can recalculate the quantity of fabric needed for production and update the fabric & trim cost in your budget.


10. Production cost


You should be able to ask for production prices (cut & sew) once you have perfect samples.


11. General costs - accountant, coaching, marketing, photoshoot…


Your production manager will help you gather all information and quotes needed to develop your collection, but you are the one who knows an overall view of your company. You are the one who will deal with the accountant, legal fees, marketing companies… You need to make sure that these numbers will also be mentioned in your budget.



I know this seems a lot and when you are building your overall budget number can be scary, but something I always like to do is working with top-line costs and adding room for error to avoid any surprises. On a real budget sheet, there are more details than this, but your production manager will guide you through all of the costs in a more specific way.


Next step of developing your clothing line: technical sketches, what are them exactly, and why they are so important.



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