How should boutique owners price garments to ensure profitable retail margins?

Pricing strategy is one of the most critical skills for boutique profitability. Here is a step-by-step framework:

Step 1 — Calculate your true landed cost:

Landed cost = Wholesale price + Shipping/freight + Packaging materials + Any alteration or finishing cost

Step 2 — Decide your minimum margin:

• Physical shop: minimum 60% margin to cover rent, staff, and overheads
• Online/Instagram boutique: minimum 40–50% margin (lower overheads)

Step 3 — Apply markup formula:

Selling price = Landed cost ÷ (1 − desired margin %)

Example: ₹400 landed cost at 60% margin = ₹400 ÷ 0.40 = ₹1,000 retail price

Step 4 — Benchmark against market: Check what similar products sell for in your market. If your price is more than 20% above the benchmark, revisit either your cost or your margin expectation.