Private label profit margins in fashion accessories

Private label profit margins in fashion accessories

Accessories are a margin-friendly category, which is a big part of why they make such a good business. But the margin only works if you price properly from the start. Here is how margins work on private label accessories and how to protect yours.

Cost price, wholesale and retail

Three numbers matter. Your cost price, or landed cost, is what the product costs to get into your warehouse. Your wholesale price is what you charge stockists. Your retail price is what the end customer pays. The gaps between them are your margins, and you need both to work if you sell through multiple channels.

Typical markups on accessories

Accessories often support healthy markups because they are small, brandable and have strong perceived value. A common approach is to set retail at a multiple of landed cost that leaves room for both your wholesale margin and your stockist's. The exact multiple varies by category and positioning, but accessories generally give you more room than apparel.

How volume and minimums change the maths

Your landed cost falls as volume rises, which improves your margin. This is why minimums matter to your economics, not just your cash flow. A slightly larger run at a lower unit cost can transform a marginal product into a profitable one, so model the maths at a few volumes before you commit.

Pricing for wholesale and direct

If you sell both wholesale and direct, set your retail price so it works for stockists and protects your direct margin without undercutting them. Get this structure right early. Engelite helps brands cost ranges that work across channels. Tell us your product and we will help you build the numbers.

 

Want help costing your range? Talk to Engelite.

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