How do I calculate my true cost per piece for boutique inventory?
Add your invoice cost, inbound shipping, duties, tariffs, packaging, and platform fees together for each style. This fully loaded cost is often 15–30% higher than the invoice price alone.
“The price on your supplier invoice is almost never your true cost — once you add shipping, tariffs, and fees, your actual cost per piece is often 15–30% higher.”
Your supplier invoice price is almost never your actual cost. To find your true landed cost per piece, sum every expense that went into getting that item onto your shelf: the wholesale price, inbound shipping, customs duties, tariffs, packaging materials, and any platform or transaction fees.
This matters enormously when you start planning markdowns. If you base discounts on the invoice price alone, you may accidentally sell pieces at a loss without realizing it. A quick gut check from multiple retail sources: multiply your fully loaded cost by three. If your retail price is below that number, you were under-margined before the sale even started.
Add a 'fully loaded cost' column to your inventory spreadsheet so this number is visible every time you make a pricing decision. It takes time upfront but prevents costly mistakes all season long.
Listen to the full episode: Episode 25: How to Price Your Summer Sale to Protect Margins While Clearing Inventory (The Math Every Boutique Needs)
More answers from this episode
- How do I build a tiered markdown ladder for my boutique's summer sale?
- How do I create a weekly markdown dashboard for my boutique?
- How do I set up Shopify compare-at price for a sale correctly?
- Should I discount basics and trendy pieces the same way during a summer sale?
- Should I put my best-selling styles on sale during a summer clearance?
- Should I try anything before putting summer inventory on sale?
Source: BoutiquePulse podcast. Last updated: 2026-06-03 · Sourcing & methodology · Corrections log