Find out what your product really costs, then price it so the business survives.
Most brands calculate cost price and forget freight, duty, sampling, returns and the discount they always end up giving. Prox rebuilds the number properly, sets the retail price against it, and tells you what has to change.
- Your revenue is growing and your gross margin is not.
- You have never separated cost price from landed cost.
- You discount to clear stock more often than you planned to.
- You are about to set prices for a new range.
- You want a bookkeeper or an accountant. Prox works on product economics, not statutory accounts.
- Your issue is marketing spend rather than product cost.
Where the money leaks.
Cost price is the number on the factory quote. Landed cost is what the unit actually costs once freight, duty, insurance, sampling, inspection, bank fees and forwarder charges are apportioned. Intake margin is what is left when you sell it at full price. Achieved margin is what is left after markdown. Most brands know the first number, estimate the second, never calculate the third and only find out the fourth at the end of the financial year.
The steps, in order.
Pull the real numbers. Factory quotes, freight invoices, duty rates, sampling costs, sales data by style.
Rebuild the costing model. One sheet per style, landed to your warehouse door, in AUD.
Set the price architecture. Entry, core and top price points, with the intake margin each must hold.
Test it against reality. Model the range at full price, at your actual discount rate, and at a worst case.
Name the changes. Which styles need a cost reduction, which need a price increase, which should not be made again.
Hand over the model. Yours, editable, with the formulas visible and explained.
- A landed cost model for your range, in AUD
- A price architecture with target intake margin by tier
- A style-by-style margin ranking
- A written list of the specific cost reductions worth chasing
- A one-page summary you can take to your factory
- Recording, notes and a 30-day question window
Product cost reduction at Apparel Group by sourcing direct
The Margin Check, AUD $690 inc GST. 90 minutes, plus a review of your costings beforehand and a written action plan afterwards. Deeper work is quoted as the Category Rebuild at AUD $9,800 inc GST.
Answered plainly.
Your current costing sheet or factory quotes, a recent freight invoice, and your last twelve months of sales by style if you have it. If you have none of these, bring what you have; the first job is often building the sheet.
Sometimes. More often the answer is a smaller range at better cost, because raising price on a product the market has already priced is the slower fix.
Both. The model holds FOB in the supplier's currency and converts at a rate you set, so you can see exposure when the dollar moves.
Yes, in the Supplier Search and Category Rebuild engagements. Prox negotiates on your behalf and never takes a share of what is saved.