Short version: Most DTC activewear sells at a 4–6x markup on landed cost, targeting a 65–75%+ gross margin. A legging that costs you ~US$9 landed typically retails around US$45–65.
Start with your landed cost
Landed cost = factory price + branding + freight + duties, divided by units. Not just the garment price. See what it really costs and DDP shipping.
The pricing formula
A workable starting point: RRP = landed cost × 4 to 6. The multiple covers returns, marketing (often your biggest cost), discounts, platform fees and profit. DTC brands lean to the higher end because ads are expensive.
Worked example
- Legging landed cost: US$9
- ×5 markup → RRP US$45
- Gross margin: ~80% before marketing; ~30–45% after ad spend & returns.
What margin do you actually need?
Aim for 65–75%+ gross margin so there's room for ~20–35% marketing, discounts, returns and still profit. If a price can't clear that, rethink the cost (order size, fewer SKUs) or the positioning (premium story).
Pricing levers
- Sets & bundles raise average order value and margin.
- Premium fabric/story (seamless, recycled) supports a higher RRP.
- Order size lowers per-unit cost — margin improves as you scale.
FAQ
What markup should I use for activewear?
4–6x landed cost is typical for DTC, targeting 65–75%+ gross margin to cover marketing, returns and profit.
How much should leggings retail for?
If your landed cost is around US$9, a 4–6x markup gives roughly US$45–65 RRP, in line with most premium DTC leggings.