Quick answer: 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.
The pricing stack: from factory cost to retail tag
Retail price is built in layers, and each layer exists whether you plan for it or not. Start with FOB (the garment leaving the factory). Add freight and duty — typically $1–$3 per piece to the US or EU depending on mode and category — to get landed cost. Add your domestic costs: 3PL storage and pick-pack, payment processing (~3%), returns (activewear runs 15–25% online), and marketing, which for young DTC brands often exceeds the garment cost itself. Only what is left after all of that is margin.
Worked example with round numbers: a legging landed at $10 total, sold at $59, looks like an 83% gross margin — but after 20% returns, $12 average acquisition cost and $4 fulfilment, the contribution margin is closer to $28. That is a healthy business. The same math at a $39 price point is a hobby.
Choosing your multiple: 3×, 4× or 5×
The old wholesale rule of thumb — retail at 4–5× landed cost — still holds surprisingly well for DTC activewear. Price below 3× and you have no room for returns, sales events or paid acquisition; the brands that die fastest are the ones that priced for a spreadsheet without marketing costs. Price above 5–6× and you are competing on brand alone, which requires content and community spend that itself must come from margin. Most successful mid-market activewear brands land at 4–4.5× landed cost, then protect the number by limiting discounts to two windows a year.
Price points that actually convert
Activewear customers anchor hard on familiar thresholds: $49 reads as accessible, $68–$78 as premium DTC, $88–$98 as aspirational. The dead zone is $55–$62 — too expensive to be a bargain, too cheap to signal premium. If your math lands there, either engineer cost down to hit $49–$52 or add perceived value (fabric story, pocket construction, extended sizes) and price at $68. Sets deserve their own line: bundling bra + legging at 15% under the separate total lifts average order value more reliably than any discount code.
When and how to raise prices
Raise prices when your sell-through says so, not when costs drift: if a colorway sells 60%+ in the first four weeks at full price, the next drop can carry a higher tag. Grandfather nothing — new price applies to new stock, quietly. And never apologise in the product copy; premium pricing defended with specifics (fabric weight, certified mills, QC process) converts better than discounts. For the factory-side numbers to build on, see our 2026 wholesale price benchmark computed from 2,935 styles.
Wholesale and marketplace math
The moment a boutique, gym or marketplace asks for your line sheet, a second pricing stack appears. Standard keystone wholesale is 50% off retail; for that to work, your landed cost must sit at or below 25% of retail — which is why brands priced at 3× landed can never wholesale profitably. Marketplaces sit in between: 15–35% commission plus fulfilment expectations. Decide early whether wholesale is in your future and price your retail with the 4× discipline that leaves room; retrofitting higher prices onto an existing audience is far harder than launching with them.
Discounting without eroding the brand
Activewear customers are trained to wait for sales — don't feed the habit. Safer levers, in order: bundles (set pricing at 12–15% under separates lifts AOV without marking anything "down"), colorway clearance (end-of-life shades only, quietly, off the main collection page), loyalty early-access (feels like privilege, not desperation), and two anchored sale windows a year maximum. What kills margin fastest is the always-on 10% welcome code stacked with paid traffic — if you must run one, price it into the 4× multiple from day one.
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.