Build a Bra Assortment Around Contribution Margin and Reorders
By LXSC · Sourcing and product-development guides
A higher selling price does not guarantee a more profitable bra assortment. Compare what remains after variable selling costs, how much inventory cash is committed and how reliably each model sells. Use your own quotations and channel charges; the example below explains arithmetic, not expected LXSC customer earnings.
Give each candidate a commercial role
A basic style, occasion style and matching offer may serve different customer needs. Record the reason for stocking each and the evidence that supports it. Do not assume that a decorative product deserves a higher margin or that a basic will automatically turn faster. Keep opening quantities, discounts and unavailable variants visible when reviewing results.
Separate gross margin, markup and contribution
For this planning worksheet, gross profit is net sales revenue minus landed product cost. Gross margin divides that amount by net sales revenue; markup divides it by landed cost. Contribution then subtracts other variable selling costs. Keep fixed overhead separate so contribution is not described as net business profit.
| Illustrative item | USD per unit or calculation |
|---|---|
| Net sales revenue | 20.00 |
| Landed product cost | 8.00 |
| Other variable selling costs | 5.00 |
| Gross profit / margin | 12.00 / 60% |
| Markup on landed cost | 12 ÷ 8 = 150% |
| Contribution before fixed overhead | 20 − 8 − 5 = 7.00 |
Compare contribution with inventory exposure
Use the same observation window for all models. Record units available, fulfilled units, refunds, markdowns and ending stock. A model earning more per sold unit can still tie up more cash if many units remain unsold. Include sample and launch costs in the overall cash plan, while identifying which are one-time expenses rather than double-counting them in every reorder.
Make the next order conditional
Decide whether the next action is a reorder, a revised specification, a smaller range or a stop. Stress-test a lower selling price and higher return allowance using assumptions you label explicitly. Existing catalog styles have a minimum of 100 pieces per model; color and size splits and availability are confirmed for quotation. A low minimum does not make a trial profitable or remove inventory risk.
Frequently Asked Questions
Is a 100% markup a 100% margin?+
No. Selling an item for twice its cost gives a 100% markup and a 50% gross margin before other selling costs.
Is contribution the same as net profit?+
No. Fixed overhead and other business-level expenses still need to be considered.
Send your model or project requirements, quantities, size and color plan, and destination. Julie can confirm the applicable order route and what the quotation includes.
Existing-style wholesale starts from 100 pieces per model. Original-design custom production starts from 10,000 pieces. Color and size allocation, branding and packaging terms are confirmed separately.
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