![How to plan and track the budget of your lingerie brand [template]](http://onlineyougrow.com/cdn/shop/articles/cov-budget-4_a7802c6a-d86e-42d0-b20a-bbfe6732aa37.png?v=1715856438&width=1100)
If you don’t plan and track your lingerie brand's budget properly, you're setting yourself up for failure.
When we developed our strategy pack for lingerie brand owners, we saw a lot of entrepreneurs struggling with finances and planning.
They were disorganized, had no grasp of cash flow, and were drowning in financial troubles despite having substantial sales.
Don’t let this be you—stand out and succeed.
We’ve created a small, free tool to help you get started: our Budget Tracker and Planner. Let’s turn your lingerie brand's finances around and set you on the path to success!
Get the budget tracker tailored for lingerie brands
Most lingerie brand founders don't know how to plan and track their budget. This spreadsheet will help you.
Example of a full budget for lingerie brands
Here is an example of a (very) detailed budget for a lingerie brand, to give you some inspiration
1. Rent and Utilities
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Rent | Lease for retail space | $4,000 | $48,000 |
| Electricity | Power consumption for store and office | $600 | $7,200 |
| Water | Water usage | $100 | $1,200 |
| Internet & Phone | Internet service and business phone | $150 | $1,800 |
| Waste Removal | Garbage and recycling services | $100 | $1,200 |
| Insurance | Property and liability insurance | $400 | $4,800 |
2. Salaries & Wages
| Position | Number of Employees | Monthly Cost per Employee | Total Monthly Cost | Annual Cost |
|---|---|---|---|---|
| Store Manager | 1 | $3,500 | $3,500 | $42,000 |
| Sales Associates | 3 | $2,000 | $6,000 | $72,000 |
| Marketing Specialist | 1 | $3,000 | $3,000 | $36,000 |
| Inventory Manager | 1 | $2,500 | $2,500 | $30,000 |
| Customer Service | 2 | $2,000 | $4,000 | $48,000 |
3. Inventory & Supplies
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Lingerie Inventory | Bras, panties, sleepwear, etc. | $15,000 | $180,000 |
| Packaging Supplies | Boxes, tissue paper, bags | $500 | $6,000 |
| Store Supplies | Hangers, display racks, mannequins | $300 | $3,600 |
| Cleaning Supplies | Detergents, sanitizers, etc. | $100 | $1,200 |
| Office Supplies | Stationery, pens, printer ink, etc. | $100 | $1,200 |
4. Marketing & Advertising
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Online Advertising | Google Ads, Facebook Ads, etc. | $500 | $6,000 |
| Social Media Management | Managing social media accounts | $600 | $7,200 |
| Print Advertising | Flyers, posters, magazine ads | $300 | $3,600 |
| Website Maintenance | Hosting, domain, updates | $150 | $1,800 |
| Email Marketing | Email campaigns and newsletters | $200 | $2,400 |
| Promotional Events | Special events and promotions | $300 | $3,600 |
5. Miscellaneous Expenses
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Equipment Maintenance | Regular maintenance of store equipment | $200 | $2,400 |
| Uniforms | Staff uniforms | $100 | $1,200 |
| Licenses & Permits | Business licenses, etc. | $100 | $1,200 |
| POS System | Point of Sale software and hardware | $150 | $1,800 |
| Contingency Fund | Emergency repairs and unexpected costs | $300 | $3,600 |
| Staff Training | Training programs and materials | $200 | $2,400 |
Some lingerie brands make 5x more profit than you!
We have studied the strategies of the best lingerie brands in the world. Replicate them now!
What are the biggest expenses for a lingerie brand?
Be mindful of these pitfalls. Here are five major costs every lingerie brand owner needs to consider, along with some tips on how to manage them effectively.
- Fabric and material costsThese can take up a significant portion of your budget. You're dealing with delicate fabrics and intricate designs, and prices can vary based on quality, availability, and trends. To keep these costs in check, focus on bulk purchasing, negotiate better prices with suppliers, and minimize waste. It's easy to overspend by buying too much or opting for premium materials that don’t add enough value.
- Your teamYour team is your foundation, but paying for their wages, benefits, and training can be costly. This expense is always high because you need skilled designers, seamstresses, and sales staff to ensure quality and customer satisfaction. Optimize labor costs by scheduling efficiently, cross-training employees, and monitoring productivity. However, be careful not to underpay or overwork your team, as this can lead to high turnover and poor quality.
- Retail space and utilitiesPrime retail locations come with high rent, but they can attract more customers. Utilities like electricity, heating, and water are essential but can add up quickly. To optimize these costs, negotiate favorable lease terms and invest in energy-efficient lighting and climate control. Overspending often happens when you choose a location that's too large or too luxurious for your needs.
- MarketingYou need to spread the word about your lingerie brand, but advertising can be expensive, whether it's online ads, social media campaigns, or traditional media. Optimize this expense by focusing on cost-effective methods like the ones we recommend. Overspending can occur if you invest in flashy campaigns without a clear return on investment.
- Production equipment and maintenance costsThis includes everything from sewing machines to display fixtures. These are expensive because quality equipment and regular maintenance are crucial for smooth operations and customer satisfaction. Optimize by investing in durable, energy-efficient equipment and maintaining it regularly to avoid costly breakdowns. You can overspend by going for the latest high-tech gadgets you don’t really need.
How to spend less with your lingerie brand?
Here are practical tips to help you, as a lingerie brand owner, optimize your budget and manage expenses more effectively.
| Expense | Tips to Optimize |
|---|---|
| Fabric Costs | Partner with local textile suppliers for high-quality, sustainable materials at competitive prices. |
| Labor Costs | Implement a scheduling software to optimize staff hours and reduce overtime. |
| Utilities | Install LED lighting and energy-efficient machinery in your production facility. |
| Marketing | Run social media contests for your lingerie brand and collaborate with fashion influencers for free exposure. |
| Packaging | Use cost-effective, eco-friendly packaging and offer discounts for customers who opt for minimal packaging. |
| Equipment Maintenance | Set up a maintenance log for regular checks and servicing of sewing machines and other equipment. |
| Rent/Mortgage | Negotiate lease terms during renewal or consider moving to a less expensive location. |
| Insurance | Regularly review insurance policies to ensure they meet current needs and compare rates annually. |
| Inventory Management | Use inventory management software to track stock levels and reduce overproduction. |
| Staff Training | Conduct regular in-house training sessions and use free online resources to keep your team updated on the latest trends and techniques. |
| Waste Management | Implement a fabric waste tracking system to minimize waste and donate excess materials to local craft groups. |
| Technology | Invest in multi-functional sewing machines and utilize design software for pattern making and inventory management. |
| Office Supplies | Purchase supplies in bulk and go paperless where possible with digital order systems. |
| Licensing and Permits | Stay up-to-date with local regulations to avoid fines and costly renewals. |
| Transportation | Plan delivery routes to maximize efficiency and reduce fuel costs. |
| Product Development | Use 3D design software to prototype new designs, reducing the need for physical samples. |
| Customer Service | Implement a CRM system to manage customer interactions and improve service efficiency. |
| Website Maintenance | Choose a cost-effective e-commerce platform and regularly update your website to enhance user experience. |
| Photo Shoots | Collaborate with local photographers and models for cost-effective photo shoots. |
| Trade Shows | Participate in virtual trade shows to reduce travel and accommodation expenses. |
| Sample Production | Limit the number of samples produced and use digital mockups for initial feedback. |
Copy the tactics of the best lingerie brands in the world!
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Expenses that are just useless for a lingerie brand
Yes, some expenses for your lingerie brand are just unnecessary. They don't contribute to increasing revenue or enhancing customer satisfaction.
| Lingerie Brand Expense | Reason It's Unnecessary |
|---|---|
| Luxurious Packaging | Overly extravagant packaging doesn't necessarily attract more customers and can be a drain on the budget. |
| High-End Fabric Brands | Unless you are a luxury brand, most customers are satisfied with high-quality but reasonably priced fabrics. |
| Extensive Product Lines | A large product range increases inventory costs and can lead to more unsold items. |
| Top-Tier Manufacturing Equipment | State-of-the-art manufacturing equipment is not always necessary and can be cost-prohibitive. |
| Print Advertising | Traditional print ads often have a lower return on investment. Don’t include them in the marketing strategy of your lingerie brand. |
| Multiple Store Layouts | Having various store layouts increases costs without adding significant value to the customer experience. |
| Excessive Staff | Overstaffing leads to higher labor costs without necessarily improving service quality. |
| Premium Subscription Services | Expensive subscriptions for fashion magazines or music often go unnoticed by customers. |
| Exclusive Fabric Types | Using rare fabrics can inflate costs and complicate supply chains. |
| Costly Store Fixtures | High-end store fixtures are not always appreciated by customers and can be a significant expense. |
| Custom Printed Tags | Personalized tags are a minor detail that most customers overlook, and they can be expensive. |
| Unnecessary Software | Paying for software with features you don’t use is a waste of resources. |
| Premium Water Brands | Most customers are content with filtered tap water, making expensive bottled water unnecessary. |
| Extra Delivery Vehicles | Maintaining a larger fleet than needed increases operational costs. |
| Excessive Membership Fees | Paying for multiple industry memberships often yields little benefit. |
| Overly Frequent Store Redesigns | Constantly updating store decor and layout can be costly and disrupt operations. |
| Expensive Store Displays | Elaborate displays are often ignored by customers and add to the cost. |
| High-End Store Furniture | Luxury store furniture is prone to damage and expensive to replace, often going unnoticed by customers. |
| Excessive Staff Meetings | Too many meetings can reduce productivity and increase labor costs. |
| Expensive Catalog Designs | Frequently redesigning catalogs is costly and often unnecessary. |
| Unused Promotional Materials | Ordering more promotional items than needed leads to waste and unnecessary expense. Get our marketing budget planner template. |
| Paid Directory Listings | Many free listing options are available, making paid listings often redundant. |
| High-End Event Equipment | Specialized event equipment is often unnecessary and adds to costs without a proportional benefit. |
Stop working with a tight budget for your lingerie brand!
Managing a budget for a lingerie brand when funds are tight can feel overwhelming. It's like being trapped in a cycle where any unexpected expense can throw you off balance.
This constant pressure makes it nearly impossible to invest in growth projects, leaving you always scrambling to cover costs. It's a life filled with stress and sleepless nights.
Yes, you can continue down this path, pinching pennies and barely making ends meet. But there's another part of the equation you might be overlooking. Instead of just trying to cut costs, you can focus on growing your revenue. More income means more breathing room and more resources to invest in your brand.
And no, you don't necessarily have to spend money to grow. There are plenty of zero-cost initiatives and strategies that can help you increase your revenue by 10%, 20%, or more. We've detailed all of these strategies in our guides, after studying dozens of lingerie brands just like yours. Get them now!
Make your lingerie brand more profitable
We have studied the strategies of the best lingerie brands in the world. All their tactics are explained in our pack!
