![How to plan and track the budget of your men underwear brand [template]](http://onlineyougrow.com/cdn/shop/articles/cov-budget-4_98c25a75-d6dc-40ba-8bcb-91f2a94e72a8.png?v=1715856439&width=1100)
If you don’t plan and track your men's underwear brand budget properly, you're setting yourself up for failure.
When we developed our strategy pack for men's underwear brands, we saw a lot of brand owners struggling with finances and planning.
They were disorganized, had no grasp of cash flow, and were drowning in financial troubles despite having substantial revenue.
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 brand's finances around and set you on the path to success!
Get the budget tracker tailored for underwear brands
Most underwear brand founders don't know how to plan and track their budget. This spreadsheet will help you.
Example of a full budget for underwear brands
Here is an example of a (very) detailed budget for a men's underwear brand, to give you some inspiration
1. Rent and Utilities
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Rent | Lease for office and warehouse space | $3,000 | $36,000 |
| Electricity | Power consumption for office and warehouse | $500 | $6,000 |
| 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 | $300 | $3,600 |
2. Salaries & Wages
| Position | Number of Employees | Monthly Cost per Employee | Total Monthly Cost | Annual Cost |
|---|---|---|---|---|
| CEO | 1 | $8,000 | $8,000 | $96,000 |
| Marketing Manager | 1 | $5,000 | $5,000 | $60,000 |
| Designers | 2 | $4,000 | $8,000 | $96,000 |
| Customer Service | 2 | $3,000 | $6,000 | $72,000 |
| Warehouse Staff | 3 | $2,500 | $7,500 | $90,000 |
| Accountant | 1 | $4,000 | $4,000 | $48,000 |
3. Inventory & Supplies
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Fabric | High-quality materials for production | $10,000 | $120,000 |
| Packaging | Boxes, labels, and tags | $2,000 | $24,000 |
| Office Supplies | Stationery, printer ink, etc. | $200 | $2,400 |
| Cleaning Supplies | Detergents, sanitizers, etc. | $100 | $1,200 |
4. Marketing & Advertising
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Online Advertising | Google Ads, Facebook Ads, etc. | $1,000 | $12,000 |
| Social Media Management | Managing social media accounts | $500 | $6,000 |
| Influencer Partnerships | Collaborations with influencers | $1,500 | $18,000 |
| Website Maintenance | Hosting, domain, updates | $200 | $2,400 |
| Email Marketing | Email campaigns and newsletters | $300 | $3,600 |
| Promotional Events | Special events and promotions | $500 | $6,000 |
5. Miscellaneous Expenses
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Equipment Maintenance | Regular maintenance of machinery | $300 | $3,600 |
| 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 | $500 | $6,000 |
| Staff Training | Training programs and materials | $200 | $2,400 |
Some underwear brands make 5x more profit than you!
We have studied the strategies of the best underwear brands in the world. Replicate them now!
What are the biggest expenses for a men's underwear brand?
Be mindful of these pitfalls. Here are five major costs every men's underwear 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 various fabrics, and prices can fluctuate based on quality, availability, and market 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 opting for premium materials that don’t add enough value to your product.
- Labor and manufacturingYour team is essential, but paying for their wages, benefits, and training can be costly. This expense is always high because you need skilled workers to ensure quality and efficiency. You can optimize labor costs by streamlining production processes, cross-training employees, and monitoring productivity. However, be careful not to underpay or overwork your staff, as this can lead to high turnover and poor product quality.
- Rent and utilities for your production facilityPrime locations come with high rent, but they can be beneficial for logistics and distribution. Utilities like electricity, water, and heating are essential but can add up quickly. To optimize these costs, negotiate favorable lease terms and invest in energy-efficient machinery and lighting. Overspending often happens when you choose a facility that's too large or too luxurious for your needs.
- Marketing and advertisingYou need to get the word out about your 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.
- Equipment and maintenance costsThis includes everything from sewing machines to packaging equipment. These are expensive because quality machinery and regular maintenance are crucial for smooth operations and product quality. 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 men underwear brand?
Here are practical tips to help you, as a men's underwear brand owner, optimize your budget and manage expenses more effectively.
| Expense | Tips to Optimize |
|---|---|
| Fabric Costs | Partner with local textile manufacturers for high-quality, sustainable materials at competitive prices. |
| Labor Costs | Implement a workforce management software to optimize production schedules and reduce overtime. |
| Utilities | Install energy-efficient machinery and LED lighting in your production facility. |
| Marketing | Run social media campaigns for your brand and collaborate with fashion influencers for organic exposure. |
| Packaging | Use eco-friendly, cost-effective 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 more cost-effective production facility. |
| 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. |
| Shipping | Partner with reliable, cost-effective shipping companies and offer bulk shipping discounts. |
| POS System | Choose a POS system that offers essential features with low transaction fees and integrates with your e-commerce platform. |
| Staff Training | Conduct regular in-house training sessions and use free online resources to keep your team updated on best practices. |
| Waste Management | Implement a fabric waste tracking system to minimize waste and recycle excess materials. |
| Technology | Invest in multi-functional sewing machines and utilize production management software for efficiency. |
| 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. |
| Customer Service | Use a customer service platform to manage inquiries efficiently and improve customer satisfaction. |
| Product Development | Conduct market research to understand customer preferences and develop products that meet their needs. |
| Website Maintenance | Regularly update your website to ensure it is user-friendly and optimized for search engines. |
| Branding | Invest in high-quality branding materials and maintain a consistent brand image across all platforms. |
Copy the tactics of the best underwear brands in the world!
There are underwear brands that make way more money than you do. We have studied their tactics. Get them now!
Expenses that are just useless for a men's underwear brand
Yes, some expenses for your men's underwear brand are just unnecessary. They don't contribute to increasing sales or improving customer satisfaction.
| Underwear Brand Expense | Reason It's Useless |
|---|---|
| Luxury Packaging | Overly elaborate packaging doesn't necessarily attract more customers and can be a drain on the budget. |
| High-End Fabric Blends | Unless you are targeting a niche market, most customers are satisfied with high-quality, mid-range fabrics. |
| Excessive Product Lines | A large variety of products increases inventory costs and leads to more unsold stock. |
| Top-Tier Manufacturing Equipment | State-of-the-art machinery 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 brand. |
| Multiple Packaging Designs | Having various packaging styles increases costs without adding significant value to the customer experience. |
| Overstaffing | Having more staff than necessary leads to higher labor costs without necessarily improving service quality. |
| Premium Subscription Services | Expensive subscriptions for industry reports or magazines often go unnoticed by customers. |
| Exclusive Materials | Using rare materials can inflate costs and complicate supply chains. |
| Costly Office Furniture | High-end office furniture is not always appreciated by employees 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 employees 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 Office Renovations | Constantly updating office decor and layout can be costly and disrupt operations. |
| Expensive Office Decorations | Elaborate office decorations are often ignored by employees and add to the cost. |
| High-End Office Supplies | Luxury office supplies are prone to damage and expensive to replace, often going unnoticed by employees. |
| Excessive Staff Meetings | Too many meetings can reduce productivity and increase labor costs. |
| Expensive Marketing Materials | Frequently redesigning marketing materials 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 Trade Show Booths | Specialized trade show booths are often unnecessary and add to costs without a proportional benefit. |
Stop working with a tight budget for your men underwear brand!
Managing a budget for a men's underwear brand when funds are tight can feel like a nightmare. 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 chasing after expenses. It's a life filled with stress and sleepless nights.
Yes, you can continue down this path, scraping together 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 money 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 men's underwear brands just like yours. Get them now!
Make your men underwear brand more profitable
We have studied the strategies of the best underwear brands in the world. All their tactics are explained in our pack!
