The Money Leaks Hiding in Your Apparel Brand

Ever feel like your sales are growing but your bank account isn’t?

It’s not your imagination. Many apparel brands bleed money without even realizing it.

The problem isn’t always lack of revenue, it’s hidden money leaks.

The good news? Once you know where to look, you can patch those leaks and dramatically improve profitability, without needing more sales.

Here are the biggest money leaks I see in apparel brands (and how to fix them).

1. Returns That Aren’t Planned For

Returns don’t just sting your ego—they drain your margins.

Between shipping costs, restocking, and unsellable inventory, returns can quietly eat 10–20% of your revenue.

👉 Fix it: Track return reasons. If sizing is off, adjust your spec. If quality is slipping, work with your factory. Treat returns as data, not just headaches.

2. Too Many SKUs

It’s tempting to launch more products, thinking more options mean more sales. But every new SKU adds complexity: more samples, more MOQs, more cash tied up.

👉 Fix it: Focus on your hero products. The brands that scale don’t sell everything. They sell one thing really well.

3. Weak Factory Negotiations

If you’re accepting every MOQ and payment term your factory gives you, you’re leaving money on the table.

👉 Fix it: As your volumes grow, renegotiate. Ask for staggered deliveries. Treat your factory like a partner, not a vendor.

4. Overproduction

That “just in case” extra production run? It’s costing you more than you think. Extra inventory ties up cash you need for growth.

👉 Fix it: Produce to demand, not fear. Test smaller runs before scaling.

5. Marketing Spend Without ROI

Ads that “kind of” work, influencers who don’t convert, giveaways that grow followers but not customers—these are all silent money drains.

👉 Fix it: Track ROI on every dollar. If it doesn’t drive profit, cut it.

6. Lack of Profit Tracking by SKU

Here’s a big one: not all products are equally profitable. Some of your best-sellers might actually be your lowest-margin items.

👉 Fix it: Run a profit margin report by SKU. You might be surprised where your money is actually coming from.

The Next Step

Every dollar counts when you’re scaling. And if you’re tired of money slipping through the cracks, you don’t have to keep guessing.

Inside The Board at The Business of Apparel, we help founders tighten their margins, master their numbers, and build brands that are actually profitable—not just popular.

You’ll get: 

✅ Tools to track profitability by style

✅ Coaching on pricing and production negotiations 

✅ A support system to make smarter financial decisions

Because scaling isn’t about chasing revenue—it’s about protecting profit.

👉 Ready to plug your money leaks and scale sustainably? Join The Board at The Business of Apparel.