Everything you need to cost a garment fairly.

Fair Price is a pragmatic, replicable and scalable tool intended for garment factories and brands. The tool captures all elements of labour costs. As such, it empowers factories and brands with the information they need to determine fair (fact-based and bottom-up) prices that are calculated with the actual prevailing labour costs in a factory.

Fair Price, which was originally launched in 2021 by Fair Wear Foundation, is a tool which helps factories to carefully calculate the labour costs for a product style based on current or projected wage levels such as increased legal minimum wage, a CBA, or living wage.

Fair Price builds on the labour-minute costing (LMC) methodology, developed by Fair Wear Foundation. This methodology uses payroll data to calculate the total cost of increasing wages to a higher target wage level. This total annual cost is measured against data about the time (in minutes) required to make each garment to calculate a brand's share of higher labour costs. This methodology has been transformed into the Fair Price Portal.

As such, the Portal enables suppliers and buyers to determine the cost of one minute of labour in a factory, taking into account factory-specific variables such as workforce composition, actual overtime hours and bonuses paid, which forms the basis for the fact-based costing and negotiation of a product style, ensuring that the FOB price supports the wage level concerned.

While we encourage transparency in costing and pricing, it is the factories' prerogative to decide what information to share and with which customer. Fair Price helps factories to carefully calculate the labour costs for a product style based on current wage (for example the current legal minimum wage) and/or projected higher target wage levels such as a future legal minimum wage, CBA wage or living wage.