Which term describes the price the designer must pay for goods?

• A. Cost
• B. Net pricing
• C. Wholesale pricing
• D. List price

Answer: (A)

The actual amount the designer must pay to obtain goods is the cost. This reflects the true expense to acquire items from suppliers and serves as the baseline for budgeting and pricing. It differs from the list price, which is what clients see as the selling price, and from wholesale pricing, which is the trade price offered to retailers or trade accounts, as well as from net pricing, which is the price after discounts or rebates. Understanding cost lets you calculate the appropriate markup to cover overhead and profit, ensuring the project stays within budget. For example, if a fabric costs $12 per yard to purchase, that $12 is the cost—the starting point for determining the client price, not the higher list price.