OpenCosting

Run apparel by EBITDA, not surprises.

Run the business by the numbers, not emotions.

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The OpenCosting Principle

EBITDA is decided long before it is reported.

OpenCosting exists to make that decision window explicit—and managed.

Where EBITDA Is Consumed

Simplified apparel P&L waterfall A simplified P&L waterfall showing revenue, major cost blocks, and EBITDA, highlighting external production cost as the largest cost block. Revenue 100% External Production Cost -45% Logistics -10% Staff/ Employees -25% SG&A -5% EBITDA 15% Largest block to govern early
Most brands argue over the small numbers. EBITDA moves in the big blocks—especially external production cost.

The OpenCosting Control Loop

The OpenCosting Control Loop A four-step loop: Economic Intent, Early Cost Exposure, Irreversibility Gate, and Variance Attribution, connected clockwise by arrows. EBITDA Guardrails Margin floor, volatility budget, complexity cost ceiling. Unit Economics Forecast Driver-based EBITDA view early. Sensitivities, not precision. Commitment Gate Before PO/minimums, lock the economics you’re underwriting. EBITDA Bridge Plan vs actual by driver. Update model and guardrails.
Simple to understand. Hard to operate without judgment.

If any of this feels familiar, your EBITDA is being decided without you:

  • Collections approved emotionally, numbers justified later
  • Savings hunted after commitments lock cost
  • Margin erosion explained as market reality
  • Volatility that depresses valuation conversations

What it is

A governance discipline that makes margin decisions explicit, early, and auditable—built for volatility, board scrutiny, and valuation conversations.