Without getting into the details, this is pretty much dead on. We make, by far, our lowest margins on hoodies and crews, across the board. As a business there is no way we could survive financially if that was all our customers bought. When we beefed up the quality and detailing on our hoodies for this Winter we increased the pricing, but not nearly enough to cover the increase cost to produce it at this level. Flatlocked stitched seams, 400gsm weight organic cotton, and double folded side gusset ribbing alone cost more than the increase we had in pricing this year. This is why some clothing brands charge $160+ for pretty much the same hoodie we make but with a boxier fit versus our slim cut.
Cotton prices are up 300% over the past 3 years. It is one of the reasons brands try to use Poly blends or 100% Poly. It pills and is not as soft, but is no where near the cost to use high quality cotton. Those who understand attention to detail and the time and effort that goes into our hoodies get it, those who don't have never been a focus for us. Not everyone sees the value in that type of stuff and that is totally fine. Those aren't the people we make our clothing for.
Anyone can email us at firstname.lastname@example.org if they are curious about pricing on products. We share as much info as we can to help folks understand our pricing. Although people who own their own brand or have made clothing before typically think we are underpriced when looking through our line in our boutiques. I tend to agree with them.
Anyways, hope that helps explain it a little.