Pricing Printed T-Shirts - How Much Does It Charge
Pricing printed t-shirts is not an easy thing for those selling t-shirts. However, we have several strategies and tips to help you with how to price a shirt.
One of the most important questions we face is how much you should charge for your t-shirts or how many custom t-shirts are sold.
How your t-shirts are priced depends on many factors. Where you sell, your costs, how much you produce and what kind of T-shirts you sell are just a few of them.
The selling price of T-shirts matters because when you set a price too high, you risk not selling enough. It is important not to let a customer tell you that your price is too high.
However, even if you set a very low price, you cannot make enough profit this time. You will work hard but spin your wheels.
So let's find that sensitive point that allows your customer to order and keep you at work. Let's examine some of the components that will affect your t-shirt sales prices.
Your T-Shirt Production Cost
Your costs are a major factor in determining your selling prices. You need to know your costs before determining the selling price.
Some people try to do the opposite. First, they try to determine the selling price. But focusing on the selling price without even knowing the costs is a bad idea.
So let's examine some of the T-shirt production costs. You may not have thought about some of these.
In a cost-based pricing strategy, you get your labor and material costs directly and add your overheads to get your total costs.
Your direct labor cost includes the labor required to print your t-shirts. This is especially important if you have hired employees who print on t-shirts. How much do you pay someone per hour?
How much would you like to pay yourself for your labor, even if you don't pay someone else? Include your effort in the cost calculation. You are an entrepreneur - how much do you want to earn in your t-shirt business? You probably aren't doing this to provide a free service.
In this example, we'll be using $ 15 per hour as the charge. If it takes about a minute to load your t-shirt, pre-print it, print on the transfer, and remove the t-shirt from the hot print, you can print about 60 t-shirts per hour.
So your direct labor cost per T-shirt is $ 0.25 each.
Your material costs include everything you use to produce your t-shirt. In this case, you will have an empty T-shirt and transfer.
If you had to pay the shipping cost to pick up any of your supplies, be sure to include this price when calculating it.
The next part of the equation is your overhead. Many stores forget to consider this when determining what a good pricing price for a T-shirt is.
They think they make money with every order, as they demand more than the direct cost of the materials. But at the end of the month, after paying other bills such as rent, utilities, and other overheads, they appear to make almost no profits.
So a good rule of thumb that works and applies to most companies is that 15% overhead is charged.
Your T-Shirt Brand Quality
Another aspect of your custom t-shirt pricing is the quality of the shirts you sell and the quality you offer to your customers.
If you are using the cheapest t-shirt you can get, you wouldn't want to charge a high price for the finished t-shirt.
On the other hand, if your brand uses premium clothing and that's what your customer expects, then don't take responsibility for that either. If you're selling a premium product, you won't want to compete on price with the bargain printer down the street.
Therefore, include your brand perception in your pricing strategy. At the end of the day, your price; will convey what is the value of your product and what your customers perceive it as value.
Pricing Printed T-Shirts: Wholesale Prices - Retail Pricing
One of the last parts of pricing printed t-shirts is where you sell and to whom.
Do you sell your t-shirts online or out of the window?
Are you selling to groups or individuals?
Selling your t-shirts online or in your local shop window can affect your t-shirt selling price.
If you are selling online, there will be some large online t-shirt stores where you should compare your pricing.
If you sell locally, you need to know your local competition and your customers' purchasing options in your area.
You should also consider the differences between wholesale and retail.
If you're selling to a group, that would be wholesale. For many people, you only have one recipient. Examples of some wholesale customers are a school, a sports team, a business, etc. can be given.
Retail will be if you are selling to each consumer the same way you would buy in a store. If you sell t-shirts online at your store, this would be an example of retail.
However, your pricing will be very different for both types of customers here. We'll tell you how to price for both of these.
T-Shirt Pricing Strategies
Now that you know some variables that will affect your t-shirt sales prices, we can now share two easy ways to determine your pricing for printed t-shirts:
Competitor Pricing Strategy
The first strategy is to investigate your competitors. This strategy is very popular.
As we mentioned above, your competitors can differ depending on where you sell.
When you see what your competitors are selling for the same quantity, similar t-shirt style, ink color count, and visual placements, you can get an idea of your t-shirts selling.
This is a good starting point, but make sure you cover your costs and make a profit.
Cost-Based Pricing Strategy
The second strategy for pricing printed t-shirts is your pricing based on cost.
This is when you take your T-shirt production costs we mentioned above, add them together, and add the profit margin you want.
Add your direct costs and labor + overheads = your total costs.
To find out your wholesale price, multiply your costs by x 2.
To price your t-shirts at retail, multiply your wholesale price by x 2.
This strategy allows you to add the profit margin you want for what you want paid for and sell your t-shirts for the value of the brand.
Remember, this is where you can still get into some troubled waters. Your formatting percentage may require some extensive research and trial and error to find that sore spot.
Our example above multiplies your costs by 2. This would be a 50% profit margin or a 100% increase. This is a good place to start, but you may need to adjust it to suit your strategy.
Also, make sure you know the difference between the profit margin percentage and the markup percentage and the profit margin percentage. These are two different things and are calculated differently.
Some online calculators help you find your profit margin and formatting.
Increase Your Profit Margins
An easy way to increase your profit margin is to lower your costs.
One of the advantages of hot press and serigraphy printed transfers and the T-shirt printing is the group page.
You can fit multiple images on your transfer page for the same pricing. Therefore, you reduce your printing cost as your image price will be less.
There are also price calculators to help you determine your costs.