Do you want to sell T-shirts? If so, you need to know the prices of T-shirts for how to expenses and profits.
What is Pricing, Printing and Selling in the T-shirt Industry? What are the correct sales prices for custom t-shirts? What actions will make the purchase cheaper? How many shirts do you want to buy? Is it worth it to increase spending?
In order to successfully sell t-shirts, we have compiled a list of steps to find the best price for your t-shirts, taking into account their cost and much more!
Table of contents:
- Understanding Your Costs
- Potential Profit Calculation
- Where to sell by volume
Table of Contents
Step 1: Understand Your Costs
T-shirt prices depend on a number of factors, including the cost of making the T-shirt, software or marketplace costs, and professional design fees. In order for T-shirt sales to be profitable, it is important to keep the retail price low.
Pricing Tips: Reduce costs so you can compete when selling online or offline.
Shirt production costs
You need to print shirts to start selling. Generally, the more ink colors you use, the more it will cost. It’s time to pay for both quality and quantity. It’s cheaper to buy in bulk or in bulk, but you don’t want to bulk buy more than you can sell.
Individual prices for T-shirts are also more expensive. You can buy a standard t-shirt that represents your brand and not create t-shirts for clients. This can significantly reduce your selling prices.
There is a difference between premium and regular printed clothing. Premium clothing is much better quality, but also more expensive. What is the cost of producing different types of shirts?
Your task is to find sweet spot shirt prices.
Software or Marketplace Costs
Software or market costs are primarily operating costs. This means that they are not involved in the actual production of the product. However, they are still important when calculating overall costs. Software features are an important part of a well-defined sales strategy.
- Etsy: many commissions in the market
- Shopify: Free trial but more advanced.
- Sellfy: Suitable for Beginners and Free Trial Professional Design Fees
When it’s time to start developing your t-shirt idea, you need to consider whether you want to do it yourself or hire a professional.
Keep in mind that when printing, more colors will likely mean higher costs. For this reason, you’ll want to keep your designs simple so you don’t pay high production costs. In many cases, a simple two-tone outfit can look just as great as a crazy multi-color one!
Design tools for self-creation:
- Adobe Photoshop: Expensive
- Canva Free and Premium
- Custom Ink: Difficult to move platforms
Outsourcing platforms for hiring professionals:
- Fivver: low to medium cost. Depends on the cost of the freelancer.
- UpWork: low to medium costs. Depends on the cost of the freelancer.
Aside from design costs, here is a list of 11 things you can outsource to save money on your business.
Shipping cost (if online)
Shipping costs can minimize sales if the cost is not included in the price of the T-shirt. If you are not a dropshipper, you may need to calculate both inbound shipping to you and outbound shipping to the customer. This can add up very quickly. The selling price can be basically the shipping cost once everything is settled.
Shipping Tip: You may want to adjust the settings in the US-only online marketplace.
Most people are afraid of the excessive shipping costs associated with shipping by sea.
Step 2: How much profit can I make?
Having figured out the costs of producing your shirt, you may be wondering how can I get paid? This step will discuss the strategy to follow to figure out how much to charge per shirt and create sales.
Most popular pricing strategy questions
- Competitive prices: Can you sell a T-shirt at market prices or at competitors’ prices?
- Creaming the Price: Can you advertise your T-shirt as a luxury item and sell it initially for the highest possible price?
- Penetrating Pricing: Can you offer your T-shirt at the lowest price?
- Value based pricing. Can you do research to find out what value a customer perceives for a shirt?
- Bundle pricing: Can I sell multiple T-shirts together and get a discount on the total price?
The Gross Margin Formula and Margin Percentage can help you figure out where the selling price might meet with a paying customer along with a healthy margin.
Gross profit formula for T-shirts:
(Price of T-shirt) minus (Marketplace Fees + Design Cost + Software Fee + Product Cost)
= Gross profit
Profit Margin Percentage for T-shirts:
Gross profit per t-shirt divided by the price of the t-shirt
= Profit margin % per T-shirt
Step 3: Where to sell?
Custom T-shirts can be sold in various places. We would recommend starting selling online due to the scale of the leads. Prices for T-shirts can vary greatly depending on where they are sold.
Other online marketplaces
A popular option is to sell your t-shirt on online shirt marketplaces. Here are some examples:
- tee in public
- Tispring
- Yeti
- Threadless
- tostadora
- viral style
- Zazzle
local community
Another option outside of the online space is to sell your T-shirt to the local community. The main costs will fall on the store or the organizer of the event. Here are some examples:
- pop-up store
- Small local shop
- Retail store
- Grocery store
Create your own store
Another option is to create your own online store to sell T-shirts. Here are some examples:
- Shopify: Must create your own reach, more advanced.
- Sellfy: Must create your own reach, suitable for beginners.
- Amazon: Lots of inventory and storage fees if my Amazon is fulfilled
Conclusion
The selling price of a T-shirt depends on many factors. But like any other business, if you calculate the cost of the T-shirt first, you will have a good idea of where to price the T-shirts. Strengthening the retail price at a high margin is essential to a successful retail business.
However, as already mentioned, don’t set a high price or customers will run away from buying your t-shirt.
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