5 Retail Pricing Methods for Custom Apparel
Learn how to price your custom apparel to profit. I have included five pricing strategies!
Simple Cost Pricing
This is the pricing method that we recommend. With this method, you find the price of your custom apparel by determining how much it will cost to make the apparel.
Multiply the sum of the transfer and t-shirt by 2 to find the selling price
- (T-shirt + Transfer) x 2 = Price
- $7.95 x 2 = $15.90
This pricing method allows you to offer lower prices for larger quantities. With this pricing method, for every so many t-shirts sold, your customer will receive a certain amount off of their final price, or a t-shirt for free.
- For every [number] sold receive [number] off
For this example, the bulk price will take effect with every 10 t-shirts sold.
- For every  t-shirts sold, receive the price of  t-shirt off of the final price
- If one t-shirt cost $24.99; multiply the cost [$24.99] by the total number sold  to find the total price without the bulk discount [$249.90]
- Subtract the cost of one t-shirt [$24.99] from the total cost [$249.90]
- Total cost [$249.90] minus the bulk discount [$24.99] equals the bulk price [$224.91]
Brand Popularity (High Demand)
Brands in high demand will be well know and sold at widespread retail locations. If your product is somewhat popular but not well known, adding to the final price may just lead customers to your competitors.
To determine the price of the higher demand custom apparel, take the price of an equivalent item that has less demand and add a pre-determined percentage to it.
- Example: If the price of the lower demand t-shirt is $24.99 and you believe your product is worth an additional 20%
- Take the price of the less popular t-shirt and add the percentage to get the price of the more popular item
- Price + % = High Demand Price
- $24.99 + 20% = $29.99
Why do businesses offer sales? Customers often find appeal in sales price over the original price. They like to know that they are getting a deal. If you’re looking for a reason to add sales temporarily to test how they’ll work in your store; try adding sales specifically for back to school, a sports season, or a holiday.
If you will set up sales as a regular occurrence, place your retail price a little higher to make up for the sales. For this example, we want to keep our lowest possible price at close to $20
Determine how much your custom apparel will cost for each percentage off
- If your t-shirt is $24.99 at full price and you want to keep the final price close to $20, you can offer discounts up to 20% off of the original price
- Start with the full price [$24.99] and subtract the discounted percentage [20%] to get the sales price [$19.99]
- Our goal was to stay close to $20. Since 20% off gets you close to $20, your sales price will need to be between 1% and 20% off of the original price
With this pricing method, you will need to do your research to find a fair price to offer your custom apparel at. There is not a mathematical equation that I can provide for this method because it will be purely research of what your direct competitors offer.
When you have the same market as a direct competitor and a similar product, your customers will notice. If their product is priced a lot higher than yours, you probably have some room to go up in your price without risk of losing your customers. In the same sense, if your competitors have a lower price than yours, you may need to bring your price down to appeal to more customers.
Also consider the region where your target market is from. If the cost of living is higher, typically, the price of the apparel is higher as well.
Take these pricing methods into consideration when creating the retail prices for your custom apparel shop! If one method does not work for you, try some of the other methods. Here is a downloadable recommended retail price list to help you get started!