In this page

  • Understanding How to Price T-Shirts
  • Assess and analyse your expenses
    • Design cost
    • Production cost
    • The calculating formula for the optimal price
  • Factors to Consider When Pricing Your T-Shirts
  • T-Shirt Pricing Tips & Strategies
    • Market-Oriented Pricing (Researching the Market to Price T-Shirts)
    • Above or Below the Market Average Pricing
    • Bundle Products for More Revenue
  • Conclusion: Starting a Merch Business


Understanding How to Price T-Shirts

Starting a t-shirt business may be an exciting enterprise, but sorting out the financial aspects of the business can be intimidating. Before you can even begin to contemplate determining a pricing structure for your t-shirts and adding a profit margin, you must first examine all of your expenditures. So that you can begin your business out on the proper foot, I'm here to assist you gain a better grasp of all the costs related with selling personalized t-shirts.


Assess and analyse your expenses 

When it comes to selling your clothing line online, it is essential to be aware that there are financial considerations involved in doing so. Customized apparel has the potential to be an excellent tool for boosting sales and establishing a name for a company when proper planning and financial considerations are used. But, you need to assess how much it is costing you to produce your clothing line. Remember, you want profit, not losses on your dime, because it's an investment. Even if growing a business can be a long journey, you have to find ways to reimburse production costs and make a profit margin. It may include: 

    • The production cost
    • The shipping
    • The design team
    • Your marketing platform, like Shopify, Google Ads, etc.

Design cost 

If you need a team of graphic designers for your custom t-shirts, you will need to factor in their billing costs when determining the optimal selling price. Let's look at two methods for calculating the design cost.

    1. Design bill received amount of delivered designs = design cost for one shirt design
    2. Design bill received your fixed profit margin = How much t-shirt will I need to sell

It is important for you to understand the cost and factor in this information if you want to generate profits!


Production cost

When it comes to pricing your t-shirts for retail, the production cost is something you should always keep in mind. You don't want to cut corners and risk compromising on quality, so it's worth investing a bit more on the factory side to ensure that your t-shirts come out looking and feeling great. This means that you should expect to pay more than a dollar or two per t-shirt in order to get a retail-quality product. The good news is that this kind of investment can pay off in the long run. When your customers are satisfied with the quality of the t-shirt they've purchased, they're more likely to spread the word and come back for more. This is how you can create a successful brand.


  • Blank garment cost + Screen Printing + Retail finishes = cost per t-shirt


The calculating formula for the optimal price

Once you have determined your t-cost, you can use it to calculate a price based on your desired profit margin. According to an article in Entrepreneur, most retailers aim for a profit margin of approximately 50 percent. Our pricing strategy is an effective method for covering expenses and generating a profit. Let's look at our formula below: 

The retail price of a t-shirt is equal to the cost to create it divided by the percentage of profit you want to make, multiplied by 100. Which looks like this : 


    • Price = (producing cost ÷ (100 - profit margin in percent %)) x 100
    • Example: Price = (7$ ÷ (100 - 0.5)) * 100)


Also, remember that every hand that a garment touches, it doubles. If you want to sell your clothing in stores and E-Commerce, everybody will need a part to make profit. For example, if you pay 15$/t-shirt, you can sell it for 30$ and you will retail for 60$. is a sweet spot to get in Ottawa to sell your custom apparel. 

Factors to Consider When Pricing Your T-Shirts 

The first rule to market a product is always to keep in mind that humans are beings of emotions. 


T-Shirt Pricing Tips & Strategies

When pricing T-shirts, it is essential to remember that people are emotional creatures. When determining the optimal price for your t-shirts, it is essential to consider human behavior and emotion, despite the temptation to use a formulaic approach. In fact, an estimated 90 percent of retail prices end in "9" or "5", indicating that the majority of consumers prefer pricing that concludes with a round number. (Salehoo

By understanding how people may react to different prices, you can determine a price that will convince them to choose your t-shirts over those of your competitors. Consider that people do not always act rationally when it comes to pricing and that the emotional response to a price can be just as significant as the actual cost.


Market-Oriented Pricing (Researching the Market to Price T-Shirts)

Market and competitive analysis is a good start. Knowing the average market worth of a t-shirt and competitive prices will help you choose the best pricing approach, such as above, below, etc. Knowing what other shops and clothing brands are doing will help you set your t-shirts apart from the generic product. 

Above or Below the Market Average Pricing

It's about working either from a value-based sales perspective or a volume-based perspective. The lower the price of your t-shirt compared to your competitors, the more you will sell, but the more you will need to sell to make a relevant profit. On the other hand, you may favor fewer sales but a higher profit per t-shirt, which means you price your t-shirt higher than your competitors. In other words, it all depends on your brand identity.


Bundle Products for More Revenue

Bundling products is a successful strategy for increasing online sales income since it enables buyers to purchase many items in a single transaction. Bundling products allows customers to acquire items they may not have considered purchasing separately and makes it easier for them to purchase the products they do desire.

Bundling products also enables you to offer customers better prices, since they receive more for their money. This encourages customers to buy multiple things in a single transaction, which can result in increased sales and revenue. In addition, combining products might inspire buyers to purchase items they may not have considered separately, thus boosting overall sales.

Bundling products can also provide clients with the convenience of purchasing many items in a single transaction. This can make the checkout process for clients faster and more efficient, and it can also minimize the time required to process orders. In addition, you may construct bespoke bundles that buyers may be interested in by combining products. These personalized bundles can provide clients with a greater value than if they purchased the goods separately. If you’re on Shopify, you can use the powerful Bold App for bundle products.


Conclusion: Starting a Merch Business

Starting a clothing business, especially one that focuses on T-shirts, is a fantastic way to enter the e-commerce industry. Nonetheless, it is essential to perform due diligence in studying the industry, investigating rivals, and setting sustainable prices for your products. The market for t-shirts is highly competitive, so keeping up with trends and pricing tactics can assure your business's success. Taking the time to thoroughly analyze the market and plan your approach will yield long-term benefits.

Our fulfillment program can help you if you already sell online or want to start. Leave the picking and packing to us while you focus on designing and selling your high-quality custom merchandise.