Now that plush hoodie costs $24.50 before printing instead of $30.
If we’re targeting our markup at $4.50 per garment, it’s a 122.5% markup. It may be easier to set a dollar amount for your markup on expensive items. That’s before you’ve even applied the cost to print the garment! But a higher markup may make the price too high for some customers.įor example: a $20 wholesale price translates to a $30 customer price with a 150% markup. It’s not unreasonable to keep a 150% markup for some of these items. Your markup should go lower, and your printing fee higher, as the price of the goods gets higher. If you’re paying more than about $15 for something you’re printing on, it’s a premium item. Marking up mid-tier items appropriately is essential. You may have to pay to replace spoiled garments, so it’s vital to cover your costs with a higher printing or setup fee. You may also find a quirk in the math: you’re netting a larger dollar amount, even if the markup percentage is lower! Some examples of clothing with lower markups: A $10 sweater becomes $15 for the customer. Garments that cost $10 from a wholesaler are typically marked up by about 150%. You can offset the lower markup with a higher printing cost. Many shops find that the total they net gets lower as the garment’s price goes up. Middle-Tier Item Markups (Hoodies and more)Īs garments become more expensive, your markup may actually go lower.
The less a garment costs, the more you can mark it up. This fixed cost does not depend on how much you paid for the t-shirt. But there is a real labor cost for procuring, processing, and printing the shirts in your shop. It’s not unreasonable to price a basic screen printed Gildan t-shirt at $10 or more. Why should your markup be higher on less expensive items like t-shirts? Because you can easily justify the prices to a customer. This seems counter-intuitive, but there is a good reason. Basic Item Markups (T-Shirts and affordable goods)īasic goods should have the highest markup (200% or more).
#Calculate cost per impression software#
You can use screen printing management software to help you automate this process. Your standard garment markups can be easily broken down into three categories: basic items, mid-tier items and premium items. It’s crucial that you cover the costs of procuring unprinted goods. This means if a garment from a wholesaler costs $5, you should charge between $7.50 and $10. Most people explain the same markup as a “fifty percent (50%) markup.” The industry’s standard markup is 150 to 200% of the garment’s wholesale cost.
Your garment markup is the first place that you should make profit. This takes times and money, and it’s the first step to printing custom t-shirts. You’re paying to buy t-shirts from wholesalers.
#Calculate cost per impression how to#
How to make a screen printing pricing matrixĭownload Here 1.Price for their business, not against their competitors.Here’s what successful shop owners do to price their jobs: The reality is that you’ll need to price every unique job differently. Instead of trying to develop an all-encompassing formula, it’s best to follow some general strategies for smarter pricing. Some owners leave nothing for granted and account for things like their shop’s overhead, time on press, capacity, impressions, number of colors, t-shirt costs and so on – you absolutely should account for those nitty-gritty details. But that’s not all there is to pricing. You can get extremely detailed with pricing. (Garment Price * Garment Markup) + (Printing Fee – Quantity Discount) = Price Per Garment The number one question that screen printing shops have is a big one:
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