How To Calculate Wholesale Prices on Custom T-Shirt Printing
Many people who dive into creating custom t-shirts try to turn the hobby into a more lucrative endeavor. You can sell your t-shirts online, at local events, or to wholesale clients who are looking for large quantities of custom shirts. One of the most common challenges that new sellers run into is deciding how much to sell these shirts for. To help you get started, here are a few tips on how to calculate wholesale prices on custom t-shirt printing.
The direct costs include the money you know you have to spend on your materials. For example, if a batch of 50 shirts costs you $160, you can calculate that the direct cost of each t-shirt is around $3.20. Aside from the shirts, you will need to account for the prices of vinyl, transfer tape, and other necessary materials.
Other expenses may vary depending on your base of operations. For example, if you have employees, you must take into account their salaries. A worker who gets paid $15 an hour, for instance, may be able to print 50 shirts in one hour, so an additional expense to factor into the total cost would be $0.30 per shirt. You should also take into consideration any overhead costs to cover utilities and other factors. A good overhead estimate is 15 percent of your direct costs per shirt.
The Final Price
Once you have the general numbers regarding your materials, your overhead, and other expenses, you can figure out how to calculate wholesale prices on custom t-shirt printing. If you spend $3.20 per shirt $1.50 on each transfer, that will give you $4.70 in direct costs. Next, 15 percent of that cost equals $0.71 in overhead expenses, plus the $0.30 for labor on each shirt. In total, you’re looking at $5.71. A helpful rule of thumb for wholesale pricing is to automatically double that, which comes out to $11.42. For your retail price, you may want to double that again to get $22.84.
Many sellers may adjust the number to create a more balanced price, such as $22.99. When you try to sell your shirts online, you may want to check the prices of other custom shirt websites to see if you can offer services at a competitive price. If you’re working with a client who is buying in bulk, you may want to offer a discount on each shirt—selling 100 shirts at $19.99, for example, can still leave you with a nice profit.
To learn more about custom quality printing, PrimePick USA has all the information you need for your custom t-shirt business. We offer a wide range of high-quality shirts, as well as many helpful guides on how to best use heat transfer vinyls and other materials. Please contact us for more details, and a member of our team will be happy to assist you.