HOW TO PRICE CUSTOM APPAREL FOR RESALE AT YOUR SMALL BUSINESS OR BOUTIQUE

Introduction

Reselling custom apparel can be a lucrative addition to your small business or boutique, but pricing your products correctly is crucial for success. Understanding how to price custom apparel ensures you cover costs, attract customers, and make a profit. This guide will walk you through the key factors to consider when pricing custom apparel, from costs and market research to pricing strategies and profit margins.

Know Your Costs

Before setting prices, you need to understand the total cost of your custom apparel. This includes:

• Product Cost: The base cost of blank garments such as soft t-shirts, custom hoodies, or custom hats.
• Decoration Cost: Expenses associated with customization, like screen printing, embroidery, or DTG (direct-to-garment printing).
• Shipping and Handling: Fees for delivery to your business or customers.
• Overhead: Any additional expenses such as storage, marketing, and labor.

Underground Printing can provide detailed pricing for bulk orders, helping you get accurate base and decoration costs for bulk orders and faster turnaround times.

Understand Your Market and Customers

Knowing your customer base and what they’re willing to pay helps position your products effectively.

• Research local competitors and boutiques to see their pricing.
• Consider your target customers’ purchasing power and preferences.
• Decide if your apparel will be a premium or budget-friendly offering.

For example, offering sustainable apparel or premium brands like custom top brands apparel can justify higher prices.

Choose a Pricing Method

There are several common pricing strategies for custom apparel resale:

• Cost-Plus Pricing: Add a set markup percentage to your total cost. This ensures every sale covers costs plus profit.
• Keystone Pricing: Double the wholesale cost. This is simple but might not suit all markets.
• Competitive Pricing: Price similarly to your direct competitors.
• Value-Based Pricing: Price based on the perceived value by customers, often used for exclusive or highly customized items.

It can be helpful to mix these methods. For example, ensure your cost-plus price doesn’t exceed market expectations.

Consider Quantity Discounts and Bulk Pricing

Underground Printing offers bulk pricing which can significantly lower your per-unit cost when ordering larger quantities. This allows you to:

• Increase your profit margins by paying less per unit.
• Offer discounts to customers on larger orders.

Keep in mind storage capacity and demand forecasting when ordering in bulk to avoid excess inventory.

Account for Time and Quality

Faster turnaround can come at an extra cost, especially if you need a 2-day rush to meet demand. Higher-quality garments or premium techniques like detailed embroidery may also raise the cost.

Use Tiered Pricing for Different Products

Different apparel types and decoration methods warrant different pricing tiers:

• Basic short sleeve t-shirts with simple prints can be lower priced.
• Customized custom sweatshirts or hoodies with embroidery or multiple colors can carry higher prices.
• Specialty items like custom jackets or custom hats may have their own pricing models.

Test and Adjust Your Pricing

Pricing isn’t static. Use the following to refine your pricing over time:

• Monitor sales volume and profitability.
• Seek customer feedback on pricing perception.
• Adjust prices in response to cost changes or market shifts.

Keep Legal and Tax Considerations in Mind

Ensure your pricing complies with local sales tax requirements and business regulations. Consult an accountant or tax advisor if necessary.

FAQ

How much markup should I add to my custom apparel?

A common markup ranges from 50% to 100%, but it depends on your market and costs. Start with cost-plus pricing to ensure coverage, then adjust based on competition and demand.

Should I offer discounts for bulk purchases?

Yes, offering volume discounts encourages larger orders and helps move inventory faster. Using bulk pricing options from Underground Printing can improve your margins.

How can I price unique or limited-edition apparel?

Use value-based pricing that considers exclusivity and customer willingness to pay. Highlight quality and unique features to justify higher prices.

Where can I find quality blank apparel for customization?

Many options are available through custom apparel suppliers. For premium and varied apparel like soft tees or custom polos, Underground Printing offers a wide selection.

Start Pricing Your Custom Apparel with Confidence

Pricing custom apparel for resale involves balancing your costs, market expectations, and profit goals. Use detailed cost calculations, understand your customers, consider bulk discounts, and adjust as you grow. If you’re ready to explore custom apparel options or need help with pricing, contact us at Underground Printing to get a personalized quote and expert advice.