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cost based on quanity advise needed



 
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Old 2 Weeks Ago Nov 1, 2009 12:01:37 PM -   #1 (permalink)
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Default cost based on quanity advise needed

i have completed my designs and am ready to move on. I have confidence that my designs are desireable but i am faced with having to order 200 minimun of each in order to own them for about 6 dollars each. including shipping etc how much should i charge a store wholesale? they will not sell them for more than 20 dollars. thanks for your advise bill
 
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Old 2 Weeks Ago Nov 1, 2009 1:32:51 PM -   #2 (permalink)
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Default Re: cost based on quanity advise needed

Quote:
Originally Posted by marlin93
i have completed my designs and am ready to move on. I have confidence that my designs are desireable but i am faced with having to order 200 minimun of each in order to own them for about 6 dollars each. including shipping etc how much should i charge a store wholesale? they will not sell them for more than 20 dollars. thanks for your advise bill
If you sell them for $18 each you are gettng a 300% times your cost. That is great for any retail store. You would have to sell 67 shirts to recover your cost of your shirts less overhead and and other costs in your sales. You need to figure out your fixed costs, variable costs, and do a real analysis to decide your ideal selling price point.
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Old 2 Weeks Ago Nov 1, 2009 1:34:18 PM -   #3 (permalink)
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Default Re: cost based on quanity advise needed

Hey there...

Welcome to the forum & good luck to you!
 
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Old 2 Weeks Ago Nov 1, 2009 2:07:26 PM -   #4 (permalink)
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Default Re: cost based on quanity advise needed

tnx studog79 retail is not a problem. when i make a web site i can get 20 dollars easy. my wholesale to retail stores is my problem. realisticly the shirts cost about 7.50 each . stores dont want to pay more then 10 dollars for a shirt know matter what it is. i'm sure alot of people have this problem---- what is the answer? Send them to china? thanks again bill
 
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Old 2 Weeks Ago Nov 1, 2009 2:54:55 PM -   #5 (permalink)
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Default Re: cost based on quanity advise needed

How many color are your designs? How many locations? Oversized? Discharged? These are all things that will affect your costs. Ehat is your minimun quantity when selling wholesale? You should have a tiered prices scale of some sort. The more they buy yhe less they cost. Retail stores have lots of overhead. Is makeing $2.50 a OK? It depends on how many you sell. If I sell 2000 shirts a week at $2.00 per shirt with not much overhead most individuals would take that. The real issue is you may be able to save a little on the cost but create more money at selling wholesale is to sell more, lots more.

As for sending offshores you need more time for deliverability. We actual print for customers in Europe now do to the quality issues we were able to solve.
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Old 2 Weeks Ago Nov 1, 2009 3:22:32 PM -   #6 (permalink)
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Default Re: cost based on quanity advise needed

i have them printed mostly 5 color silk screen on colored t shirts. i need to buy at least 200 minimum to make it worth while. they are printed on the chest only for now. i buy through a tiered price that is why i need to buy 200 minimum. this allows me to pay about 6 dollars for most shirts which includes shipping. i add about 1.50 per shirt for shipping to customer. so 7.50 is my true cost. this means i have to buy a ton of shirts and hope to sell them. thanks again bill
 
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Old 2 Weeks Ago Nov 1, 2009 6:53:51 PM -   #7 (permalink)
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Default Re: cost based on quanity advise needed

If you are sending to wholesale customers you need to have a minimum. I know if we ship a case of shirts, UPS, its around .50 per shirt. Most wholesalers we print for are ordering 10 cases and up thus the price is cheaper. The other thing is the need for 5 colors for a design. Look at reducing that in the future. The secret is to build up your sales and cash so that you can afford to buy more that 200 at a time thus reducing your cost per item. Also you didn't say if you are purchasing the shirts from a distributor thus if not you can save some money. We work with new companies differently sometimes, depending on the situation. We give a lower price but want a commitment that when and if they become successful that they will continue to use us as we are part of the reason the shirt company is a success. It is like we are investing in the company by less that normal prices and our payment would be in the future if and when the are successful.
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Old 2 Weeks Ago Nov 1, 2009 7:58:51 PM -   #8 (permalink)
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Default Re: cost based on quanity advise needed

Quote:
Originally Posted by marlin93
i have completed my designs and am ready to move on. I have confidence that my designs are desireable but i am faced with having to order 200 minimun of each in order to own them for about 6 dollars each. including shipping etc how much should i charge a store wholesale? they will not sell them for more than 20 dollars. thanks for your advise bill
If you believe the retail value of your shirts is $20, then you should look to wholesale at $8-10. In a perfect world, you would get your costs down to $4-5 per shirt. Since you are starting out and doing low volume, that will probably be tough to do, so your currently stuck at your $7.50 cost.

One thing you could do is continue with your current business model. Your profit margin will not be as good, but as your business grows, volume will go up and costs will come down, eventually getting you to the margins you want to be at. You just have to be very careful and understand you are operating at low margins. If you can minimize any extra costs and be patient and keep re-investing money into the business, you can make it work.

Another thing you can consider is establishing a production minimum. If it costs you $7.50 per shirt for 200 shirts, how many do you need to produce to get the cost down to $4? Let's say the magic number is 1000. Let your clients know that production does not begin til you have total orders for 1000 shirts. You can offer your clients a 100 shirt minimum order, but you'll need 10 clients to place orders before you begin production. This is a good way to offer flexible minimums to your clients, but gives you a way to get your costs down by producing in higher volume at a time.
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Old 2 Weeks Ago Nov 2, 2009 5:03:25 AM -   #9 (permalink)
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Default Re: cost based on quanity advise needed

thank you so much for the advise. this is the best web site i have ever seen. thanks again bill
 
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