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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.