So I have just started out on this site and in researching my plans. In a few months, I ultimately want to roll out about five of my original designs on an ecommerce site. I will outsource the printing part. According to my web designer, my brother who is amazing at this stuff, the best bet is to get a $20/month hosting service.
The biggest issue right now is what price point should I aim for? I am trying to target 18-25 year olds. I read on a blog that it's possible to go for the $30 - $35 per shirt range. Is this a ridiculous point?
When I actually do get the shirts printed, I will probably only do about 25-50 each run which will make the unit cost pretty high. So is it a good idea to hope for the high price point? If the hosting is $20/month, then I can sell one to two shirts a month to break even, which I don't mind for the first few months...
But then again, I could aim for the $15 range and try to get more sales. Any suggestions/comments?
What I've asked myself is: am I trying to sell as many shirts as possible? Or am I trying to build a buzz for a brand I want to expand on in the future?
My goal is to build a brand people are loyal to by providing high quality products using high quality materials, paying attention to details, connecting with customers and taking care of my customers. That's my justification for a higher price point. I'm aiming for around $30.
That's exactly the type of thing I was thinking about. I would love to do a shipment for a big box retailer. Does anyone have any experience in pricing their goods, especially in the beginning?
The way I see it there are two different schools of thought.
There's the I want to minimize work" option and the "I want to get as many customers as possible" option. Personally, when starting a new business I like selling at cheaper prices to attract more customers. You should do this until it becomes to much work to handle your orders and at that point you should raise prices. The big advantage to getting more customers is that you can email them and potentially encourage them to become repeat customers.
Alternatively, you can raise your prices, have less sales, but you'll be able to focus your energy on things other than processing orders.
Both options have benefits
All the best
Oliver
Last edited by Rodney; August 13th, 2009 at 03:56 PM.
Reason: removed link to website as per forum rules - feel free to add it to your forum profile and signature
Ahhh, another tip, include your shipping costs in the price and advertise free shipping. People always like this and it lowers the abandoned shopping cart ratio a lot.
the best bet is to get a $20/month hosting service.
I don't think that's necessarily the best bet. With so many hosting choices out there, you can get great hosting with everything you need for about $100 a year.
Quote:
The biggest issue right now is what price point should I aim for?
It depends on your market and the quality (and perceived quality) of your products. It also greatly depends on your COSTS.
You should really lay out all your costs for production, hosting/business expenses, etc so you can make sure you're making a profit for your business.
Some brands sell well at $35 (like johnnycupcakes) and some brand sell well at over half that price $17 (like threadless).
It depends on where you want to position yourself in the market and what your customers think of your brand. Not everyone would pay $35 for just any t-shirt. You have to do a lot to prove to them that your brand is worth that much. Heck, not everyone would pay $17 for a t-shirt, so be sure to back up your pricing with strong marketing and branding.
Personally I think the under $20 market is flooded with garbage and people are cutting each others throats for a sale. How many sites advertise $14.95 and less specials on shirts - they are everywhere. Unless you are selling shirts to big boxes it just makes no sense to me. Price points are based on quality of design and quality of the product you offer. We prefer the high end fully dye cut and sew market as there are very few players in this market and is exploding. The day of a simple black shirt with a logo stuck on it is quickly coming to an end. We sell fashion and quality not t-shirts. Trust me the margins are much higher.
Personally I think the under $20 market is flooded with garbage and people are cutting each others throats for a sale. How many sites advertise $14.95 and less specials on shirts - they are everywhere. Unless you are selling shirts to big boxes it just makes no sense to me. Price points are based on quality of design and quality of the product you offer. We prefer the high end fully dye cut and sew market as there are very few players in this market and is exploding. The day of a simple black shirt with a logo stuck on it is quickly coming to an end. We sell fashion and quality not t-shirts. Trust me the margins are much higher.
Definitely. The cheap market thrives but there is plenty of people who understand you pay for what you get and will pay for quality merchandise. I'm hoping that the attentions to detail, great designs and customer appreciation will prove that a higher mark-up is warranted. I also believe that to build a brand that is worth buying you want to come out of the gate with solid merchandise and never waver from that.
OJ, I agree your product is worth the price mark-up to 30 per tee as you have full sharp prints. The prints look great from the photos taken too and that really helps appease the customer when they can see that its a quality product on someone.
How much should I charge? 
