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Discuss the process of getting your t-shirt line into brick and mortar stores and selling offline. Topics include industry tradeshows, events, line sheets, sales reps and other retailing tips and advice.

prices for selling to retailers?



 
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Old February 14th, 2008 Feb 14, 2008 1:49:30 PM -   #1 (permalink)
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Default prices for selling to retailers?

What, or how rather, do you charge when selling shirts to retailers? Do any of you use a formula?
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Old February 16th, 2008 Feb 16, 2008 12:06:58 AM -   #2 (permalink)
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Default Re: prices for selling to retailers?

the 2 stores ive talked to have offered me $12 a shirt. i sell them for $24 to customers.
 
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Old February 16th, 2008 Feb 16, 2008 12:30:56 AM -   #3 (permalink)
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Default Re: prices for selling to retailers?

Do a 60/40 split for me. I still lose money as I sell my t-shirts for 25-30 bucks each. But it'll come back later once I start selling higher volume!
 
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Old February 22nd, 2008 Feb 22, 2008 8:28:33 PM -   #4 (permalink)
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Default Re: prices for selling to retailers?

Quote:
Originally Posted by BaySickClothing
the 2 stores ive talked to have offered me $12 a shirt. i sell them for $24 to customers.
I had the same problem. The local mall sports shop and Boise State wanted to pay $9.00 for a double sided T-shirt. I have been selling them like gang busters for $20.00 on my own. I talked with a store owner, and he advised me that it's not a wise idea to deal with merchants to sell my products.

Here is why.

$8.00 each shirt the company I use to print my shirts (excluded $35.00 setup fee)

Sell to local sports store for $9.00 a shirt = $1.00 profit.

Merchant sells T-shirt in their store for $19-$20 = me getting screwed and them making a decent profit.
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Old February 22nd, 2008 Feb 22, 2008 8:36:28 PM -   #5 (permalink)
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Default Re: prices for selling to retailers?

Quote:
I had the same problem.
Actually, that's not really a problem. Rather, the way business is typically done. If you're going to be selling to retail stores, they will sell for twice as much as they paid for the garments.

It's possible that maybe you priced your shirts too low to begin with.
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Old February 22nd, 2008 Feb 22, 2008 8:41:06 PM -   #6 (permalink)
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Default Re: prices for selling to retailers?

Quote:
Originally Posted by Comin'OutSwingin
Actually, that's not really a problem. Rather, the way business is typically done. If you're going to be selling to retail stores, they will sell for twice as much as they paid for the garments.

It's possible that maybe you priced your shirts too low to begin with.

I offered $12 for each shirt to the mall sports store and the college book store. Both told me I was nuts to think any local store would pay $12 to a third party for a T-shirt. Both ironically offered to pay $9, take it or leave it. I opted to sell my shirts on my own website and word of mouth.
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Last edited by Bronco_Nation; February 22nd, 2008 at 08:43 PM. Reason: error
 
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Old February 22nd, 2008 Feb 22, 2008 8:48:19 PM -   #7 (permalink)
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Default Re: prices for selling to retailers?

I think Greg is right.

If you underprice your product to begin with then the price in which you can sell to retailers will be limited and based on the set retail price already.

If you are selling your shirts for $20, the wholesale would be around $9.00.

($9 x 2) + $2.00 = $20.00

Which is typically about the right formula from other wholesalers I have dealt with.
 
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Old February 22nd, 2008 Feb 22, 2008 8:50:25 PM -   #8 (permalink)
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Default Re: prices for selling to retailers?

Glad it worked out, for you Pete.

But you need to know how it works. You can retail them yourself, making the profit you want to make, or you can sell it to retailers.

If you sell it to them, they won't take it if they don't don't think they can make twice as much as they paid for it.

You refer to them as making a decent profit. But don't forget they have HUGE overhead. Rent, electricity, advertising, insurance, etc.

So when they buy a garment at $10, they need to profit $10 from that garment. Not $3, $5, or $7.

Otherwise, they can't survive.

Now, if your cost to produce your goods is too much, and you can't make enough profit by selling to them, that's not their fault.

Your costs are probably so high because you aren't producing in volume. You say it's costing you $8 just to produce 1 shirt. That's extremely high.

Before you begin to think about selling to stores, you're going to have to get that number down, or expect people (retail customers)to pay in the $30 range for your shirts.
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Old February 22nd, 2008 Feb 22, 2008 8:52:13 PM -   #9 (permalink)
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Default Re: prices for selling to retailers?

Quote:
Originally Posted by paulo
I think Greg is right.

If you underprice your product to begin with then the price in which you can sell to retailers will be limited and based on the set retail price already.

If you are selling your shirts for $20, the wholesale would be around $9.00.

($9 x 2) + $2.00 = $20.00

Which is typically about the right formula from other wholesalers I have dealt with.
I agree with you regarding the formula. I was only pointing out that if you want to make money selling T-shirts, it's best to do it on your own. I have made a decent profit selling my shirts on my own for $20. Especially when I only paid $8 per shirt
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Old February 22nd, 2008 Feb 22, 2008 8:55:05 PM -   #10 (permalink)
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Default Re: prices for selling to retailers?

I wouldn't say that it's "best". You are only going to reach so many people selling yourself.

That's why lots of people want to do a combination of selling themselves, and selling to retailers.

Of course, you have a bigger profit margin when you sell yourself. But, you only reach a certain number of people that way.

By selling to retailers, your profit margin is smaller, but you're selling more volume.

If it was "best" to sell your shirts yourself, you wouldn't see t-shirts for sale in any store.

Everybody would be selling them themselves.
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Old February 22nd, 2008 Feb 22, 2008 8:55:22 PM -   #11 (permalink)
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Default Re: prices for selling to retailers?

Quote:
Originally Posted by Comin'OutSwingin
Glad it worked out, for you Pete.

But you need to know how it works. You can retail them yourself, making the profit you want to make, or you can sell it to retailers.

If you sell it to them, they won't take it if they don't don't think they can make twice as much as they paid for it.

You refer to them as making a decent profit. But don't forget they have HUGE overhead. Rent, electricity, advertising, insurance, etc.

So when they buy a garment at $10, they need to profit $10 from that garment. Not $3, $5, or $7.

Otherwise, they can't survive.

Now, if your cost to produce your goods is too much, and you can't make enough profit by selling to them, that's not their fault.

Your costs are probably so high because you aren't producing in volume. You say it's costing you $8 just to produce 1 shirt. That's extremely high.

Before you begin to think about selling to stores, you're going to have to get that number down, or expect people (retail customers)to pay in the $30 range for your shirts.

What hurts me more then anything is I am using a local store who is a Collegiate License holder to produce my T-shirts. I completely understand your points. My two cents is really on the fact that anyone selling T-shirts on their own will make a little more.
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Old February 22nd, 2008 Feb 22, 2008 8:55:38 PM -   #12 (permalink)
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Default Re: prices for selling to retailers?

Not sure what your target market is, but a good rule of thumb for retail pricing would be to price your shirts around the same price of your competition.

So if your competition is selling for $24-$30, then you would want to sell around that same price. Not worth underpricing, because if the customer really likes the shirt, they will buy (hopefully)

Also by not underpricing, it gives you some lewey (not sure of the spelling) on the wholesale pricing.
 
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Old February 22nd, 2008 Feb 22, 2008 8:57:38 PM -   #13 (permalink)
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Default Re: prices for selling to retailers?

Quote:
Originally Posted by Bronco_Nation
My two cents is really on the fact that anyone selling T-shirts on their own will make a little more.
I think you may have missed my post above.

This is not really the case at all.

Maybe more per shirt. But not necessarily more overall.
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Old February 22nd, 2008 Feb 22, 2008 8:58:09 PM -   #14 (permalink)
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Default Re: prices for selling to retailers?

Quote:
Originally Posted by Bronco_Nation
My two cents is really on the fact that anyone selling T-shirts on their own will make a little more.
Yes you will definitely make more retailing it on your own, but if you wholesale, this may drive your cost down, by increasing the quantities you produce.

The cost of production goes down the more blanks you buy, and it goes down the more runs you make.

There are advantages and disadvantages to everything.
 
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Old February 22nd, 2008 Feb 22, 2008 8:58:34 PM -   #15 (permalink)
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Default Re: prices for selling to retailers?

Quote:
Originally Posted by paulo
Not sure what your target market is, but a good rule of thumb for retail pricing would be to price your shirts around the same price of your competition.

So if your competition is selling for $24-$30, then you would want to sell around that same price. Not worth underpricing, because if the customer really likes the shirt, they will buy (hopefully)

Also by not underpricing, it gives you some lewey (not sure of the spelling) on the wholesale pricing.
Boise State's success has made it easy for me to sell my design. My world wide Podcast and website has also done the leg work for me. I have sold T-shirts from Germany to Hawai'i. Now if Boise State football goes down the tubes? I don't want to think about it!
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