Under pricing

2573 Views 18 Replies 14 Participants Last post by out da box, Sep 10, 2008

carleyj

Discussion Starter · Sep 8, 2008

Hi all! I m pretty new to this an learning lots here!
I had a call for a quote on 400 navy blue cotton t's, ranging in size med. - 3xl. small logo on front, large on back 1 color.. I quoted $7-$8.50 per shirt.
The guy in town quoted $3.50 a shirt. He is a larger company. But my question is how can this be done? Some of the larger shirts will cost that much. I know I can not, but am very curious as to how he can do it.
Thanks

1 - 19 of 19 Posts

neato

· #2 · Sep 8, 2008

He's probably not quoting on the same quality/style shirt you did. And he's probably running them on an automatic press.

Even though his price is pretty low, you're pricing may be a bit too high to be honest. We would have been at $5.25 for those, and we're a bit high since we print with WB inks.

But only you know what you need to make to stay in business.

espeinc

· #3 · Sep 8, 2008

I'd say he is a screen printer and is selling direct - he is making just a bit on the shirt but he is making $$ on the printing.
On the other hand, you are making $$ on both
assuming at least 25% on the tee and another 25% on the printing.
Yes - your price might be a bit too high...

carleyj

Discussion Starter · #4 · Sep 8, 2008

Thanks! yea Im probably a lil high on price, but Ive never done a 400 shirts either. lol
The 3.50 a shirt totally threw me! They ask for good quality shirts. I had no idea it could be done so cheap an make any money! I got lots to learn!!!

out da box

· #5 · Sep 8, 2008

We'd have been at 5.50 s-xl, 7.00 2xl-up
3.50/pc is outrageous no matter what he's printing on. If he wants to work for free, let him, it's a "free" country.

knifemaker3

· #6 · Sep 8, 2008

I'd be at $5.05 small - xl,$7.05 2xl, 9.05 3xl. Tax included. But, that's as long as Sanmar keeps running their current sale prices. Otherwise, it would be a little higher priced.

Hope this helps!
Craig

HT67

· #7 · Sep 9, 2008

2 local places here do screen printing for 3-4$/shirt for much smaller runs (20-50) for the local Recreation Commision. Now that's pretty hard to compete with. They would net more money donating it for retail price than selling it that cheap.

TeddyRocky

· #8 · Sep 10, 2008

We would be $4.50-$5.00 each. $3.50 isn't unreasonable.

LaTonya

· #9 · Sep 10, 2008

Hi $3.50 is unreal, my price is $6.50 S-XL and $7.50 2X
LaTonya

out da box

· #10 · Sep 10, 2008

I could live with 5.00, maybe 4.50 if it was one of those squeeze deals on a really hungry day.... but 3.50 for dark 2 sided?????? Plus they have 2xl and 3xl's???? Probably gonna need a flash, and they aint gonna want seconds.

paintergirl

· #11 · Sep 10, 2008

My suggestion would be to find out if the customer is happy with the bargain shirts in a few months. If they are not holding up well, or are uncomfortable or whatever, you have a chance to pick up the next 400 shirt order. In the meantime, you can research ways to cut your costs without sacrificing quality. Your customer may never have learned "you get what you pay for".

COEDS

· #12 · Sep 10, 2008

Carley, I want you to know some customers will tell you a lower price to get you to come down on your price. When a customer tells me they can get a lower price, I tell them that is a great price. I wish them luck and tell them I hope I will be able to help them in the future. I really want to say many other thing, but hold my tongue. I explain these are the prices and they are based on my cost to produce the garments and my profit which allows me to stay in business. I never apologize for my prices and never will. I go to McDonald's and no one there tells me their sorry that a 3 cent cup and 6 cents of soda is priced at $1.49. All people in business are allowed to make a profit. I advise everyone "THAT PROFIT IS NOT A DIRTY WORD". ..... JB

Master Printz

· #13 · Sep 10, 2008

COEDS IS RIGHT! I just went through the same thing. I qouted $5.50 & the customer told me she was qouted $4.75. Like a sucker I met her at $5.00 & she accepted. I think it was a big time bluff.
Carlyj, i'm new too so I guess this happens.

flattop

· #14 · Sep 10, 2008

I just picked up a 500 shirt order orange w/black ink small front lrg back 5.50 for 2x and 5.00 for sm-xl. The cool thing is they placed an order of a 100 hoodys @ 20.00each.

kylerogers

· #15 · Sep 10, 2008

I had two batches of 100 shirts each made at a very popular silk screening place in Charleston, SC a few years back.

They had me pick the shirts, and then they ordered them and based the price of the shirts and I picked and the quantity.

They are shirts that cost about $3 each for S-XL. They charged me $4.50 for the those, and more each for the larger sizes. I also provided ready to go vector artwork.

So basically the shop was looking for $150 minus the cost of supplies. I peaked in their garage at the time and they had a massive carousel press and colossal conveyor dryer. They had one guy loading and unloading shirts and one guy printing. Shirts were flying out of the dryer like candy and at candy factory. They probably due 100 shirt orders like it's nothing.

From what I understand they are the biggest screen printer in the area, they are way cheaper than the other smaller shops around town.

To come down to $3.00 a shirt, I would have had to pick shirts that go for $1.50 each. You'd be hard pressed to get Navy Blue for $1.50. If you did they'd be crap.

Being in business myself, I can tell you that some people will just throw out unrealistic low numbers to see if you will come down and it is all a bluff, or they don't realize they are getting a much inferior product at the supposedly good price they are touting.

See less See more

carleyj

Discussion Starter · #16 · Sep 10, 2008

Thanks for all your answers!!
No they re not just saying that he priced the same to the church.
The ones with the lower prices are these done on automatic presses? an where do you get your shirts for those prices? All the 3 xl navy cost me that much to purchase.

VirgilGuitar

· #17 · Sep 10, 2008

paintergirl said:
My suggestion would be to find out if the customer is happy with the bargain shirts in a few months. If they are not holding up well, or are uncomfortable or whatever, you have a chance to pick up the next 400 shirt order. In the meantime, you can research ways to cut your costs without sacrificing quality. Your customer may never have learned "you get what you pay for".

Agreed... "The Poor Man ALWAYS pays TWICE"

VirgilGuitar

· #18 · Sep 10, 2008

Most companies will be successful on other things than just price - like turn-around time, quality and other important differentiators. Next time ask them first if they are just shopping for price, and explain to them that there are plenty of factors that are more important than price, like "What is the shirt going to look like after 20 washes?" Also explain to people that the best price is usually followed by the poorest quality tee. My favorite question has always been "What can I do for you to earn your business?"

out da box

· #19 · Sep 10, 2008

We have an auto press. We're doing a large order for my biggest contract client. We're doing them on the cheap. For a new customer or retail our price would be much higher. While the productivity on a faster machine is more, the operating costs are considerably more also.
With the Navy shirts, you're looking at 2.10/pc s-xl, 3.15/pc 2xl,3xl
At 3.50/pc you will net .35 and 1.40/pc. Let's say you make 1.00/pc for 400 pcs, that's 400 bucks.
It'll take 2hrs for the front, 2 hrs for the back. Plus screen set-up etc. Lets say 5 hrs.
80.00/hr gross profit. It ain't gonna kill you, but you may have 40.00-60.00/hr in overhead and expenses.
I don't like printing for anything less than 100.00/hr and 150.00-200.00/hr is the sweet spot.
That's my math, everybody's numbers are a bit different.

IMHO 3.50/pc will put you out of business eventually, 5.00 will allow you to prosper.

See less See more

1 - 19 of 19 Posts

This is an older thread, you may not receive a response, and could be reviving an old thread. Please consider creating a new thread.