# Competing against "K-Mart" prices



## brenden (Dec 11, 2008)

I was out Christmas shopping with family this morning and dropped by K-Mart to pickup the usual collection of chocolate and biscuit gifts when I saw this mob of crazed folk scrambling around a tshirt rack.

Being interested in most things 'tshirt' I looked over and it was a rack of Christmas Tees. "Nice" I thought seeing loads of Christmas joy in buying festive apparel but I soon realised it wasn't the joy of a Christmas tee that was drawing the crowd - it was the price.

A super high and almost unaffordable $3 each... And that's $3 Aussie!

And just to clarify that's tee and print.

Clearly this must bring any tshirt printer to tears when they see a product (quality discussion aside) that we are trying to market and promote selling for a price that is less than our cost.

How do we compete? More so, how do you counter those seemingly more frequent comments from customers such as "$15?? I can buy a tshirt for $5 at Target...". (And $15 is cheap I think!!!)

Most customers wouldn't distinguish the difference between a tee you provide and a tee they can buy at K-Mart or Target so I thought it would be good share some ideas and thoughts on how you maintain the value in your product and, more importantly, communicate that value to your customers.


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## tpitman (Jul 30, 2007)

If someone wants me to print on a shirt they bought, I'll do it, but I tell them I won't replace any misprints, and I offer no guarantee whatsoever as to how the print will hold up, since I wasn't involved in the selection of the shirt. Most will find out that it's cheaper to let you buy the shirt, even with your markup. Most of the cheap shirts out in the discount stores are even thinner than the crap the mills are foisting off on us.


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## binki (Jul 16, 2006)

Don't compete with Kmart/Target/Walmart or any other cheapo store. We are a full service custom shop. Kmart isn't. No competition.


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## GHEENEE1 (Jan 8, 2007)

I work with the customer to give them exactly what they want, the big stores don't. Some value that, some don't. That leaves a lot of biz for us. Mike


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## jean518 (Sep 23, 2009)

You cannot compete. Even Dollar General gets in on the act around here. They sell crap shirts for 5 to 7 for local sports teams and people will buy them all day long. WM does the same thing. When that shirt falls apart after a couple/three washes they will just go by another one. Spent the same money but that is the mindset.


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## IYFGraphics (Sep 28, 2009)

I agree with everyone we don't compete with them, we are printers and the product we provide can not be bought anywhere else since it's all original artwork, if someone wants a $3 Christmas shirt then the big retailers are the place for them to go, but if they want custom Christmas shirts that will stand out from everyone else (wearing the $3 Walmart shirts) all of us here can create them.

There's a vast difference between shirts produced by the millions, and a limited production custom made tee shirt which commands a higher price because of custom artwork, high quality print, high quality garment, very low volume...ie uniqueness. 

JMHO


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## brice (Mar 10, 2010)

They are selling them a few days before Christmas, probably near cost to just get rid of them. Don't waste your time worrying about it.


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## brenden (Dec 11, 2008)

Thanks all for the comments. For the record I'm not worried about it  I was interested to read other peoples take on it.

Sadly some do offer custom printed, one off tshirt for $10. This drives down pricing and this is where the industry can offer some guidance.

Vista print is quite aggressive in advertising in Australia at the moment and frequently have their $7.99 custom printed tee. It's now listed for $8.80.

I guess the key is not to sell the product but to *sell the service*, and the comments are all spot on - it's the service of supplying a custom print.


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## proworlded (Oct 3, 2006)

> I guess the key is not to sell the product but to *sell the service*, and the comments are all spot on - it's the service of supplying a custom print.


There's an old slogan in sales - 'Sell the sizzle, not the steak'. It really works.


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## Rodney (Nov 3, 2004)

I've also wondered the same thing when walking through Target or Wal-Mart here in the US. You can get the same "style" of designs that are popular these days "all over prints" "tattoo style prints" "rhinestone embellished designs", etc for $5-$10

However, if you look online or even in the mall, you'll see other similar t-shirts selling for $25-$35+

How does a person with an idea/brand, like say Johnny Cupcakes, sell their t-shirtsfor $30+



> I guess the key is not to sell the product but to sell the service, and the comments are all spot on - it's the service of supplying a custom print.


This topic came up many times in the CafePress forums. "How can we sell our designs that have a base price of $15 and make any profit when Target sells printed t-shirts for $8"

The answer is the similar to what has been said above. 

1. You can't compete on price with the likes of KMart, Wal-Mart, Target, etc. Don't even try. 

2. Those aren't your customers or your demographic. The person buying the $8 t-shirt at Target isn't the same customer that will pay $20+ for a cool t-shirt design they see online.

3. You have to sell the uniqueness of YOUR designs. You can buy *a* t-shirt design at KMart, but noone can buy *your original* t-shirt designs at Kmart.

3. Don't just create designs, create a BRAND.


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## biotwist (Mar 10, 2008)

the people who are spending 3 bucks on a t shirt most likley not going to spend 15 or 20 in the first place and they certainly were not going to shop online for it


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## irish (Dec 13, 2008)

I have only recently gotten into the printed side of things as I started as an embroiderer. Believe me the problem is the same. Especially when Walmart got into the Embroidme franchise.

I agree with what everyone here says. You need to sell the service, the sizzle, the originality of your products. I no longer will print or embroider hats, t-shirts or sweatshirts that customers bring to me. Either they buy from me or go elsewhere. I got real sick of trying to make cr*p looks decent and of course the customer complains when it doesn't. I still do jackets if they are clean and other high dollar items because I can't carry a lot of that stuff. Again, the customer signs a release because I won't replace unless it is really my mistake. If the embroidery machine eats their jacket - too bad. That is the risk they take. (Yeah, I have gotten a little hard a$$ed in my old age  )

Down here where I live in southern Iowa, people don't want to pay much for anything but expect high quality for it. I did the shirts and hats for a music reunion one year and really didn't make much on them. The next year they wanted the same thing for less even though my costs had gone up and I refused. I was told that so&so can screen print them for a lot less - well go to so&so. I won't work for nothing. So&so doesn't have a business, they are just a local crafter that has some type of small one color screen printing thing. The local school bought from me one year and loved the design and the quality compared to what they had gotten in the past. The next year I was told that they had to "share the wealth" and go to an embroidery company in the next town that does really bad work. They have also never been back. I cannot compete with that attitude. (I call it the Walmart attitude - if you get my drift).

That is why we generally do very large horse shows all over the country. People that go to those shows expect great designs and will pay for them. I also have an online store that I am trying to promote and get it going better.

I guess what I am saying is you also have to know your market. I know that I will most likely never sell diddly locally (haven't in 8 years), so I have created a different market for myself. Yes it means I have to travel to my customers but I also have repeat customers and they do call me for special things that they want.

Sorry for the long story  I do love seeing what others have done with their businesses.


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## biotwist (Mar 10, 2008)

another point is that if johnny cupcakes wanted his shirts sold for 3 bucks at wall-mart he could. he chooses not to


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## brenden (Dec 11, 2008)

Great tips!

Anyone getting into the industry should read this.

Quick summary:

1. You won't compete, don't try.
2. Know your market (so true irish!).
3. $3 buck "t-shirters" are not your customers.
4. Sell the sizzle, not the steak.
5. It's OK to say no. Let the 'other guy' lose money. Chances are here won't be in business next year anyway.
6. Stick to your price. Johnny Cupcakes does.

Cheers all!


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## dmfelder (Oct 25, 2008)

I think GEENEE said it best. While it's definitely less expensive to buy a shirt at Target, there are only so many low-cost retailers (Target, Kohls, Walmart, Kmart, Meijer, ?) which by definition limits the amount of products they can offer. Obviously, they cannot cater to everyone. When you engage in print-on-demand shirt fulfillment, you ultimately maximize the amount of product permutations you can offer (designs, styles, colors, styles, etc.).

Let's face it...we've all been there...how embarrassing is it when you're standing next to someone wearing the EXACT same shirt? LOL


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## royster13 (Aug 14, 2007)

When I went to Disneyland there were all kinds of places selling shirtsd 3 for 10.00......But there were also lots of places selling licenced designs for 15.00+. So the market has a broad expanse to it. You just need to find your place and make designs that group will buy....


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## Richard2342 (Dec 3, 2010)

I'm new to the DTG biz (just bought an Anajet and waiting for delivery!) but I am also a promotional products distributor. This is how I view the price question. My clients can always buy cheaper on line so why come back to me? Because I give them the kind of service they can't get from an on line store. On the average 3 out of 5 customers who go the cheap route come back to me because they didn't get what they wanted. It's true that you get what you pay for.

I don't compromise on my prices too often. We have to make a living also. And I find that if your customers will nickel and dime you on one sale, they will always do it. I don't take too much time to make a couple of pennies on a sale. There's too much business out there to fret about that.


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## FunnyPharm (Dec 15, 2010)

I'm a small farmer who's knees are going out...i'm currently trying to get into softgoods so i don't have to do quite as much manual labor.
My situation is analogous; I raise all natural, free-range kosher turkeys which cost far more than commercial store-bought. Despite the higher price I continue to have more die-hard repeat customers who value the quality and flavor than i can even deal with. Sure i could cut corners and sell more for less, but what's the point?
This is kind of random, but it reinforces all the good points you guys have made.


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## indeed (Dec 19, 2010)

There are some great points that were made. Never sell yourself short and look to compete with retailers. Your job is to create not compete. Customers know what they want and if you give them something they have never seen before than they will want what you have to give. Don't let a giant retailer fear loss you into paying more for your materials and then selling them for a super low price. This is not the way to create business, that is competition and is the game they play to make you lose your money.


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## Elegant Stitch (Nov 7, 2010)

Hi:

It's cheap price. But, you want to know the price that we are paying?

[media]http://www.youtube.com/watch?v=ZHTWRYXy2gE[/media]


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## ldelzer (May 3, 2010)

I agree with everyone else's posts.

I also think it's about giving the customer something that they cannot get anywhere else (i.e. Walmart). For example, "You like turquoise better than regular blue. Got it- we can make it that way." Some customers get a real kick out of having a hand in the design/outcome of their shirt. It's creating a sense of ownership and pride on their part.

Know everything about the field. This is your area of expertise. The Kmart kids aren't going to know anything about any product. But, YOU, and your employees can be well-versed.

Creating products here helps your local economy by creating jobs. The people making your shirts are working, paying taxes, and have children in your local schools. This helps everyone.

By creating things on demand and locally, you are part of a customer's life. Many times (at least with my business), they come to you for special events. Perhaps it's a birthday shirt, a reunion, big brother/big sister shirt...whatever. Those are powerful emotions (on the part of the shopper). Figure out how to tap into those emotions and that can only help your business.Trigger the "love".


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## lben (Jun 3, 2008)

Before Christmas my daughter (who thinks all I make is tacky stuff) said she was going to the mall to buy a "baby's first Christmas" ornament from the Hallmark store. I told her, "Why pay that much money for the same thing that everyone else is going to have, when I could make you a plate that you can proudly display, that absolutely no one else on the entire planet will own?" Her new husband actually ordered 2 of them. One for them and one for his parents in Italy!

That uniqueness does sell. Now I'm trying to find customers for my shirts that will also appreciate having something that not everyone else has.


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## Richard2342 (Dec 3, 2010)

Loretta,
That's a great item you created. And one that will be displayed proudly year after year. You are "right on" about creating something unique. People will pay for unique.


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## sjidohair (Apr 9, 2008)

lben said:


> Before Christmas my daughter (who thinks all I make is tacky stuff) said she was going to the mall to buy a "baby's first Christmas" ornament from the Hallmark store. I told her, "Why pay that much money for the same thing that everyone else is going to have, when I could make you a plate that you can proudly display, that absolutely no one else on the entire planet will own?" Her new husband actually ordered 2 of them. One for them and one for his parents in Italy!
> 
> That uniqueness does sell. Now I'm trying to find customers for my shirts that will also appreciate having something that not everyone else has.


Beautiful Loretta

Sandy jo
MMM


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## Sport T (Nov 10, 2010)

That is a beautiful plate. Maybe you have found a new product for a niche market. A lot of people would buy those.


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## lben (Jun 3, 2008)

Sport T said:


> That is a beautiful plate. Maybe you have found a new product for a niche market. A lot of people would buy those.


Thank you, I'm sure they would sell. But unfortunately I had to shut down the sublimation part of my business after my press and my printer stopped working. I have to get a new printer and more sub ink but I don't have the funds available right now to do it. The plate did come out really nice though. A friend of mine that I sort of taught sublimation to printed the transfers for me.


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## gruntstyle (Aug 11, 2009)

Don't try to compete with price on a big box store, because you juts can't win. But you can beat them in several different areas. This focus has helped us sell nearly 12,000 pieces this first year in our business. Compete with your customer service and quality. I guarantee our quality, called our 'beer guarantee', this catchy names helps people ask about what it is. But it definitely sets us apart from bigger manufacturers and stores.


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## tplus9 (Jan 7, 2011)

ive never seen a tshirt at WM or KM that I would wear even if they GAVE me one....


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## WestZ (Jan 5, 2011)

I believe that when one goes into the apparel business, they know that there are a lot of people who would look away at the sight of $18 t-shirts. That is fine, as that it is their money. But with unique shirts, the buyer will never find one exactly like it at Target, Wal-Mart, K-Mart or any other big box stores. In the apparel business, you're selling your brand, not the shirt, as I'm sure many of you have already said. Others buy shirts at that price because it is all they can afford, but I'm sure if they had the money to buy at least 1 unique design from a good artist, they would easily shell out that type of money. And besides, people buy clothing fully knowing that they will / will not make an impact with the clothes they wear. It's all about what the brand stands for and what it can provide to the consumer. Once again, this is just what I think about the Apparel industry as a whole.


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## jcameron (Nov 21, 2009)

I am in the promo products biz and we specialize in screen printing. It's a pretty fierce battlefield, when it comes to pricing. I notice companies such as Vista Print, Discount Mugs and the like and it gets pretty frustrating. Vista print has photo shirts for $4.95!!! Of course shipping is prob. another $6 or $7. I scratch my head and just wonder how they can keep the doors open with all the overhead and employees. I price these companies out on various bids and they are always so cheap. I guess they must have the volume to make pennies per order vs. us? Don't even get me started on the companies that claim to only sell to distributors and then turn around and sell to the end user. GRRRR.


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## fastopel (Jan 9, 2011)

Irish, you're the man. I run my business the same way, same attitude. If you don't like it go somewhere else. I also travel to special event where I know people will pay my price. I'm just starting to add t-shirts to my product line. Will see how it goes. I know at a monster truck jam my friend at NitroFish appearl sold 22,000 t-shirts for an average price of 18.00 each in one weekend. I know Kenny don't put up with any B/S either. Darrell




irish said:


> I have only recently gotten into the printed side of things as I started as an embroiderer. Believe me the problem is the same. Especially when Walmart got into the Embroidme franchise.
> 
> I agree with what everyone here says. You need to sell the service, the sizzle, the originality of your products. I no longer will print or embroider hats, t-shirts or sweatshirts that customers bring to me. Either they buy from me or go elsewhere. I got real sick of trying to make cr*p looks decent and of course the customer complains when it doesn't. I still do jackets if they are clean and other high dollar items because I can't carry a lot of that stuff. Again, the customer signs a release because I won't replace unless it is really my mistake. If the embroidery machine eats their jacket - too bad. That is the risk they take. (Yeah, I have gotten a little hard a$$ed in my old age  )
> 
> ...


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## TBaggdesigns (Jan 14, 2011)

I'm new here but like a few others said, "don't compete with those guys" It'll probably be best for you to stick to what it is you do and try to create your own lane to where others doing the same thing as you wont even be an issue regardless of the price.


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