# How much is a retailers mark up



## dicky b (Apr 23, 2009)

I am trying to figure out how much I would be able to charge a retailer for my shirts. Is there a general rule of thumb of what they pay? How do you determine what to charge them. To make things simple lets say that if I was selling them myself I would sell the shirt for $20

Thanks


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## Solmu (Aug 15, 2005)

The rule of thumb is 100% markup from cost; meaning if the shirt costs you $6 to produce you sell it for $12 and they sell it for $24. If you're retailing at $20, you'll need to wholesale at $8-10 or so.


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## ino (Jan 23, 2007)

In a perfect world that rule of thumb would be OK. However thanks to the geniuses that have created Globalization you now have 1.5billion Chinese dragons breathing down your neck undercutting any price you can offer.


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## Solmu (Aug 15, 2005)

Hence "rule of thumb" and not "golden rule" 

It still works if you're selling to independent retailers, and not the Walmarts of this world.


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## SimplyTopUK (Jan 10, 2009)

Would the same apply in the UK retailers market?

We're trying to sell to some independant stores but dont know how much to chage them for wholesale tees as on our site we sell them for £13.95.

Any dieas how much we should sell wholesale?

Thanks in advance.


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## ino (Jan 23, 2007)

SimplyTopUK said:


> Would the same apply in the UK retailers market?
> 
> We're trying to sell to some independant stores but dont know how much to chage them for wholesale tees as on our site we sell them for £13.95.
> 
> ...


 Depends on the type of deal you wish to have with your retailers.
You could have exclusive designs, COD, minimum quantities,sale or return. Each type of deal could effect your pricing.
If I were a retailer I would prefer to have exclusive designs and be able to do my own markups. Just my Opinion.


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## Solmu (Aug 15, 2005)

SimplyTopUK said:


> Would the same apply in the UK retailers market?


It still applies as the _rule of thumb_, but nothing is set in stone.

From what I know of UK retail prices (which is hardly exhaustive I'll admit), you've shot yourself in the foot by placing your retail so low. I was under the impression that t-shirts are rarely sold for under eighteen quid. You can't undercut your retailers, so you'll need to be able to offer a competitive wholesale price so they can match your prices.


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## Kimba51 (May 12, 2009)

I agree! The rule of thumb is the same in the UK. I've just started my own business selling fridge magnets with photo's I've taken of our pets in them. I'm asking for 100 per cent on what they cost me to make, they're selling at a local garden centre for 100 per cent of what I'm asking in return for them.
They're not selling as well as they should because, I think the Garden Centre is asking too much for them, or am I?


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## try change (Jun 25, 2007)

I would really like to charge 100% markup however even some of the hot brands (Blac Label) are coming out with discounted t-Shirts now. Does anyone feel only making $5.00 per shirt is a good deal in these economic conditions? Should I just hold out and still charge my 100% mrkup?


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## eccApparel (Dec 8, 2008)

Solmu said:


> The rule of thumb is 100% markup from cost; meaning if the shirt costs you $6 to produce you sell it for $12 and they sell it for $24. If you're retailing at $20, you'll need to wholesale at $8-10 or so.


This is the way most retailers do it. It's called keystone pricing. Take the price you paid and multiply it by two to get your retail pricing. I would say that most clothing is done this way. 
$7-$9 for wholesale printed t-shirts is an industry average for 100% heavyweight cotton. $10-$12 dollars for 100% ringspun cotton and even more for some brands. I'd just set a price and not worry about the price cutters.


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## jobbinchung (May 15, 2009)

Excellent , Lewis. You should have been in retailing for quite a long time.


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## Artsplace-CBR (Feb 22, 2007)

I am in New Jersey & printed t-shirts sell anywhere from $5 to $10 dollars, I don't how anybody can get $20.00 for a t-shirt, I am in South Jersey & craft shows charge about
$6 a shirt.

Art


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## BillyV (May 8, 2009)

WOW... 6 dollar a shirt... how much are youturning in profit?


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## Artsplace-CBR (Feb 22, 2007)

I no longer do t-shirts because of the competion. I used to just do the craft shows & sell for $6.00, the shirt cast about $1.50 & transfer about $2.00. At one show there was a guy near me seling them for $3.00, don't ask me
how but that was enough for me.


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## BillyV (May 8, 2009)

We have a store that opened in this next town a couple of months ago selling shirts for $3 each...
All crappy chinese shirts and sub-standard prints... yet in these times people are buying them left a right, I only hope that they don't start trying to print thier own.


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## Artsplace-CBR (Feb 22, 2007)

Yes I know, I had a retailer friend who said he could get me all the printed shirts I wanted at $1.00 each somewhere in NY city.


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## ino (Jan 23, 2007)

Artsplace-CBR said:


> Yes I know, I had a retailer friend who said he could get me all the printed shirts I wanted at $1.00 each somewhere in NY city.


 Maybe they fell off a truck? lol.


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## Artsplace-CBR (Feb 22, 2007)

He said they are considered 2nds. & they have the cut tags. Said they are always available.
Don't ask me how?


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## BillyV (May 8, 2009)

Seconds for where?


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## Artsplace-CBR (Feb 22, 2007)

Seconds was the wrong word, they say shirts with imperfections. I think with bad stitching or
some with slight misprints etc. but how anyone can sell a t-shirt for $15 or $20 dollars is beyond me. The Boscovs in our local mall has some very
good looking patriotic prints for $4.97 each with
many designs to choose from.


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## try change (Jun 25, 2007)

Here in the DC, VA & MD area our market must be completely different from the rest of th country. Most of the shirts that I compete against sell anywhere from $24 to $65 each.


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## Artsplace-CBR (Feb 22, 2007)

We once had a guy in our local mall trying to sell t-shirts for $22.00, he lasted about 3 or 4 months & they were really nice looking prints.
We even had a Walgreen's at one time selling printed t's for $4.00 each in our area.


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## BillyV (May 8, 2009)

I guess the bottom line is that we will sell them for what we can sell them for...


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## SimplyTopUK (Jan 10, 2009)

I agree with Billy =)


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## SeeBeSeen (Mar 4, 2009)

Billy, are you in Nor Cal or So Cal? Im wondering what shirts go for near the Nor Cal Brentwood, thanks


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## BillyV (May 8, 2009)

I am in NorCal.


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## Brian-R (Apr 21, 2008)

try change said:


> I would really like to charge 100% markup however even some of the hot brands (Blac Label) are coming out with discounted t-Shirts now. Does anyone feel only making $5.00 per shirt is a good deal in these economic conditions? Should I just hold out and still charge my 100% mrkup?


I would not want to be selling shirts at a $5.00 markup unless it was a volume deal. That isn't enough for a short run. When you caculate in *all* of your costs including your time, labor, equipment wear and tear, supplies, utilities, etc. etc. you really aren't making anywhere near that $5.00 number. I don't believe in giving away my work. I would rather not work.

Brian


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## brycesenz (May 20, 2009)

My advice would be to consider the entire pricing strategy, rather than focus on just the retailers markup.

I'd start by figuring out what your target audience is, who your competitors are, and what price quality shirts usually command in that market. In some cases it's $10, in some cases it might be $80.

Then, assume a 100% markup at each stage, and compare your "ideal" cost to your actual cost. If they are close and the economics work, then you're golden. If not, try to determine the wholesale prices that your competitors are charging (not a bad idea in general). Are they accepting a smaller margin? Or is it more likely that they manage their costs better than you do?

I'm not trying to say that it's all just one big game of copycat, but it's important to understand all of these aspects before you devote a lot of time and money to this business.

Hope that helped!


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## Vink (May 27, 2009)

there are alot of cheap t's out there but if you put some creativity into designs and print on nicer shirts you can get more $ for them. you need to find where that market is...but it's out there.


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## BillyV (May 8, 2009)

I agree...


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## Artsplace-CBR (Feb 22, 2007)

I really think it has to do with the area of the
country as well, I looked at shirts for Father's Day in our local mall & Boscov's has some really
nice designs on Gildan shirts at $6.99 each. I'm
in NJ, maybe in California they would sell for more.


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## eccApparel (Dec 8, 2008)

There are so many variables it's not even funny. Location, clientele, design, fabric, cut, imprint methods. You could really go on all day. You just need to find out who your customer is and price accordingly. Take in to account that people are a little tighter with their money right now too.


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## Solmu (Aug 15, 2005)

eccApparel said:


> You just need to find out who your customer is and price accordingly. Take in to account that people are a little tighter with their money right now too.


True. It's also important to remember that "tighter" doesn't necessarily mean "want to spend less" - it just means they're looking for value. Some fashion forecasters have been predicting (for a while now) a trend towards less overall consumption, but of higher quality goods. You certainly see that in some demographics. I don't know whether or not it will go mainstream.

But sometimes recession spending actually means spending _more_ on an item, but making sure you buy stuff that you expect to last. That might mean something that won't go out of fashion too readily, it might mean something of better manufacturing quality, or something else altogether.

So one recession strategy is to lower prices - another is to raise quality (and maybe even prices along with it).

The other thing to remember is that when people are depressed (say, because the recession is all that's on TV and it's depressing) they often try to cheer themselves up with some retail therapy (cf. the uptick in lipstick sales after 9/11 for example). It's not unusual to buy luxury items you can't afford, when you can _least_ afford them. Your brand could be positioned to be that impulse purchase.

As you said, you need to know your customer to know what they want.


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## BillyV (May 8, 2009)

Kohls always has some type of seasonal screenprinted shirts for $5 - $10.
Hard to compete with...


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## Alpha Statuz (Feb 20, 2009)

Never comprehend some of the price quotes I read.

I'm generally spending around (with S&H, all that) $4/shirt, then an additional $6 in screen printing per shirt.

So while I'd like for my base designs to sell for $25 in store, I'd have to sell them at $12.50 each, making only 25% profit. Anyone out there actually operating like this?


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## royster13 (Aug 14, 2007)

If you are paying that much, you need to print larger quantities to get your costs down.....Retail selling prices should be based on the market, not your costs...


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## Alpha Statuz (Feb 20, 2009)

royster13 said:


> If you are paying that much, you need to print larger quantities to get your costs down.....Retail selling prices should be based on the market, not your costs...


Agreed.  I've got to bite the bullet at this point, because my choice is between larger print runs, but then fewer shirts. Would rather promote a wider selection to garner interest and push to see it pay off.


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## Azi (Apr 20, 2011)

SimplyTopUK said:


> Would the same apply in the UK retailers market?
> 
> We're trying to sell to some independant stores but dont know how much to chage them for wholesale tees as on our site we sell them for £13.95.
> 
> ...



I have the same problem too.. on how to approach retail stores.. I'm selling my shirts for the same price as you.. coz I found out all the online shops like H.I.H and H.O.G are selling their shirts for that price..


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## Toothache (May 21, 2013)

I was told by a major buyer that your wholesale price should be your cost price x 3 , and your retail price is your wholesale price x 2.3 - not x 2. 
If your retail price ends up being ridiculously high you need to figure out how to dummy down your production, get the wholesale price lower by lowering costs.


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