# Why the difference in wholesale pricing for tranfers?



## mrwacky (Dec 12, 2009)

Hi,

We own two heat presses and buy stock transfers from a company called X-IT out of Pennsylvania. I visited their booth at a tradeshow in Las Vegas and upon placing an order, was given a set wholesale price for future orders. What I have found in research is that there are many companies such as X-IT, including one (Pro World) that frequents this site. And each compoany has a few different designs that would add value to my offerings. (we sell directly to the public at motorcycle rallies and other events). When I viewed for example the Pro World site, their listed price was three times the price that X-IT charges me!!! We're not talking rocket science here, and there is no way that the wholesale cost should be this much different. 

I don't want to bend any noses out of shape with this post, but the facts are what they are in this instance. So what gives, why the disparity in pricing. Keeping the finished cost of the decorated garment down was the reason we started decorating our own blanks. We also have a Graphtec cutter for vinyl designs and do dabble in some custom rhinestone designs for special orders.

Dwight


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## Austin300 (May 24, 2009)

Good question indeed.

I think everyone should do their homework and find the best price to make their own company grow.

ProWorlds sells many transfers that I see on other sites like Art Brands and Wildside but they offer the ability to buy just one single transfer. Most of the larger suppliers (not sure if they are actually the Original creators) want you to purchase a set amount normally starting at 12.

Thanks for bringing up this one because it wasn't even on my radar.


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## Rusty44 (Apr 28, 2008)

Good piece of information. This is exactly what forums are suppose to be about, sharing knowledge and information. Not to dog anyone out there either, facts are facts. Everyone is entitled to a profit, and I would like more profit in my pocket. Thanks for sharing.


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## TripleSevensCC (Jun 15, 2011)

The big difference is Proworld carries transfer I think from some of the companies mentioned and I'm sure Ed will respond and clarify that.

Proworld offers no minimums and can order 1 of a design instead of 12. I not sure of the numbers but let's say the other company charges $1 and Proworld charges $3. As the OP stated 3 times the amount.

I am looking to start a company offering 150 designs of which 125 will be stock transfers. In order to advertise on you website you need to have bought the transfer other wise you can get sued. Ask Ed about how that happened to a customer promoting a design he didn't buy and I believe that story is on this forum somewhere.

So back to my company I could buy $1 per design x 12 because I need to buy a dozen of each design so $12 x 125 designs = $1500 not to mention many of those 125 design may not sell and I wasted the money buying them.

In the above example let's say I pay $3 x 125 with no minimum so I spend $375 inky start up. That's $1125 I could spend on advertising or blank tees. 

For some people the lowest price works best for them but for me I looking for saving as much as possible in the start up to make my money go further. And besides what good would 1500 transfers be if I had no money for marketing. 

Just my two cents.


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## proworlded (Oct 3, 2006)

I did respond to mrwacky in an email that he sent to us. First of all, the 12 piece price that we display on our website is the same as the transfer manufacturer regular catalog pricing. We do charge more for lower quantities but I do know that our 12 piece price is not three times as much, even for a trade show special unless they are dumping slow moving inventory. As most of you are probably aware there is some aggressive pricing thrown out at trade shows to 'beat up' the competition in the next booth. mrwacky explained that he spent about $500 with X-it. They probably provided a deep discount and set him up on a lower priced plateau on future purchases, providing that the volume is maintained. I did explain that our Club Pro World discount and rebate program might be beneficial. It also offers a 30 day return program that is unique in the industry. 
Personally, and I am obviously biased, I agree with triplesevenscc. If I were a retailer I would prefer to maintain a heavier inventory on something like basic white and black t shirts that I know I will sell, rather than loading up on transfer designs that might be problematic.


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## mrwacky (Dec 12, 2009)

Yes Proworded, I did receive your e-mail explaining your situation. So let me clarify my retail operation, and you might get a better understanding of the issues I face.

To begin with, I know what design styles will sell to my clients. I spent time probing this market and as a result, don't have a question mark along this line.

I travel from event to event in the western states. With fuel costs and show promoter expenses, I have to maintain a decent profit margin. We retail our shirts from $15-$25. And because we bring to the show shirt designs that the local attendee's can't find at Wal-Mart, Target, or other discounters, the customers are willing to pay our price. 

Some here may find my profit margin high, but if you tried key-stoning your product in my market, you would be out of business in one season. It is expensive to do what I do, yet we enjoy a great living by being willing to operate at low product overhead.

We do volume, so often times, the design is ordered 24-48 pieces at a time. It would make no sense for us to buy one or two pieces of a design. X-It loves me. The posted price on your website is in fact about three times what I pay per transfer. The ones you advertise for $2+, I pay around 70 cents for. Combine the 70 cents to the cost of the garment and my pricing plan works. Add another $1.30 in transfer cost, and I would need to price the garment at $19-20 on a $15 shirt and $28-30 on our more expensive items. Tha tmy friend is a deal breaker at the retail event level.

I understand your position Proworlded, you are a distributor of other companies products and need to add on a significant mark up. That's business. And I agree you have a great selection to choose from. If you are interest in a volume client, you know how to reach me as you have my address. However I can't ruin my business plan by overpaying for transfers. It's tough enough to make a living today without increasing my base product cost.


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## royster13 (Aug 14, 2007)

Now maybe my thinking is flawed......But in my mind if you had a larger selection of designs you would make more sales.....Now some would be at a lower contribution (-1.30 each) because you are paying more for transfers....But at the end of the event, you will have more profit.....


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## treadhead (Jul 26, 2006)

I would think in most cases if you're willing to buy a certain volume of product, you will always be able to get a better price going direct to the manufacturer by cutting out the middle man. That is what ProWorld is basically...a middle man that offers a very valuable service to many people. But, I wouldn't think that they could offer the same discounts unless they were willing to take a bath doing so. But this doesn't mean they are doing anything wrong or that they are charging too much.

I work with a guy that gets Dixie Outfitter transfers for $.25 each that normally cost $2.00 from Dixie Outfitters themselves. And he's been doing this for 25 years so he's got the connections. My point....there are always deals out there that can't be beat so if you are fortunate to hook up with such a deal.....consider yourself blessed.


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## mrwacky (Dec 12, 2009)

royster13,

80% of all sales are done with 20% of your selection. The remaining items are sale-able, but not in volume. But are still worth carrying. We display on shirt forms our top sellers and we have racks with the remaining sellers. There are thousands of designs out there, so we needed to pick the best sampling for our clients and that fit our display. I suppose in theory if you had a large retail sotre and could place dozens of shirt racks, carrying hundreds of stock items might work. Inventory overhead would be my concern.


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## mrwacky (Dec 12, 2009)

treadhead,

I believe it behooves all retailers or shirt producers to search out the source manufacturer. I agree that for convenience sake, using middlemen might play a minor role. But remember, those dollars you spend paying the higher price are your profits. There is a finite price point that you can sell your finished product at. 

Also, by paying more for your finished product, you stand the chance of being low-balled by your competition who did in fact, search out the lowest supplier costs and uses this to their advantage. It's your business and you should choose which direction you find best for your business plan. I'm simply relating to issues I have and my needs. Your needs may be different. Good luck.


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## treadhead (Jul 26, 2006)

mrwacky said:


> treadhead,
> 
> I believe it behooves all retailers or shirt producers to search out the source manufacturer. I agree that for convenience sake, using middlemen might play a minor role. But remember, those dollars you spend paying the higher price are your profits. There is a finite price point that you can sell your finished product at.
> 
> Also, by paying more for your finished product, you stand the chance of being low-balled by your competition who did in fact, search out the lowest supplier costs and uses this to their advantage. It's your business and you should choose which direction you find best for your business plan. I'm simply relating to issues I have and my needs. Your needs may be different. Good luck.


Mrwacky....

I couldn't agree more! You are absolutely correct. 
There are many situations though where getting the absolute lowest price is not always the best thing to do unless....like yourself....you have your customer based figured out and nailed down as to what they want. 

However, many others are still trying to figure that out and need to offer a broader selection of designs to help do that without having to purchase a bunch of each design and tying up $$ in slow moving or dead inventory. But, once they find what sells then it would be best to move towards going direct if possible and lowering your costs.

Starting out wide and shallow allows you to help figure out what your customer base wants which then allows you to go deep and narrow where you can reduce your costs on those items you have nailed down.

I think we are on the same page.....


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## mrwacky (Dec 12, 2009)

I agree with you treadhead. I've been selling garments to the public for 26 years and have a different perspective than somebody starting out cold. I too would experiment if I was looking to do a litmus test of my market. My one piece of advice to those starting out is to focus on a demographic of the market that you are familiar with. You can't be everything to everybody, but you can specialize and serve a market segment and gain a reputation among that segment which results in repeat business.


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## treadhead (Jul 26, 2006)

mrwacky said:


> You can't be everything to everybody, but you can specialize and serve a market segment and gain a reputation among that segment which results in repeat business.


Very...very true! This I've learned the hard way myself.


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