# Price Elasticity



## MarcoWilding27 (Apr 3, 2007)

Hi everyone.

Seeing as i am relatvely new in te T-Shirt selling business i am unaware of how much price can effect sales. i currenty charge 12-15pounds perT-Shirt but am wondering whether that is a little high. Can you please tell m if it wuld be worthwhile to reduce my prices to increase sales.


Many thanks, Marcus.


----------



## Mickhael91 (Apr 3, 2007)

Hi Marco,

could you perhaps enlighten me as to why your post title is 'Price elasticity'? What does that term mean?


----------



## MarcoWilding27 (Apr 3, 2007)

It means-how much the change in a price effects the change for demand of a product.


----------



## Eyerish (Mar 20, 2007)

MarcoWilding27 said:


> Hi everyone.
> 
> Seeing as i am relatvely new in te T-Shirt selling business i am unaware of how much price can effect sales. i currenty charge 12-15pounds perT-Shirt but am wondering whether that is a little high. Can you please tell m if it wuld be worthwhile to reduce my prices to increase sales.
> 
> ...


 
I think it depends on your t-shirt line..as well as your target market. If you are printing up silly shirts or basic designs, that don't really have a brand building emphasis, then I would price my shirts on the lower end of the spectrum. If however, you are trying to develop a brand name or a fashion line....I think you need to price your garments in relation to who you think your main competitors would be. 

People are funny....If it is too cheap...they may perceive your quality as ****ty, but if you charge on the high end for the same brand/product...they might look twice and actually buy. It really all depends on your designs...if they will pay 18...they will pay 20. If they will pay 22...they will likely pay 25....if they will pay 26...they will pay 29. It is my experience that If they like your design...they will buy your shirt....regardless of a few dollar price increase. The key is your marketing and quality. If you have your own tag and it is well marketed and packaged...you can get the premium....if it has a gildan tag in it for example....I think the price premium would be harder to come by.


----------



## Twinge (Apr 26, 2005)

I think your prices are probably okay. From what I've seen, decent t-shirts go for more in the UK than they do in the states; I know of at least one shop run by someone I know doing 13 pounds/shirt (on Gildans) and doing fine at that price.


----------

