# Wholesale / Retail pricing issues



## Innov8 (Jun 14, 2011)

I've been selling shirts with my designs on them on a small scale, locally for a number of years.

Due to response and demand, I'm going to take it larger and begin approaching stores.

I have a few questions / issues -

1. The shirts are in the $25.00 class. Does a retailer always expect to mark up shirts 100%? Should I expect to be able to wholesale for $12.00 per shirt. Would this apply to any level shirt, say a $20.00 shirt?

2. I'm thinking of trying to undercut the market by shooting for a retail price of $20.00, which will cut into my profits. Is this a stupid idea?

3. The shirts I use have fixed prices. When wholesaling, are price cuts at certain quantities expected by the retailer at the shirt shop level? 

Any help would be much appreciated.

Thanks.


----------



## AtkinsonConsult (May 2, 2011)

Jim:

I'd have a candid conversation with the retailers that you want to sell to about their expectations, how they order, pricing, etc. It doesn't matter what anyone here says to you....as they are the ones buying. Also, each store could be set up differently with their own rules. The larger chains will have a thick guidebook on how their supply chain works, and if you deter from that they will impose monetary penalties on you. You need to make sure you do things correctly.

Also, I'd get in the habit of documenting and writing your procedures and policies for dealing with each one...as if you are selling to multiple outlets it could get confusing as to how to prep for each one. Make sure your crew or your print vendor understands those regulations and follows them to the letter. 

Communication is the key to success. Don't be afraid to ask questions. Most people are thrilled that someone wants to get it right and wants to listen.

Good luck,

-M


----------



## ronr76 (Jun 8, 2007)

I would assume if you are going into retail stores you will have to print a heck of a lot more shirts then you were previously printing. Which mean your cost per shirt should go down due to standard quantity price breaks.
I would try to keep your pricing as is. Why would you lower the price on the shirts you say are in demand? Unless your retailer suggests you do it then don't. You are probably not in the position to dictate any terms.


----------



## Innov8 (Jun 14, 2011)

You are correct there Ron, I'm not in position to dictate terms.

But, that's why I'm wondering, in a general sense, does a retailer expect to mark up 100%.

If they are, then I know that if I'm going to try and set a retail price of $20.00, I should expect to wholesale them for no more than $10.00. And, yes, that thought is painful. But, I want to blow the other guys out of the water.

I can only get one price break, when I order a case. Sales and "special" case prices are not offered on the shirts I use (ring spun cotton).

I appreciate your feedback.


----------



## Sport T (Nov 10, 2010)

You say you have been selling your shirts for $25 with no problem. If a customer likes your shirt they will pay the $25. If they don't like it they won't pay $20. Yes, the retailer will keystone the price (double the price they pay). They have to calculate their overall overhead into the cost of the shirt which could add another $2 to $3 to their total net price. Trust me you will not blow everyone else out of the market by lowering your price.


----------



## Innov8 (Jun 14, 2011)

Thanks a lot everyone. Truly helpful.


----------

