Pricing strategy for custom t-shirts
How to calculate waste, supplies and operational time for real margins.
Competing solely on price is a race to the bottom that ruins shops. Setting a fair price requires understanding the math and elevating perceived value.
Calculating Cost of Goods Sold (COGS)
Base formula
Your cost isn't just the blank. Add: Blank cost + Print cost (DTF cm or ink) + Packaging + Waste percentage (assume 3-5%).
Also add Customer Acquisition Cost (CAC). If you run Meta ads, divide ad spend by shirts sold.
Operational costs and Labor
Your time has value
Many entrepreneurs don't pay themselves. Calculate time spent designing, printing, pressing, and packing. Multiply by your target hourly rate.
If you leave labor out, the business looks profitable until you try to hire an employee and realize margins are too thin.
Price Psychology and Perceived Value
Offer ladder
Instead of selling 'a shirt with a logo', sell 'an unforgettable custom gift'. Better copy and photos justify a 30% price bump.
Implement volume bundles: '1 for $20, 3 for $50'. This drives Average Order Value (AOV) up, amortizing shipping or negotiation time.
Ready to apply this strategy?
Get instant access to premium DTF designs, megapacks and editable PNG files to launch products faster.
Frequently asked questions
What resolution should files have for DTF and sublimation?
We recommend using PNG format with a transparent background at 300 DPI in actual print size (e.g., 11x14 inches for A3) to ensure maximum sharpness.
Do I need my own plotter to start?
No. You can start by buying printed DTF gang sheets from a local supplier and only invest in a good heat press. This reduces your initial risk.
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