Profit Margins

[Dave271069]

hi not sure where to discuss this so put it here for now,

Tonight i was asked to prepare a general price list for a possible future customer. Now this has got me thinking, when i sell single t-shirts on my website im happy with the huge price i charge but this customer is a trade customer or BTOB as some call them, my silent/freind/mate is going to this meeting for me and asked me to put a price list together for the customer but im stuck, im not going to charge them no where near the price i charge on web site so ive sat down and worked out how much every item will cost me including the print, vat (not vat registered so put it in price) delivery. ive got my final costings but how much of a percentage should i add to A T-SHIRT - A POLO- A HOODIE- to get my final price?

[jennywren]

First you should have the min number of shirts ect that you will lower your price on say for example say 20, set a price for that, say next 50 and so forth set the price with what you are comfortable with, just make sure you make clear that when the pick say t.shirts, that they can only have one color as you get a better price of your supplier when you order. The price will always be with how many, I had to go rock bottom when I did 2000 t.shirts but I still make a reasonable amount of money

[Dave271069]

Ive put my numbers the same as ralawise sell there discounted rates, so t-shirts come in single 12's or 72's so thats how ive put down, i worked out my total cost per item then ive added 25% 50% and 100% so i know if i sell something at my lowest price to a close friend / family the least i will make is 25% does this sound about right or am i missing something...

[pisquee]

Work out the prices on a per job, not a per item amount. How many t-shirts with the same design can you print in a hour for instance, and then how much do you want to pay yourself as a wage per hour above your costs.
The other info that's useful to know is what price the client will want/need to sell the item for, and what mark-up they normally expect from a product to make it worth their while buying in.

We do a lot of B2B, it's mainly what we do, and some shops we supply are happy marking up our trade price by 1.5X, and others up to 3X, whilst most are 2-2/5X. We do have set RRPs, but some stockists ignore these.

Also, for something like a mug, there is an expectation from a shop of being able to buy them in at a set price, because that's the going rate, so we have to match that.

[NikGrey]

I'm new to this but I think it's worth adding my system, if for nothing else to be corrected.

I work out the cost price, for Mug/Shirt (Inc postage - the final cost to me) - the transfer paper etc, all of it and come to a figure.

I times that by Three and this is my lowest price, I charge that price for bulk orders but no lower... How can you add costs for electricity used.. Well, That is factored in with my system.

I went to see a seasoned pro recently but didn't want to probe him on his prices a that is his business - I get the impression 'Price' is a subject we wont discuss in detail.

[gorgall2]

Am I reading this correctly, you triple the postage element? So to send one mug first class, you're already at £9.00 before you add anything for the mug.

[ASLCreative]

Pricing of goods is the first thing any business person should understand and be able to work out.

The formula for calculating the pricing of 1 T-shirt, 100 T-shirts or 2000 T-shirts is no different. The 3 main elements are there - material cost (inc. your overheads) + time + % profit.

You should work it out using your own figures.

Remember this - "your REAL profit is made at the point of buying not at the point of selling".

[NikGrey]

Gorgal, no i mean total cost to me so I include the cost of materials plus the postage cost of them (postage to get them to me, not outgoing postage, i cant change that..lol).

Asl is correct of course, the mysterious part is the %profit.

I think you need a reassuringly adequate price.

[gorgall2]

That makes more sense, it was very late when I read it.

[purpledragon]

hi not sure where to discuss this so put it here for now,

Tonight i was asked to prepare a general price list for a possible future customer. Now this has got me thinking, when i sell single t-shirts on my website im happy with the huge price i charge but this customer is a trade customer or BTOB as some call them, my silent/freind/mate is going to this meeting for me and asked me to put a price list together for the customer but im stuck, im not going to charge them no where near the price i charge on web site so ive sat down and worked out how much every item will cost me including the print, vat (not vat registered so put it in price) delivery. ive got my final costings but how much of a percentage should i add to A T-SHIRT - A POLO- A HOODIE- to get my final price?

careful not to say vat is in the price if you are not vat reg. If you say vat in the price your customer may well then expect a vat reciept remember if you charge vat your customer can claim it back if they are vat reg but the vat man would then expect you to give him the vat part of the bill