Pricing Strategy

Pricing Strategy for apparel decorators

Understanding and implementing a successful pricing strategy can be one of the most challenging aspects of running an apparel decoration business. Especially if you offer customised items as part of your product range. However, it doesn't have to be as overwhelming as it may feel at first. At Stahls' we are the world's #1 supplier for decoration materials, heat press equipment and education in the printing industry. Throughout this page we'll help you understand how to build a simplified pricing strategy and how to successfully implement it to your business.

When starting out, there are three things your pricing strategy needs to do.

1. It needs to be easy to understand, for both the customer and yourself behind the scenes.

2. It needs to allow for profit margins that will help your business run and grow successfully.

3. And it needs to be consistnt across your product range.

Many people when initially proposing a pricing strategy will consider the following aspects.

A: The cost of the blank product

B: The cost to decorate the product

C: The price the customer will pay

These three things are the main aspects of selling decorated apparel.

However, you need to make sure you're considering these additional aspects too.

D: Production Time

E: Overheads

F: Shipping Costs

Don't forget to pay yourself! Consider the time you're spending completing that order. From customer communications through to the physical heat printing, your time needs to be factored into the price of the product.

Don't forget to pay yourself!

Overheads are another factor that's easy to overlook, but complie over time. You don't want to be taking money out of your profits to pay things like rent on your workshop or electric bills to operate your heat press (even when working from your home). Factor these costs into your pricing model.

The final cost you may want to consider working into the price of the garments is the delivery fee. It may cost you to have garments and decorations materials sent to you before you even look at shipping costs to the customer. Work those charges into the product cost so you don't end up with multiple delivery fees taking from your profit.

Running a successful and profitable heat print business means having a true understanding of your costs. In this session of the Global Masterclass, Josh Ellsworth dives into all of the costs you need to be aware of within your business to be successful long term.

Josh has years of experience with the actual products themselves as well as with running and managing a business that's decorating a high volume of products with heat presses. All of the information in this session not only applies to small businesses but to large businesses as well.