When starting a custom apparel business, knowing how to price your garments is essential for success. In this guide, we’ll break down the key components—cost of goods, labor cost, and profit margin—using a real example of an order for 10 custom t-shirts.

Step 1: Calculate the Cost of Goods
Start by calculating the cost of the t-shirts and materials. For this example, we used District Perfect Blend Tees, costing $46.50 for 10 shirts. Next, calculate the cost of your transfers. For Super Color transfers, the total was $55.80 for 10 transfers. Add any other materials such as tags or packaging. The total cost of goods for this order is $102.30.

Step 2: Factor in Labor Costs
Your labor cost includes the time spent on the entire project, from ordering materials to pressing the designs. In this case, pressing 10 shirts took about an hour. If you’re paying $15/hour for labor, the total labor cost is $15.00.

Step 3: Add Your Profit Margin
Now, determine your desired profit margin. For a 50% profit margin, simply multiply the total production cost (cost of goods + labor) by two. In this case, $117.30 x 2 = $234.60 for the entire order, or $23.46 per shirt.

Conclusion
That’s how you calculate your pricing for custom apparel! With these easy steps, you can ensure you’re making a profit while covering all your costs. Now you’re ready to apply this to your own business!

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