Every time you design a T-shirt or any other item, you’ll need to add the commission you want to earn on top of the base price. At that point, you have to decide ‘how expensive’ you want the final product to be for your customers, and this can sometimes be a difficult decision.
The key is to use common sense. Setting an excessively high commission will make the final price very high and put off potential buyers; setting a commission that’s too low will mean your profits suffer – and, consequently, your motivation.
We recommend between 10 and 20 per cent of the total base price, although naturally there will be some items where you can add a higher margin without causing the cost to skyrocket. We also recommend that you test various prices to see which ones your customers respond to best.
Ultimately, there’s one thing to bear in mind: some market research has shown that, for certain products, the higher the price, the better the perception potential customers had of them – and consequently, the better the sales. The same item at a much lower price led to a drop in sales. Well, that gives you food for thought ;-)