Pricing custom shirts is easier when you separate the garment, decoration, finishing, and selling expenses instead of guessing from a competitor’s price. A shirt that costs little at the sewing stage can become expensive once artwork setup, labels, freight, payment fees, and unsold sizes are included. Build the estimate before accepting an order or setting a retail price.
Quick answer: Add every per-shirt cost to find your true unit cost, then choose a margin that fits your market and sales channel. Compare quotes at more than one quantity, and use a physical sample to confirm that the garment and print match the price you plan to charge.
List the costs that belong in the price
Start with the blank or custom-made garment. Then add decoration, such as a chest print, back print, embroidery, or multiple placements. Some methods have a one-time setup charge that should be divided across the pieces in that run. Packaging, neck labels, hangtags, size stickers, and folding also matter if the shirts will be sold retail-ready.
Next account for the expenses that are easy to forget: sample development, artwork cleanup, inbound freight, customs or import fees where applicable, storage, payment processing, marketplace commissions, pick-and-pack, and shipping subsidies. If you sell direct to customers, include the cost of returns and exchanges in your planning. If you are quoting a company order, define whether shipping is included, separate, or billed at cost.
| Cost item | How to estimate it | Check before quoting |
|---|---|---|
| Garment | Supplier price per selected model | Composition, weight, sizes, color |
| Decoration | Print or embroidery quote per unit | Method, colors, placements, art size |
| Setup and sample | One-time fees divided by order quantity | Whether repeat orders incur setup again |
| Branding and packaging | Labels, tags, bags, folding per shirt | What is included in the supplier quote |
| Freight and handling | Shipment total divided across pieces | Delivery terms and destination charges |
| Sales costs | Payment, marketplace, fulfillment fees | Fees may vary by channel and order value |
Use a simple unit-cost formula
Use this starting formula: landed unit cost = garment + decoration + allocated setup + labels and packaging + inbound freight and handling. For a retail business, add the selling costs that apply to each sale. For a one-time team order, keep the quote clear about any art fee, sample charge, tax, and shipping that sit outside the unit price.
A practical worksheet has one row per cost and separate columns for 50, 100, and 300 pieces. Some costs change with quantity: screen setup may be spread across more shirts, and supplier pricing may improve at higher tiers. Other costs can rise, such as freight for a larger shipment. Keep estimates separate from confirmed supplier quotes so you do not treat a planning number as a guaranteed price.
Turn cost into a selling price
Markup and margin are related but not identical. If your landed unit cost is $10 and you add a 50% markup, the price is $15. The gross margin is then $5 divided by $15, or 33.3%. If you need a target gross margin, use: selling price = unit cost ÷ (1 − target margin). At a $10 cost and a 50% target margin, the formula gives a $20 price before tax and any customer shipping charge.
This is a planning formula, not a promise that customers will accept the result. Compare the price with the quality, positioning, design, and alternatives your buyers actually consider. A premium fabric, carefully tested print, and retail packaging may support a different price from a promotional event tee. Discounts should come from a planned margin calculation, not from trimming quality blindly.
Illustrative example: one small branded run
Suppose a small brand estimates a shirt at $4.00, print at $1.80, label and bag at $0.45, and inbound shipping at $0.65 per piece. Its estimated landed unit cost is $6.90 before payment or selling fees. If the brand’s payment and fulfillment costs average another $1.10, the sale-level cost becomes $8.00. These figures are hypothetical; actual prices depend on product, quantity, artwork, destination, and supplier terms.
If the brand wants a 55% gross margin on the $8.00 sale-level cost, its starting price would be $8 ÷ 0.45 = $17.78. It might choose a rounded retail price after checking the market and tax treatment. Before finalizing, it should confirm whether shipping is paid by the customer and whether discounts or returns are likely.
Compare the effect of quantity and print method
Small orders carry a larger share of setup and sampling costs per piece, while larger runs can reduce the setup burden. The cheapest method also changes with the design. A one-color repeat graphic may suit screen printing at a larger quantity; a variable-name order or detailed image may fit a different process. Ask a supplier to quote the same artwork at several quantities so the comparison is meaningful.
For planning an order, compare the selected blanks in our in-stock T-shirt collection and review custom T-shirt manufacturing options. Our blank T-shirt buying guide covers the garment checks that affect the finished cost.
Common pricing mistakes
- Using the garment price as the total cost and forgetting print, labels, setup, or freight.
- Dividing a one-time fee by the wrong quantity after the buyer changes the order.
- Confusing a 50% markup with a 50% gross margin.
- Comparing quotes that include different fabrics, print locations, or packaging.
- Offering free shipping or discounts without recalculating the margin.
- Setting the final price before testing a sample and confirming its specifications.
Real-world pricing situations
For a school or event order, quote by quantity and make the design, shirt color, sizes, delivery date, and shipping terms explicit. For an online brand, calculate price by sales channel because marketplace fees and fulfillment costs differ. For a first product drop, consider a conservative run and a sample budget; a lower launch price is useful only if it still covers the costs you can reasonably predict.
FAQs
How much should I charge for a custom shirt?
There is no universal price. Calculate landed cost, include the fees tied to your sales channel, decide on a margin, then compare the result with your intended buyer and product quality.
Should I charge for artwork setup?
If the work takes meaningful time or requires outside service, show it as a separate design or setup line, or allocate it clearly into the unit price. Tell the buyer which fees repeat on future orders.
Do bulk shirts always cost less per piece?
Often the setup cost is spread over more units, but freight, complexity, size mix, and supplier tiers matter. Request written quotes at the quantities you are actually considering.
Should I include shipping in the shirt price?
Either approach can work. Make the delivery charge clear and include the real fulfillment cost in your margin calculation.
