Merch Pricing: How Much to Charge and What You'll Earn

Most local businesses should price merch at roughly 2.5 times what it costs to make, then check that against what similar shops nearby charge. For a t-shirt that costs about $12 to make †, that means around $30. For a hoodie that costs $24 †, around $55–$60. The exact number depends on your customers, your design and the product, but that rule gets you to a price that's fair to customers and worth your time.

This guide explains where merch costs come from, three ways to set a price, typical price ranges by product, and how to make sure every size and every sale earns you money.

What merch actually costs to make

The price you pay for an item has a few parts. With print on demand they're combined into a single per-item cost; with bulk ordering they're spread across the order.

• The blank. The plain shirt, mug or bag before printing. A basic cotton tee costs less than a heavyweight premium one; a ceramic mug less than an insulated tumbler. For a sense of scale, Printful lists a Bella+Canvas 3001 tee from $11.92, a Gildan 18500 hoodie from $22.63 and an 11 oz white mug from $6.07, each with one print.
• The printing. Direct-to-garment (DTG) printing, embroidery, or the method that suits the product. Printing on both front and back costs more than one side.
• Shipping. Either the customer pays it at checkout, or you include it in your prices.
• Fees. Payment processing, platform or marketplace fees, any subscriptions.
• Your time. With bulk stock you also spend time ordering, storing, packing and shipping. With print on demand that's done for you.

Sizes cost different amounts. A 3XL uses more fabric than a medium and usually costs the printer more. That matters when you set one price for all sizes, which we'll come back to.

Three ways to set a price

1. Cost-plus (start here)

Take the cost to make the item and multiply. We suggest 2.5×, and it's The Merch Counter's default: after our 20% fee you keep 40% of the price, which is worth the effort of selling.

Cost-plus gives you a sensible starting point, but it isn't the whole answer, because customers don't know or care what your shirt costs to make. They compare it with other shirts.

2. What the shelf next to you charges

Look at what similar local businesses charge for their merch: the brewery down the street, the café across town, the gym your customers also go to. That's the price range your customers have in their heads.

If cost-plus puts a hat at $38 but every hat around you sells for $30–$32, $32 is probably the right price, even though it earns you a bit less. In the other direction, if you're well below the local range, you're probably leaving money on the table.

Do the same check on The Merch Counter's suggestion. It's 2.5× the cost to make, raised if needed so the biggest size still earns something, so on an expensive blank it can come out higher than people near you will pay. You can always set it lower.

3. What it's worth to your customers

Some merch sells for more because of what it means, not what it's made of:

• A strong design. A clever, local or funny design can carry a higher price than a plain logo.
• A limited run. "Anniversary edition, available until Sunday" justifies a premium.
• Regulars and fans. People who love a place pay for the feeling of belonging to it.
• A cause. If part of the price goes to a charity or community fund, many customers will happily pay more.

Use this to justify pricing above cost-plus, never below it.

Suggested price ranges by product

These are the ranges we suggest: roughly 2.5× a typical print-on-demand cost to make, rounded to a clean price, and pulled down where 2.5× would outrun what a customer will pay for that product. Check them against what shops near you charge.

And here is today's catalog at our suggested prices, live:

How much you'll actually earn

Your earnings per item are simply:

price − cost to make − fees = what you earn

On The Merch Counter, the only fee is 20% of the sale price. It covers your storefront, checkout, payment processing, customer support and your marketplace listing. There's no subscription, so you don't need a minimum number of sales just to break even each month.

A t-shirt at $30 †:

A hoodie at $55 †:

Notice that the hoodie earns you more dollars per sale even though its margin as a percentage is similar. Higher-priced items are usually worth featuring, because each sale is worth more.

Pricing bigger sizes

Because larger sizes cost more to make, a single price for every size earns you less on a 3XL than on a medium.

Example at $30 for all sizes †:

You have two choices:

1. One price for all sizes, set high enough that the biggest size still earns something. Simple for customers.
2. A higher price for bigger sizes. Common in retail, but some customers find it off-putting.

On The Merch Counter, your dashboard shows earnings for every size, and the suggested price is set so that even the most expensive size doesn't sell at a loss. If you change the price, it warns you before any size would lose money.

Should you include shipping in your prices?

"Free shipping" converts well. Customers dislike seeing an extra charge at checkout: in Baymard Institute's research, 40% of shoppers who abandoned a checkout did so because of extra costs such as shipping, tax and fees. But shipping isn't actually free; someone pays it.

On The Merch Counter you can do either:

• Customer pays shipping, shown at checkout at cost. Your earnings stay the same.
• Free shipping: we add each item's shipping to its listed price, and checkout shows shipping as free. The 20% fee isn't charged on the shipping part.

Free shipping tends to make sense when your prices still look reasonable with shipping included, and for small items where a separate shipping charge would feel out of proportion. More detail: Should You Offer Free Shipping on Merch?

Pairs, limited runs and discounts

• Pairs ("tee + hat") are an easy way to raise the amount each customer spends. There's no bundle discount at checkout, so price each item on its own and suggest them together in posts and at the counter.
• Limited runs let you charge more and create urgency: a seasonal design, an anniversary shirt, a collaboration with a local artist.
• Discounts should be rare. Merch from a local business isn't a commodity, and frequent sales teach customers to wait for the next one.

Pricing mistakes to avoid

Pricing like a big-box store. You're not competing with a $8 multipack of plain tees. Your merch has your name on it, and that's what people are paying for.

Forgetting the fees. Price minus cost isn't profit. Account for platform and payment fees, or use a calculator that does.

Ignoring the biggest sizes. A single price that earns $12 on a medium might earn much less on a 4XL. Check every size.

Never revisiting prices. If a product sells out of the gate, you may have priced it too low. If nothing sells, the price may be the problem — or it may be that nobody knows the shop exists.

Frequently asked questions

What is a good profit margin on merch?

At a 2.5× markup with a 20% fee, you keep exactly 40% of the sale price: the item costs 40% of the price to make, the fee is 20%, and the remaining 40% is yours. Price above 2.5× and your share rises; price below it and your share falls. See Merch Profit Margins.

How much should I charge for a t-shirt with my logo?

We suggest $25–$35: about 2.5× what a basic print-on-demand tee costs to make. See How Much Should You Charge for a T-Shirt?.

Should merch be cheap so more people buy it?

Usually not. People who buy merch from a local business are buying into the place. A fair price signals quality; a very low one can make your brand look cheap.

Can I change my prices later?

On The Merch Counter, yes, at any time, from your dashboard.