How to Price Your Custom Merch for Resale: A Step-by-Step Guide

by mike ritter

So, you’ve created a killer design, picked out high-quality blanks, and partnered with a reliable printer like CHUX Print to bring your vision to life. Now comes one of the most important (and tricky) parts of the process: pricing your custom merch for resale.

Whether you're launching a streetwear brand, promoting your band, or fundraising for a cause, your pricing strategy can make or break your merch business. Price too high and you might scare off potential buyers. Price too low and you risk undercutting your profit—or worse, losing money.

In this guide, we’ll walk you through how to confidently price your custom apparel so it sells AND sustains your business.

1. Understand Your Costs

Before you can set a retail price, you need to know exactly how much your merch costs to produce. This is known as your cost of goods sold (COGS), and it includes:

  • Blank apparel cost (e.g. the cost of the t-shirt, hoodie, etc.)

  • Printing costs (screen printing, embroidery, DTG, etc.)

  • Design costs (if you hired a designer or bought graphics)

  • Packaging (poly mailers, tags, stickers)

  • Shipping & fulfillment

  • Platform fees (e.g. Etsy, Shopify, or payment processing fees)

Let’s say you’re selling a custom t-shirt:

  • Blank tee: $5.00

  • Printing: $4.00

  • Packaging: $1.00

  • Shipping: $4.00

  • Total COGS = $14.00

This is the bare minimum you need to charge just to break even. But you’re not here to break even—you’re here to make a profit.

2. Choose a Profit Margin

A common markup for custom merch is 2x to 3x your cost. This gives you a healthy profit margin while staying competitive in the market.

Using the $14 cost example:

  • At 2x markup: $14 × 2 = $28 retail price

  • At 2.5x markup: $14 × 2.5 = $35 retail price

  • At 3x markup: $14 × 3 = $42 retail price

This means you could reasonably price your shirt between $28 and $42, depending on your brand positioning and target audience.

Not sure where to start? Try this formula:

Retail Price = (COGS ÷ (1 - desired profit margin))

For a 60% profit margin:
$14 ÷ (1 - 0.60) = $35

That’s a solid price point for a quality custom tee.

3. Know Your Audience

Your pricing should reflect what your customers are willing to pay. Are you targeting high school students looking for affordable streetwear? Or fans of a niche artist who are willing to pay premium for limited edition merch?

A few things to consider:

  • Perceived value – Custom packaging, storytelling, and limited runs can increase value

  • Market demand – Are you one of many or filling a unique niche?

  • Brand image – Premium brands can charge more, but need to deliver on quality

You can also look at competitors in your space. If most similar tees are $30–$40, you’ll want to be somewhere in that range unless you’re intentionally undercutting or offering something more exclusive.

4. Consider Volume Discounts

If you're buying merch in bulk from CHUX Print, your per-unit cost will often decrease as your order quantity increases. That means you can maintain a larger profit margin or offer a more competitive price to your customers.

Example:

  • 50 shirts at $14 each = $700

  • 200 shirts at $10 each = $2,000

You could sell the 200 shirts at the same $30 price point, but now you’re making $20 profit per unit instead of $16. That adds up fast.

Pro tip: Start small to test your design, and scale up once you know it sells.

5. Factor in Promotions, Returns, and Hidden Costs

Don’t forget to plan for things like:

  • Discount codes and promotions (build these into your price)

  • Unsold inventory (some products won’t move)

  • Returns or exchanges (especially if you offer free returns)

These extras can eat into your profit if you’re pricing too tightly. A buffer in your margin gives you room to handle the unexpected.

6. Offer Tiered Pricing or Bundles

If you want to move more merch or appeal to different budgets, offer options like:

  • Bundled deals (e.g. buy 2 get 1 free, tee + sticker pack)

  • Limited edition pricing (charge more for signed, numbered, or rare items)

  • Bulk pricing (e.g. 3 shirts for $75)

This lets you capture more customers while encouraging larger orders.

7. Test and Adjust

The best pricing strategy is one that works in the real world. Once your merch is live, keep an eye on:

  • Sell-through rate (how quickly items are selling)

  • Customer feedback (do people say it’s worth the price?)

  • Profit margins (is it sustainable long-term?)

Don’t be afraid to tweak your pricing. If a product is flying off the shelves, you might be undercharging. If it’s not moving at all, a price drop or added value might help.

Final Thoughts

Pricing your custom merch isn’t just a numbers game—it’s a strategy. You’re balancing creativity, customer psychology, and business sense to find that sweet spot where your merch is both desirable and profitable.

At CHUX Print, we’re not just here to print your designs—we’re here to support your hustle. Whether you’re a first-time creator or a seasoned brand, we can help you choose the right blanks, print methods, and order sizes to set you up for success.

Need help calculating your per-unit costs or getting a quote for your next run? Reach out to us today and let’s bring your merch vision to life.

Ready to launch your merch line? Contact CHUX Print for expert support, high-quality printing, and competitive pricing that makes your resale business thrive.

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