That and $22 Dollars Will Buy You a T-Shirt
I want to revisit the issue of shirt prices because I think I asked the question wrong. Or, at the very least, I did not give enough information.
What I neglected to mention was that I am thinking of offering "free" shipping with any order. So, instead of selling a $18 shirt + S&H, it will be a $22 shirt with free shipping.
I believe offering free shipping will make a difference in some people's decision to buy from me. Obviously, for some people it won't. But, based on some research I've done, people really seem to like free shipping. Some sites practically credit their whole success to offering free shipping. I think that's an exaggeration, but you get my point.
Now, in my mind, it's not really free shipping because I am passing most of the cost on to them. Though, I am picking up some of the shipping cost too. (Average cost of postage ~$5.)
As I mentioned in my previous post, these are American Apparel shirts. I don't know if that makes a difference to people, but it makes a difference to me. AA is a socially conscience shirt company, and it's worth supporting. Unfortunately, it doesn't mean that I can necessarily pass these costs on to the customer.
Another thing to consider is that if I price initially at $22, it gives me flexibility to lower prices at a later date. I can also offer sales and still make a profit. If I price initially at $18, I have less room to go down, and it's very difficult for me to raise prices if the shirts are successful.
Lastly, there is the consideration of how price influences perception. From the outside, an "expensive" shirt will appear to consumers to be of high quality, based solely on the information contained in the price. This will eventually be tested by the consumers, and they will decide for themselves if they overpaid for an item. In terms of image marketing and what I am trying to achieve with my brand, I believe it is important that the price of the shirt also denote quality. Personally, I don't think $18 does that. But, of course, I could be wrong.
Your thoughts?
posted by Tommy @ 8:42 PM
3 comments
3 Comments:
my thought is this, and this might only be my weird psychology, but i never include shipping when i think about how much i'm paying. i only think of the price. so if i see $18, i think, hey i'm paying 18, even if shipping is $4 more. because we EXPECT to pay shipping. we don't EXPECT tee-shirts to cost $22. that said, it's not like you're offering such a great deal with the $22 anyway, since it's nearly full shipping ($4 vs. $5), it's just included in the cost instead of separate. people aren't stupid. they'll see "free shipping" and they'll see "$22" and they'll say, "uh huh, he just shoved the shipping in with the cost. that's not such a great deal after all." i say, charge 18. with shipping. $22 for tee-shirts is ricockulous, no matter how high quality. that's what i think.
Eden, thank you for your comments. To let you know what I am thinking, I am split right down the middle on it. It would make my life easier if I just charged S&H because I wouldn't have to estimate the charges. While shipping averages $5, it can be as high as $7.50 or so. Charging shipping would take the guessing game out of it.
g_sama, thanks for your comments. The thought that people would see through my little rouse had crossed my mind. In fact, it’s exactly the fact that I don’t like rouses and have too much respect for my (imaginary, at this point) clients that I have decided not to charge $22 large for my shirts. That’s right, you have all just witnessed it; I have made a decision.
That said, I don’t know if all the t-shirts will be EXACTLY $18. But, they should be around that (within a dollar). It all depends on what the shirt entails. If the design is printed on the front, back and sleeves, it will cost slightly more money. If it is a woman’s shirt, it should cost slightly less. Unfortunately, those are the economics of the t-shirt business.
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