Pricing

How to benchmark your own pricing (without guessing)

Benchmark against your own history rather than industry averages, because blank costs, labour rates and market rates vary too much between regions for an average to be actionable. Group your last hundred orders by method and quantity band, calculate realised margin for each group, and compare against your target. The gaps show you exactly which work is underpriced.

Published industry averages are close to useless for a single shop. Here is how to build a benchmark from your own jobs and read it honestly.

"Am I charging enough?" is the most common question a print shop owner asks, and the published answers are the least useful data available. A single average blends a contract printer in a low-wage market with a retail shop in an expensive city. Your own history is a far better benchmark, and you already own it.

Build the grid

Take your last hundred completed orders. For each one, record: decoration method, quantity band, revenue, blank cost, decoration cost, direct labour, and any reprint cost. Then group.

Method Quantity band Orders Avg realised margin Target
Screen print 1 to 23
Screen print 24 to 99
Screen print 100+
DTG 1 to 11
DTG 12+
Embroidery 1 to 23
Embroidery 24+
DTF Any

Realised margin, not quoted margin. The difference between the two is where the money goes: artwork time you absorbed, a reprint you swallowed, a rush you did not charge for, freight you underestimated.

Read it in this order

1. Which cells are below target? Usually the small-quantity screen print band, because setup was under-charged. See setting a minimum.

2. Where is quoted margin furthest from realised? That gap is a process problem, not a pricing one. Chase the cause before you change any prices.

3. Which customers appear repeatedly in the weak cells? Often one large account has been quietly negotiated below viability over several years, one small concession at a time.

4. Which method is strongest? That is where your sales effort should point, and it is often not the one you have been promoting.

Then check the market, narrowly

Once you know your own numbers, a little outside comparison is useful, but keep it narrow: shops in your own region, on the same garment tier, in the same customer segment. Public price lists, online store pricing, and campaign store pages are all visible. That tells you whether the price your maths requires is one your market will pay.

If your required price is far above local market rates, the problem is cost, not price: garment sourcing, setup time, or utilisation.

Raise prices without an announcement

New quotes at the new price. Existing accounts at their next natural reorder, with notice and a reason if they ask. Percentage rises across the board announced in a letter invite negotiation from every customer at once, including the profitable ones who were not going to complain.

Re-run it quarterly

Blank costs move, wages move, your utilisation moves. A benchmark is a habit rather than an exercise. Put it next to your weekly KPI review as a quarterly job.

Printer's Friend reports realised margin per order, per line and per customer from the jobs you have already run, so this grid is a report rather than an evening of spreadsheet work. The pricing formulas behind each method are in screen print, DTG, embroidery and DTF.

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Get the pricing pack

One formula per decoration method, a worked example, and the seven numbers to watch. Free PDF.

  • One formula per decoration method
  • 100 black tees, priced line by line
  • The seven numbers to watch weekly

Questions

Why not just use published industry average prices?
Because they blend regions, labour costs, garment tiers and business models. An average that includes contract printers in one country and retail shops in another cannot tell you whether your 50-piece polo job is priced right.
How many orders do I need for a useful benchmark?
Around a hundred completed orders, or three months, whichever is more. Fewer than that and one unusual job distorts every group.
What if I find a whole category is unprofitable?
Fix the price rather than the volume, and raise it on new quotes rather than announcing a change. If it will not carry a viable price, stop offering it or move it to a lower-setup method.

Run the shop, not the chaos.

Printer's Friend turns every job in this article into a tracked order: quote, artwork approval, production stage, invoice.

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Read next

Print shop software buyer's guide → Spreadsheets vs print shop software: the real cost of staying manual → Switching print shop software without losing order history →