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Q: Pricing, Production - Looking Overseas? ( No Answer,   0 Comments )
Question  
Subject: Pricing, Production - Looking Overseas?
Category: Business and Money > Small Businesses
Asked by: swimnstyle-ga
List Price: $50.00
Posted: 11 Dec 2004 18:42 PST
Expires: 10 Jan 2005 18:42 PST
Question ID: 441453
I recently started a custom apparel company targeted at competitive
swimmers.  Certainly a small market, but for my first business
venture, I'm sticking close to home (I'm a swim coach).  We are
working to sell to specialized swimming retailers, of which there are
about 50 in the country that I am aware of.  I am having issues with
pricing and profit that I could use some help with.

I would like to spend the next 6 months building clientele who will
purchase our products on a regular basis (possibily every quarter). 
With enough regular clients that I can schedule, I will be able to
combine production projects to receive per-unit price breaks (printing
200 shirts at once costs less per shirt than printing just 100).

As of right now, my sales prices are set only a fraction above my cost
of sales to offset some fixed expenses (web hosting, artists fees,
etc.)  I was compelled to do this because the MSRP's I set are just
above a 100% markup of the product.  The retailers I have spoken with
all agreed that they need to purchase on a 50% margin, or that then
need to markup 100% on their costs.

With thoughts of better profits down the road, I set my MSRP's just
above the 100% margin so that once they are buying and reselling my
products, I can raise the price of new styles and keep my MSRP's
within reason without crossing over the 50% margin rule (or just
beyond it).

Under this scenario, my profits depend largely upon production-volume
to reduce expenses.  Because I do not want to price myself out of
business, I think it is prudent to find ways to reduce production
costs for even limited volume orders.  Increases in sales price will
come with time.  I was thinking of looking to produce in either Mexico
or possibly Asia.  Although I have a goal of selling 400 items a
month, I think 200 items a month is more reasonable as we are getting
started.

Questions: How to I find, or where should I look to find screen
printing companies might help me reduce my production costs.  No US
based screen company that I have found can offer substantial savings
over who I am currently working with.  I am not opposed to looking
overseas, but I want to maintain a sense of quality control.

I also don't want the cost of shipping or any import taxes to negate
the benefits of cheaper productions.  What guidelines can you offer?
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