Knowing how to price online stores selling custom-branded merchandise is essential, especially when the store caters to schools, teams, fundraisers, or corporate clients. Finding the right pricing strategy is essential to keeping margins strong and customers happy, and in the world of e-commerce, it’s not always a one-size-fits-all formula. 

That’s why we created the Inktavo Online Store Pricing Matrix. This free downloadable chart features a plug-and-play pricing framework tailored to different customer categories and store types. 

 

Three Reliable Strategies for Custom Merch

To start building a pricing structure that actually works, you’ll need to understand a few key models:

  1. Cost-Plus Pricing 
  2. Value-Based Pricing
  3. Tired Fundraising Pricing

Here’s a look at the different methods:

Cost-Plus Pricing

Formula: Cost x (1 + Markup %)
This is your bread-and-butter method: take the total cost to produce the item and apply a consistent markup.

Since Cost-Plus is so straightforward, it’s excellent for general retail pricing.

Example:
Cost to produce = $8
Markup = 40%
Retail Price = $11.20

Value-Based Pricing

Instead of focusing on your production cost, value-based pricing considers the price the customer is willing to pay for the product. 

This approach works well for products with perceived value, such as championship T-shirts for local sports teams, premium designs for a seasonal event, or anything with emotional pull and a connection to the community.

Example:
 Cost to produce = $8
 Fan demand = $20
 Retail Price = $20

Tiered Fundraising Pricing

Tiered fundraising is the typical approach for fundraising stores and other cause-based storefronts. Depending on the agreement with your customer, you’ll either calculate a flat amount per product or a percentage over cost and direct that portion to a fundraising goal.

Flat Fee Example:
Retail = $20, Fee = $5
Shop or store sponsor earns $15, Fundraiser earns $5

Want more tips on pricing online stores? Grab a free copy of the Online Store Pricing Matrix here to learn about:  

  • Percentage-based pricing for fundraisers 
  • How to adjust your margins based on customer type 
  • How to pair the best pricing model with customer type
  • Easy plug-and-play formulas for each scenario

Want help building your store strategy? Book a demo with the Inktavo team today.