Mastering Print-On-Demand Pricing: Strategies and Tips

Mastering Print-On-Demand Pricing: Strategies and Tips

Table of Contents

  1. Introduction
  2. Step 1: Assess Your Product Cost
    • 2.1 Design Costs
    • 2.2 Production Costs
    • 2.3 Shipping Costs
    • 2.4 Taxes
    • 2.5 Platform Fees
  3. Step 2: Add a Profit Margin
  4. Step 3: Add Up Other Costs
  5. Step 4: Review Your Prices Regularly
  6. Pricing Strategies
    • 6.1 Market or Competition-Oriented Pricing
    • 6.2 Demand or Dynamic Pricing
    • 6.3 Anchor Pricing
    • 6.4 Discount Pricing
    • 6.5 Penetration Pricing
  7. Pricing a Printful T-Shirt: Example
  8. Conclusion


Product pricing is a crucial aspect of running an online store. It not only affects your business finances but also determines your competitiveness in the market and the profitability of your products. In this article, we will guide you through the process of pricing your print-on-demand products, covering everything from assessing your product cost to implementing pricing strategies and reviewing your prices regularly. By following these steps, you can make informed decisions and ensure the success of your online store.

Step 1: Assess Your Product Cost

Before determining the optimal price for your products, it is essential to assess your product cost accurately. There are various factors involved in calculating the cost, including design costs, production costs, shipping costs, taxes, and platform fees. By taking these factors into account, you can establish a sustainable base price for your products.

2.1 Design Costs

If you outsource design services, you need to consider the cost of the designs when calculating product cost. This can be done by dividing the price you pay to the designer by the number of product items you expect to sell. Alternatively, if you create the designs yourself, it is essential to assign a realistic hourly rate for your work and include it in the product cost calculations.

2.2 Production Costs

For print-on-demand products, production costs are covered by the price you pay for each item. However, factors like size, color, and fulfillment location can affect the final product cost. It is crucial to consider these variables and choose the most accurate pricing strategy, such as pricing different sizes separately or calculating an average cost for all sizes.

2.3 Shipping Costs

While print-on-demand services handle product shipping, it is important to determine the shipping rates you will offer to your customers. You can either charge customers for shipping or provide free shipping by incorporating shipping costs into the product base price. Offering free shipping can significantly increase the likelihood of customers making a purchase.

2.4 Taxes

Depending on your business's location and your customers' location, taxes may be applicable to your product pricing. It is essential to understand the tax regulations in your target market and factor them into your product cost calculations. Consult a tax specialist to ensure compliance with tax obligations.

2.5 Platform Fees

When selling online, you will incur platform fees associated with using e-commerce platforms, marketplaces, and payment processors. These fees can either be fixed or a percentage of your sales. It is crucial to be aware of these fees and include them in your product cost calculations.

Step 2: Add a Profit Margin

After assessing your product cost, the next step is to add a profit margin to determine the retail price. The profit margin represents the amount of profit you aim to make on each sale. It is important to strike a balance between competitiveness in the market and covering your expenses and desired profit. Consider the overall market and ensure your price falls within an acceptable range for your target customers.

Step 3: Add Up Other Costs

In addition to product cost and profit margin, there are other costs involved in running an online store. These include monthly platform subscriptions, advertising budgets, and other service fees. To ensure profitability, it is crucial to calculate the minimum number of orders you need to sell in a month to break even. Regularly assess your costs and adjust them as necessary to maintain profitability.

Step 4: Review Your Prices Regularly

Pricing is not a one-time decision; it requires regular review and adjustment. There are various pricing strategies you can employ, such as market-oriented pricing, demand-based pricing, anchor pricing, discount pricing, and penetration pricing. By reviewing your prices regularly and experimenting with different strategies, you can optimize your pricing for maximum profitability and sales.

Pricing Strategies

Choosing the right pricing strategy can significantly impact your sales and profitability. Here are some common pricing strategies to consider:

6.1 Market or Competition-Oriented Pricing

This strategy involves pricing your products based on the average prices in your market. You can choose to price above the market average, offering additional value to customers, price the same as the market to attract a broader audience, or price below the market average to gain a competitive advantage.

6.2 Demand or Dynamic Pricing

Demand or dynamic pricing involves adjusting prices based on demand and seasonality. By monitoring market trends and customer preferences, you can change prices frequently to meet customer expectations and maximize sales.

6.3 Anchor Pricing

Anchor pricing involves setting an imaginary higher price for a product and then offering a lower discounted price. This strategy appeals to bargain shoppers and can boost sales.

6.4 Discount Pricing

Discount pricing involves setting a starting price higher than the market average and frequently offering sales and discounts. This strategy attracts customers looking for deals and creates bursts of sales.

6.5 Penetration Pricing

Penetration pricing involves entering the market with a lower-than-average price to attract a large customer base. As your customer base grows, you can gradually raise prices while retaining loyal customers.

Pricing a Printful T-Shirt: Example

To illustrate the pricing process, let's consider a classic Printful t-shirt sold on Shopify. We will assess the product cost, add a profit margin, account for other costs, and calculate the minimum number of orders required to break even. This example will provide a practical application of the pricing strategies discussed.


Pricing your print-on-demand products requires careful consideration and calculations. By assessing your product cost accurately, adding a suitable profit margin, taking into account additional costs, and reviewing your prices regularly, you can set competitive prices while ensuring profitability. Consider the different pricing strategies available and adapt them to your specific market and target audience. Continuous evaluation and adjustment are essential for optimizing your pricing strategy and achieving success in your online store.

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