How to Price Custom Hoodies for Profit: An Ecommerce Margin Guide

Pricing is where most new apparel brands quietly fail. They copy a competitor’s price, forget half their costs, and end up working for free after fees, returns and ads. Pricing for profit is not guesswork — it is a simple framework. Here it is, built for UK and USA hoodie brands.

Step 1 — calculate your true landed cost

Landed cost is everything it takes to get one finished, branded hoodie into your hands — not just the factory invoice. Add it all up:

• Blank garment cost (driven by fabric and GSM).
• Decoration (DTF, screen print or embroidery).
• Branding extras (woven label, tag, packaging).
• Inbound shipping and any duties or import taxes.
• Per-unit share of sample and setup costs.

Step 2 — apply a healthy markup

A sustainable apparel brand typically prices at 2.5x–4x landed cost. That multiple is not greed — it is what is left after the costs most founders forget. As a worked example: if a branded hoodie lands at £14 / $18, a retail price of £45–£55 / $55–$65 keeps the business healthy. Pricing at £30 might feel competitive, but watch what it leaves once the deductions hit.

Step 3 — subtract the costs that eat margin

Your gross margin is not your profit. Before you keep a penny, the following come out of every sale:

• Payment & platform fees — roughly 2–3% (cards) plus any marketplace commission.
• Returns & exchanges — budget a few percent of revenue; apparel returns are real.
• Marketing & ads — often the largest variable cost; many brands target ad spend under 25–30% of revenue.
• Discounts & promotions — every code is margin you are giving away.
• Fulfilment & outbound shipping — especially if you offer free delivery.

Step 4 — price for the customer you want

Price is also positioning. A heavyweight 420 GSM hoodie at £55 signals premium quality; the same design at £25 signals budget — and attracts a more price-sensitive, less loyal buyer. Use fabric weight, branding and presentation to justify the price, rather than racing competitors to the bottom.

Step 5 — protect margin with volume

As you grow, your strongest margin lever is buying better. Moving from entry-tier to volume pricing can cut unit cost by up to 35%, which either widens your margin or lets you run promotions without losing money. This is why proving a design at low MOQ and then scaling the reorder is so powerful — your costs fall exactly as your sales rise.

Build the margin in before you launch. Discounting later is easy; raising prices on existing customers is painful.

Velocity Wear gives you an itemised, all-in landed cost up front — garment, decoration, branding, shipping and duties — so you can price with confidence from day one, plus volume tiers that improve your margin as you scale. Request a free quote to model your numbers.