Blank Garment Markup: How to Price Wholesale Costs
Blank Garment Markup: How to Price Wholesale Costs
You've negotiated a great deal with your blank supplier. A Gildan 18500 hoodie costs you $4.50. But what do you actually charge your customer?
This is where many shop owners freeze. They either guess, follow a competitor's price, or use a markup so thin it barely covers overhead. The result: lost profit on every single order.
Blank garment pricing isn't complicated—but it does require structure. Here's how to build a sustainable markup strategy that keeps your margins healthy while staying competitive.
The Industry Standard: 2.5x to 3.5x Markup
Across screen printing, embroidery, and promotional product shops, the industry standard blank markup is 2.5x to 3.5x your wholesale cost. This means:
- Wholesale cost: $4.50 hoodie
- Retail price: $11.25 to $15.75
Why this range? Because your blank cost isn't just material—it's a placeholder for:
- Shrinkage risk: Pre-shrunk garments still move. Factor in 2–3% customer returns and replacements.
- Slow-moving inventory: Blanks sit on shelves. You've paid for storage, humidity control, and potential color/size obsolescence.
- Supplier price volatility: Cotton prices fluctuate. Your markup needs buffer room.
- Damage in transit: Roughly 1–2% of blank shipments arrive with defects.
- Color matching variations: Running a reorder? Dye lots shift. You may need to absorb small color variations or replace entire runs.
The 2.5x floor protects you operationally. The 3.5x ceiling gives you breathing room during slow seasons or supplier disruptions.
Adjust Markup by Garment Category
Not all blanks are equal. Premium garments, hard-to-source items, and specialty fabrics justify higher markups.
Standard Weight T-Shirts & Basic Apparel
- Markup: 2.5x to 2.8x
- Why lower: High competition, commoditized category, easy to find alternatives
- Example: $2.00 shirt → $5.00–$5.60 retail
Premium & Specialty Blanks (Triblend, Organic, Performance Fabric)
- Markup: 3.0x to 3.5x
- Why higher: Lower supplier volume, higher perceived value, customer justifies premium price
- Example: $6.00 triblend tee → $18.00–$21.00 retail
Outerwear (Hoodies, Jackets, Sweatshirts)
- Markup: 2.8x to 3.2x
- Why: Higher base cost absorbs 2.5x more naturally; seasonal demand creates holding costs
- Example: $5.50 hoodie → $15.40–$17.60 retail
Hats, Caps & Structured Items
- Markup: 3.0x to 3.8x
- Why higher: Specialized vendors, lower order volumes, unique fit/construction means higher returns if wrong size
- Example: $3.25 cap → $9.75–$12.35 retail
Eco-Friendly & Certified Blanks (Fair Trade Cotton, GOTS)
- Markup: 3.2x to 4.0x
- Why: Premium sourcing, certification costs, customer expectation of higher quality, smaller supplier base
- Example: $7.00 GOTS shirt → $22.40–$28.00 retail
Factor in Volume & Relationship Economics
Your cost per blank drops at higher volumes. Your markup should reflect that efficiency—but not disappear.
Small Orders (1–50 units)
- Adjust markup to 3.0x–3.5x (higher individual pack costs, less supplier discounts)
Medium Orders (51–500 units)
- Standard markup 2.7x–3.2x applies (sweet spot for most shops)
Large Orders (500+ units, customer-direct)
- Consider tiered pricing: 2.4x–2.8x (volume justifies slightly lower retail markup, but you're compensating with turn speed and cash flow)
- Never go below 2.2x, even on bulk orders. Your operational costs don't disappear at volume.
Account for Supplier & Season
Domestic suppliers (Screen Stars, Jerzees, Delta Apparel) often cost 15–25% more than overseas (Gildan, Fruit of the Loom, Hanes). Adjust markup proportionally:
- Imported blanks: 2.5x–2.8x (lower cost baseline)
- Domestic blanks: 2.8x–3.2x (premium price justified by faster lead times, higher margins)
Off-season inventory deserves higher markup to compensate for slow movement. If it's June and you're holding heavy winter stock, bump markup 10–15% to incentivize movement and offset carrying costs.
Account for Decoration Method
Your blank price should account for what's going on it.
- Screen printing: Blanks are commoditized. Standard markup applies.
- Embroidery: Premium blanks are more common (pique polos, performance tees). Use 3.0x–3.5x.
- DTF/DTG: Customers often want premium quality. 2.8x–3.2x is normal.
- Vinyl applications: Blanks take abuse. Account for higher returns. 2.8x–3.1x.
The Sanity Check: Does This Cover Overhead?
Before locking your markup, run the math backward.
Example:
- Blank cost: $4.50
- Your markup: 3.0x
- Retail price: $13.50
- Gross profit per blank: $9.00
Now ask: Is $9.00 per unit enough to cover my facility, equipment maintenance, labor overhead, utilities, and insurance?
For most shops, yes. A single decorated garment should generate $12–$25 in gross profit after all decoration costs. The blank markup is just the first piece.
This is where a platform like Kontraktr can help—tracking true margins across decoration methods, so you know if your blank markup is actually sustainable.
Transparency & Customer Expectations
Some customers will ask why a $4.50 blank is $14.00 retail. Here's your honest answer:
"The blank is raw material. Your price covers wholesale cost, inventory holding, shrinkage risk, quality control, and the systems I've built to make sure your order ships on time. Plus, when you order 100 shirts, I negotiate with suppliers on your behalf and absorb the risk if supply costs shift."
Customers who understand value don't haggle. Those who do are often high-maintenance anyway.
Practical Action: Build Your Markup Chart
Take 30 minutes this week to map your blanks by category:
- List 10–15 of your most-ordered blanks (Gildan 18500, Bella+Canvas 3001, Port Authority polos, etc.)
- Add your current wholesale cost (from your latest invoice)
- Calculate 2.5x, 3.0x, and 3.5x for each
- Decide which markup fits your market position and risk tolerance
- Input into your pricing system (spreadsheet, Kontraktr, or your POS)
- Track actual margins for 90 days to confirm the markup works
Revise quarterly as costs shift and your business grows.
The bottom line: A 2.5x to 3.5x markup on blanks is industry standard for good reason. It protects you from cost volatility, holding costs, and operational risk. Anything below 2.5x is leaving profit on the table. Anything above 3.5x works only if you're a premium-positioned shop or in a high-income market. Know your category, your costs, and your risk profile. Then stick to your price with confidence.