Pricing smart – the number one secret to higher profitability

The Lynchpin: A masterclass for garment decorators #6

John Lynch shares the number one secret to higher profitability – pricing smart – and how your pricing strategy, not just printing quality, can make or break your bottom line

Let’s face it, most apparel decorators are obsessed with the production side of the business. Faster machines. Better inks. Higher stitch quality. And yes, all that matters.

But if you want to increase profits—and who doesn’t? – there’s one lever more powerful than all the others combined – pricing.

It sounds simple. It’s not. Many decorators under-price their work out of fear – fear of losing the order, fear of sounding expensive, fear of pushing too hard. But smart pricing isn’t about gouging clients. It’s about knowing your value, knowing your segments, and pricing accordingly.

Raise your prices (yes, really)

If your margins are razor thin and you’re constantly chasing volume to make ends meet, it’s time to re-evaluate your prices.

A 10% price increase – if done wisely – can double your profit on certain jobs. You’d be surprised how many clients won’t even blink at a small bump, especially if you’re delivering excellent service, quick turnaround, and high-quality results.

Here’s the kicker: the clients who scream the loudest about price are often the least loyal, the most time-consuming, and the lowest margin. So why are you bending over backwards for them?

Treat different clients… differently

Not all customers are created equal. So why give them all the same price?

Segment your clients. Big-volume reseller? They’ll need sharp pricing. But a corporate client ordering polos for a staff event? They’re usually not price shopping – they want the job done right and on time.

Create price tiers. Offer better rates to clients who pay quickly, provide clean artwork, and place orders regularly. Add ‘nuisance fees’ (nicely, of course) for clients who cause extra work – late payments, dozens of mock-up changes, or last-minute panics.

Price should reflect not just the product, but the true cost of service.

Think lean

If a client doesn’t value (i.e. pay for) that complicated folded, bagged, tagged, repacked, colour-coded finishing process, then maybe you shouldn’t be offering it by default.

Every service has a cost. If you’re bundling in ‘extras’ without charging, you’re eating into your profit. Worse, you’re training the customer to expect more for less.

Offer add-ons as options, not assumptions. Let the client choose. You’ll be amazed at how often they say, “Actually, we don’t need that”. And that lowers your cost, and in-so-doing, boosts your profit margin.

Sell products and not just print time

Contract printing – where you decorate garments supplied by the client – has a place in our industry. It can keep your press running and your team sharp.

But the real profit is in ‘product plus decoration’. When you supply the T-shirt, the hoodie, the cap – and you decorate it – that’s where the magic happens. You make a margin on the garment and the print. You control quality. You avoid mistakes from poor third-party blanks.

If you’re doing too much contract work and your margins are low, ask yourself: are you in the printing business or the profit business?

Know which services make you money

Every decorator has services they like doing… and services that actually make money.

Embroidery on workwear? Often high margin. DTG for single T-shirts? Maybe not. Finishing services like relabelling or bagging? It depends on your efficiency.

Track your profit by service type. If something consistently drains your time and delivers weak returns, either price it higher, or cut it loose.

Final Word

Profit doesn’t come from just working harder. It comes from working smarter, and pricing is the smartest lever you have.

Get intentional. Segment your clients. Strip out the unprofitable extras. Focus on product-margin jobs over decoration-only. Know what you’re worth, and charge for it.

You’re not just printing shirts. You’re running a business. Start pricing like it.