With the outlook for the economy remaining relatively unchanged, any signs of stability are more than welcome. For those of us in the business of making cheap custom t-shirts, the outlook is positive in the sense that the base wholesale price of blank apparel appears to be steady at this time. The likely hood of significant price changes in 2010 is limited in our opinion but should not be ruled out. This should be welcome news for consumers of custom t-shirts.

While price stability in blank apparel is good news, it is not the only factor used in setting prices. Another tempest lurks quietly behind the scenes and will certainly play a role in price changes during 2010. Raw materials used in the decorating processes are showing signs of upward movement. Many companies are feeling the heat from rising utility costs which play a critical role in determining the level of pricing for cheap custom t-shirts. There is nothing cheap about utility cost in the custom t-shirt world. Every day in our factory, we burn enough gas to run 15 household furnaces in order to dry printed t-shirts. The electric usage in the screen printing and embroidery industry is significant due the square footage of facilities that do volume production. Chemicals used in the preparation processes of screens and the post printing clean-up have risen by percentages that have not yet been realized in the retail and wholesale price of printed t-shirts.

Ink costs will continue to rise if petroleum prices remain at current levels or even remotely creep upward. Screen printing inks are petroleum derivatives. The push to create inks that are free of Phthalateshas generated huge R&D costs and retooling costs for ink manufacturers. Digital printing is under similar pressure as well. Supply prices continue to rise and ink has soared to over $700.00 per US Gallon.

Shipping costs have nearly doubled in the past five years as a result of increased liability insurance, health insurance and fuel costs that UPS and USPS are currently paying. Add increased freight costs to rising raw material costs and the inevitable result is upward price pressure on finished goods.

Our data leads us to conclude that cheap custom t-shirt prices may not remain at these levels for the duration of 2010. We anticipate concluding our first round of increases by April 2010 and taking a wait and see approach for the duration of the year.

Call customer service for the best advice at 800-709-2380.

03/03/2010