How to Calculate The Price For Your Socks
Our calculator is designed to be simple and easy to use. It covers:
- your base costs of time
It also allows you to input a desired profit margin on top.
We hope this calculator helps you make more money for your socks business.
Please input below:
More Tips On Pricing Your Socks
How To Price Your Socks
One of the most challenging aspects to starting a socks business is determining how much to charge for your socks.
When businesses under-price their product, this can be extremely detrimental to their bottom line and reputation.
Often times, businesses under-price their products to drive demand and volume, but that last thing you want is for customers to view your product/service as "cheap." Additionally, this can have a big impact on the type of customer you attract, which can be difficult to recover from.
On the other hand, when businesses over-price, this tends to be just as damaging to the business.
When customers buy, it's likely that they will explore the internet and look at other competitors to ensure they're getting the best value + deal. This is why it's so important that you research your competition and understand where you land in the marketplace.
Here are some factors to consider when pricing your product:
Understand your customer
It's important that out of the gates, you identify the type of customer you want to attract and how much they're willing to pay for your service. One great way to do this is by surveying your customers. Here are some important items you'll want to takeaway:
- Customer demographic: Age, gender, location, etc.
- Buying habits of your customer: What they buy + when they buy
- Level of price sensitivity with your customer
All of these segments will help you identify the type of customer you're attracting and how to price your product accordingly.
Understand your costs
When pricing your socks, it's critical that you first identify all of your costs and consequently mark up your socks so you can factor in a profit.
The actual cost of your socks may include things like:
- The actual cost to make the product (ie. raw materials, supplies, manufacturer).
- Shipping + overhead fees
- Operating costs to run your business
You may want to consider creating a spreadsheet with every single expense involved in operating/owning your business. This will give you an idea as to what you need to generate in order to at the very least, break-even and will help you price your products to factor in a profit.
Create revenue goals
When determining the price of your socks, you'll want to create goals for revenue + how much profit you want your socks business to make.
This process is simpler than you may think:
- Think about your breakeven cost (by completing the above step).
- Create a revenue goal based on your break-even cost
- Evaluate the # of items you plan to sell in a given period (make sure this is a realistic number)
- Divide your revenue goal by the number of items you plan to sell
This figure will help determine your estimated price per product in order to meet your revenue goals.
Evaluate your competition
The last piece in determining how to price your socks is by simply looking at your competition.
The best way to do this is by finding like-minded businesses that offer product(s) with similar perceived value. Then, you can compare prices of the different businesses and determine where your socks fits best in the marketplace.
All of these factors play an equal part in pricing your socks, so it's important you evaluate each one individually to come up with an accurate price that will help optimize your business from the start.
Lauren Costanza, founder of Bluminary provides us with a detailed spreadsheet of all of her costs associated with running her business:
I knew this would be a self-funded adventure, and I set aside $3,000. During the first three months, I had a detailed spreadsheet where I tracked where the money was going and what was going toward products versus researching and developing new products.
The spreadsheets involved columns and rows of numbers to craft a budget and gain an understanding of how much would need to be invested at each stage of the process - from gathering supplies to building a website, and shipping materials.
Examples of a successful socks business:
. Sock Club ($12M/year)
Dane Jensen (from Austin, Texas, USA) started Sock Club over 11 years ago.
Hi, Dane Jensen here, my business partner Noah and I run Sock Club. Our flagship product is socks of course. We started Sock Club as a monthly subscription where we would deliver a pair of unique socks to our customers every month. As we’ve grown we’ve developed a manufacturing supply chain here in the United States. Having the ability to make our own socks made it possible to enter the new market of custom socks. Now making custom socks is 90% of our business and the subscription 10%. Last year we did $12M+ in revenue and we plan to do more than that this year.
. FEAT Socks ($1.2M/year)
Taylor Offer (from Los Angeles, California, USA) started FEAT Socks almost 8 years ago.
My name is Taylor Offer, and I am one of the co-founders of FEAT Socks, a custom sock company based out of Los Angeles, California.
As the Chief Marketing Officer, I focus most of my efforts on the marketing, branding, and exposure for FEAT Socks. I work alongside my co-founder Parker Burr along with a few more employees.
. Hippy Feet ($720K/year)
Michael Mader (from Minneapolis, Minnesota, USA) started Hippy Feet almost 6 years ago.
Hippy Feet is a Minneapolis-based sock and apparel company dedicated to supporting the homeless community. Each product sold allows Hippy Feet to provide transitional employment to young people ages 16-24 who are experiencing homelessness.
. No Cold Feet LLC ($240K/year)
Mari & Matt McNamara (from Chicago, Illinois, USA) started No Cold Feet LLC over 5 years ago.
We are Mari and Matt McNamara and we’re the founders of No Cold Feet, a gifting company currently focused on groomsmen gifts. We’re in our third full year of business and planning on growing our business more than ever with new products, increased marketing, and focusing on growing our various platforms.
Last year we passed $200k in revenue and have cumulatively sold over 10k orders in the last three years.
. From The Ground Up Socks ($30K/year)
Rami Nasr (from Lake Stevens) started From The Ground Up Socks about 4 years ago.
My name is Rami Nasr and I’m the founder and owner of From The Ground Up (FTGU). We’re a Seattle-based brand creating high-performance, stylish and sustainable gear that gives back to protect our trails and public lands. We sell hiking socks that feature the beauty of the Pacific Northwest on them like Mount Rainier and the Cascade Mountains. Our target customer is what we call the “Urban Athlete” – people aged 24-35 who love the outdoors, stewardship and sustainability, and high-performance gear for their sports.
Since starting this business 2.5 years ago, I’ve gotten the brand into over 25 retail locations, done over $170k in sales, and donated around $5,000 to the trails association in our state all while working my full-time job.
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