Towel Price Calculator: How To Price Your Custom Towels?

Towel Price Calculator: How To Price Your Custom Towels?

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How to Calculate The Price For Your Towels

Our calculator is designed to be simple and easy to use. It covers:

  • your base costs of time
  • salary
  • materials

It also allows you to input a desired profit margin on top.

We hope this calculator helps you make more money for your towels business.

Please input below:

More Tips On Pricing Your Towels

How To Price Your Towels

One of the most challenging aspects to starting a towels business is determining how much to charge for your towels.

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 towels, it's critical that you first identify all of your costs and consequently mark up your towels so you can factor in a profit.

The actual cost of your towels may include things like:

  • The actual cost to make the product (ie. raw materials, supplies, manufacturer).
  • Shipping + overhead fees
  • Rent
  • 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 towels, you'll want to create goals for revenue + how much profit you want your towels business to make.

This process is simpler than you may think:

  1. Think about your breakeven cost (by completing the above step).
  2. Create a revenue goal based on your break-even cost
  3. Evaluate the # of items you plan to sell in a given period (make sure this is a realistic number)
  4. 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 towels 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 towels fits best in the marketplace.

All of these factors play an equal part in pricing your towels, 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.

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Lauren Costanza, on starting Bluminary ($500/month) full story ➜

Examples of a successful towels business:

Dock and Bay ($5.4M/year)

Andy Jefferies from Sydney, New South Wales, Australia started Dock and Bay about 6 years ago, a towels business.

  • Revenue: $450,000/ month
  • Founders: 2
  • Employees: 12
  • Location: Sydney, New South Wales, Australia

I’m Andy, co-founder of Dock & Bay which is an awesome new lifestyle brand selling travel apparel, fitness, and beach accessories for those who love exploring this awesome world.

We sell towels, swimwear, ponchos and hair wraps, always with a cheeky touch of colour because we don’t believe in taking life too seriously. It’s just more fun that way.

We reinvented the towel to be sand-free, quick dry and super absorbent while staying compact, because no one wants a towel that takes up all of their suitcase space.

how-two-founders-started-a-5m-year-business-selling-beach-towels

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Andy Jefferies, on starting Dock and Bay ($450,000/month) full story ➜

The Bali Market ($144K/year)

Grace Druecke from Scottsdale, Arizona, USA started The Bali Market over 5 years ago, a towels business.

  • Revenue: $12,000/ month
  • Founders: 1
  • Employees: 0
  • Location: Scottsdale, Arizona, USA

Slim margins, out of stock inventory and a shaky foundation. That’s how The Bali Market functioned in its first year of business.

I’m Grace and I own The Bali Market, a Turkish beach and bath towel company. The business was launched on Amazon in 2016. I didn’t have a clear understanding of how I was going to run the business. I mean, I didn’t even know who I was selling to or why they would actually want my towels. Regardless of my muddled business plan, I crawled my way to the first page of Amazon. My towels sold out quickly and were getting five-star reviews.

That all sounds great but my margins were tiny (thanks to Amazon's hefty fees). And selling out meant I lost my first-page ranking. Even once I had more products in stock I was unable to get back to the first-page status.

how-i-started-a-12k-month-turkish-beach-and-bath-towels-brand

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Grace Druecke, on starting The Bali Market ($12,000/month) full story ➜

Pat Walls,  Founder of Starter Story

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