The actual cost of a shirt

[cross owl]

3 hours ago, Costello 77 said:

We all know it's a racket.

 

 

  I am sorry , I am so so sorry , its a sickness really but I just can't stop myself . . . . 

[matthefish2002]

Sheffield FC are selling home and away shirts for £20.

Hallam FC are selling theres at £26.

Now I cant imagine they produce more then a couple of hundred each of these and still have a mark up to make a profit.

 

SWFC must produce thousands of these shirts making then cheaper per unit and selling them at £60.

Just plain greed.

[McRightSide]

6 hours ago, chazzyowl said:

Very good point. The smaller the manufacturer the higher the production costs. Just think, larger brands such as adidas and Nike produce millions of feet of material to produce kits for hundreds of clubs around the world most using the same template; thus making the production cost remarkably low. Where as a manufacturer such as the one we're using will produce far less in comparisons and the bespoke nature of the kit means that the production cost will more than likely be higher than that of the major manufacturers. In theory anyway.  

 

And even at those volumes they make very little profit on sales

[bradowl]

Like last season's shirts I like it but I probably won't buy one simply because I rarely buy one for myself, might buy one for Grandson as he's 7 and starting to get into football.

[Owl999]

7 hours ago, londonowl said:

With talk of 1000% mark ups and the like, I thought I would post some figures on shirt costs. This is not a defence of anything, just information. This is based on a retail price of £50 so will be out of date in 6 weeks!

 

Licensed Product, Adidas, Nike etc.

 

Average Production Cost including shipping, £4.79

Sportswear Firm Average Profit, £12.79

Club Licensing Fee, £2.79

Retailer Profit, £18.13

VAT, £8.25

The remainder is taken up by distribution, marketing etc.

 

This means that the club porits just £2.79 from shirts sold through 3rd parties though £20.92 through own retail outlets.

 

For our own 'Self produced...by Kit Partner Elev8...but made by On The Go Sports' shirt the figures are made up but explained.

 

Average production cost will be higher, I know some will claim the brands to be of a higher quality but this is not necessarily the case and they have economies of scale. Expect production cost of around £6.

Sportswear firms profit will be lower. As a new company looking to make a name for themselves, they will be hoping the deal is a good one for their business. I would be surprised if they are making more than £5 per shirt so we are looking at a cost to us of around £11 per shirt. We have presumably used air freight which will have increased the shipping cost from under 2p per shirt to closer to 50p though this may have been borne by the manufacturer.

 

Anyway, I would estimate a landed cost of approximately £11. It's a guess but not totally plucked out of thin air. In reality, it could be slightly lower but not much.

Import Duty is 12%, £1.32.

Obviously the club retains all retailer margins, there are no licensing arrangements and little in the way of distribution or marketing costs.

 

Shirt retails currently at £40.84 + VAT giving the club a theoretical estimated profit of around £28.52 per shirt (assuming all the staff in the 'Megastore' work for free), an extra £7.60 over the brands. You have to ask yourself if it's worth the trouble. If we shift 30,000 shirts, the extra profit would be around £228,000. Not an insignificant amount of money but not a particularly significant one either.

 

I would guess that for FFP, what we actually have in place is some kind of complicated licensing agreement with 'Elev8' who actually have the kits made in return for an annual licensing fee and then we obviously retain the retailers margin on top but at a lower level because in return for inflated an annual licensing fee, we will be buying the kits from Elev8 at an inflated price.

 

Obviously there is a lot of guessing in this but it absolutely is not a '1000% mark up' as I have read more than once. Actually closer to a 70% GP which is not particularly unusual in the clothing industry and especially in areas where overstocks are likely (for something with a limited lifespan). What it doesn't justify though is being the most expensive in the division at the full £59 price. That's just greed.

 

Makes no difference to me. Both my kids know that I will not buying a Wednesday shirt without stripes and the away kit is not the most appealing so unless they pull something out of the bag with the 3rd kit, they are 4 shirt sales down this year.

I was told production cost was 4 pounds per shirt by the same person that told me the retail price was 59 pounds, your breakdown of figures is excellent, the only other factor is that this small Australian manufacturer are trying Break the European market so will have gone with a lower profit margin to get a foot in the door so to speak .

[1867Heaven]

9 hours ago, londonowl said:

Oops, didn't realise that was so long until I posted it. The abridged version is below.

 

Club is making money on the shirts. They don't have a 1000% mark up. £59 is too much. I'm not buying one. I like to reply to my own posts.

That’s something I found on internet from last season with when the price of kit is £49.45