We are using a t-shirt with the picture below as an example:
Fabric type: cotton 160 GSM | Round-neck
Cost Break-down
Raw material: $0.65 to $0.85
Making cost: $0.50 to $0.65
Printing: $0.20 to $0.35
Trims: $0.05 to $0.10
Total: $1.4 to $1.95
So the total production price for this t-shirt is always going to be under $2
Now, if you are looking to buy just 20,000 pcs of this t-shirt (in different prints but same design) and the factory overhead (fixed cost) is $5,000 per month spread across two months of production time, then the total overhead cost would $10,000
Overhead costs per t-shirt would come out to be around $0.50. So the total cost, including overheads in this case, would be $2.5.
Assuming a 10% -15% margin for the supplier, this would put the t-shirt costs between $2.75 to $2.90 per unit at 20,000 pcs, which is great if you are retailing at $20 per unit or higher.