The hoodie is the product with the widest price spread in the market. A similar hooded sweatshirt sells everywhere from hypermarket prices to designer prices, and the cost gap between them is far smaller than the price gap. That is why, with hoodies, the method you use to set the price matters almost as much as the product itself.
Method 1: cost-plus
Cost-plus means taking the full landed cost of the garment and adding a fixed margin. It is the simplest and safest method, because you cannot accidentally sell at a loss.
A hypothetical example: a hooded sweatshirt in 3-thread fleece has a landed cost of 85 lei (fabric, rib, cutting, sewing, drawcord, labels, packaging). With a target margin of 55% on direct sales, the price excluding VAT is 85 / 0.45 = 189 lei.
The upside: it is quick, easy to explain and protects margin. The downside: it ignores what the customer would pay. If your hoodie has a fit or finish people would happily pay 300 lei for, cost-plus leaves money on the table. If the market will only pay 150 lei, cost-plus gives you no warning.
Method 2: market-referenced pricing
The second method starts from what already sells. List 10 to 15 hoodies that are comparable in weight, composition, fit and positioning, and note their real prices (not crossed-out ones). You will end up with a range, say 180 to 260 lei.
Where you sit in that range depends on some honest questions:
- Is your fabric heavier or softer than theirs?
- Do you have details they lack (twin-needle seams, heavy rib, lined hood)?
- Is the brand already known or just starting?
- Where are you selling: Instagram and your own shop, or a marketplace where customers compare side by side?
Method 3: value-based pricing
Value-based pricing starts from what the product is worth to your target customer. With hoodies, value comes from a few clear sources:
- hand feel and weight: a brushed fleece above 300 g/m² feels noticeably more substantial;
- fit: dropped shoulders, the right body length, a hood that sits well;
- durability: how it looks after 20 washes, whether it pills or loses shape;
- identity: what the hoodie says about the wearer.
To test value, run a pre-order or small test batch at a price above your cost-plus figure and watch the conversion rate. If it sells, you have your answer. If not, step down gradually rather than all at once.
Combining the three
In practice you use all three, in this order:
- Cost-plus gives you the floor. Never go below it, not even in a sale, unless you are clearing stock.
- The market gives you the range. It shows what is realistic.
- Value tells you where in the range. If the product is clearly better, move towards the top.
If your cost-plus floor sits above the market range, the problem is not the price but the product or the cost. Revisit fabric, consumption or your CMT supplier.
Where fabric creates value
With hoodies, customers feel the fabric before they read the label. A brushed-back fleece at a higher weight justifies a higher price for a relatively small cost increase, because the per-kilo difference between a mid weight and a heavy weight is spread over a few hundred grams per garment. For a hoodie positioned at the upper end of the market we would choose our 340 g/m² stone beige brushed 3-thread fleece: the weight and the natural shade give a premium look without any print. Compare other options in the 3-thread fleece family.
Typical mistakes
- Pricing purely off competitors without knowing your real cost.
- The same margin percentage on every product. A hoodie can carry a higher margin than a basic tee.
- Permanent discounting that teaches customers never to pay full price.
- Too little testing. A small run tells you more than any spreadsheet.
To set your floor correctly you need a real fabric price. Ask for the stock list of fleeces available by the roll with no minimum, or a price quote for a special shade made to order.
The figures in the examples are hypothetical and only illustrate the calculation. They are not Alteks Tricot prices: we quote the price per kg of each article on request, usually the same working day. Ask for a quote
Frequently asked questions
What margin suits a hoodie sold direct online?
Hoodies usually support a higher margin than basic tees, because perceived value is higher and direct comparison is harder. Many founders aim for a gross margin above 50% on direct sales, but check the target against your real marketing, shipping and returns costs.
How do I test whether customers will accept a higher price?
Launch a small batch or pre-order at the intended price and track conversion and feedback. You can also test two colourways at different prices for short periods. Avoid testing different prices on the same product at the same time, because customers compare and trust suffers.
Does a heavier fabric add much to the cost of a hoodie?
Fabric consumption rises in proportion to weight, but the absolute difference per garment is often modest compared with the extra price a heavier hoodie can support. Calculate actual consumption on your middle size for both options before deciding.
