Adult White Tee – The Industry Loss Leader

A question we get all the time is “why are your kids tees more expensive than your adult tees?, specifically in the color white.”  This is a very logical question.  One would think that because kids tees are smaller and would use less material the price would be less.  But that just is not the case.  If you look on our website and our competitors site you will see that kids white is more expensive.  There are two main reasons why:
  1. Adult White Tees as a loss leader–  The entire t-shirt industry uses the white tee as a loss leader.  Since its the most popular item, companys price it the cheapest with hopes that when the customer buys the adult white they will also purchase more profitable items.  This tactic is used at the manufacturing level, distributors level, and even with some retailers.  And taking it a step further, this idea of a loss leader is used in many many industries other than the apparel industry.  So yes, the adult white tee may cost more than the kids white tee, but the industry strategically charges less for it.
  2. They manufacture less units of the kids white tee– Because the adult tee does such large volume, the initial startup costs for running the machines is less.  Like anything, the more volume the cheaper the price.  Kids tees are more of a niche item so the overhead is more and the cost becomes more.

I know this still may not make complete since but either way there is nothing that can be done about it.  Our cheap kids white t-shirts cost more than adult white tees as a general rule.  There are times when that is not the case but its not often.  Either way, we have some great prices on both.  Happy t-shirt shopping!

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