Data collection

The data collection has been done using online survey, where the PGP 13
and PGP 14 participated. A Google form was floated and the responses
were recorded. The further analysis of the data has been done on
Microsoft excel software, where we have been able to calculate the wtp of
the students for buying a branded Hoodie, and also we were able to
measure their willingness to pay for the customization of the Hoodie and
addition of extra features.

Analysis
The data collected was organized in a table for how many people were
willing to pay what amount against every type of the product.
i)
ii)

First, the cumulative demand for every type of product against

every price point.
After the cumulative demand was obtained, the revenue
generated for every product against every price points was
calculated.
Revenue= Cumulative Demand*Price

iii)

The price point at which the revenue is maximum for every

product type is noted.
Single Set Hoodie
Set of 2 Hoodie
Set of 3 Hoodie
Set of 4 Hoodie

iv)

But there is a constraint on the company for the travelling costs

apart from the cost of production that comes to Rs. 300
Number of Hoodies
<50
50-100
100-200
200-300

v)

650
525
525
525

Travel Expenses
1750
2780
4000
6000

Now taking these costs into consideration, the profit made for
every product type against every price can be calculated.

Profit= Cumulative Demand*(Price- Cost of Production- Travelling costs)

vi)

The price point at which the profit is maximized for every product
type is noted.

vii)

The above price points were arrived at by giving 100% weightage

to revenue first then to profit. But if we assume an equal
weightage to revenue and profit, the price points that optimize
the value give different results.
Final Value= w1* Revenue +w2*Profit
w1= 0.5, w2= 0.5

Single Set Hoodie

Set
of 2 Set
Hoodie
Single
Hoodie
Set
of
3
Hoodie
Set of 2 Hoodie
Set
Setofof43Hoodie
Hoodie

650
525
650
525
525
525
525

Set of 4 Hoodie

525

Conclusion
With different weightages for revenue and profit, different price points are
arrived at that will optimize the revenue/profit.
Hoodie Pricing
Single Set Hoodie
Set of 2 Hoodie
Set of 3 Hoodie
Set of 4 Hoodie

Revenue
650
525
525
525

Under Maximizing
Profit
Equal weight to both
Price
650
650
525
525
525
525
525
525

Reference
How Customer T-shirt Pricing works:
http://www.customshirtplace.com/How-Custom-T-Shirt-Pricing-Works
T-Shirt printing prices:
http://www.seatthole.com/shirt-printing/t-shirt-printing-prices/