Are you thinking about starting a clothing business?
Wholesale sweatshirts and hoodies is where the big money is right now.
By 2032, the wholesale hoodies and sweatshirt market is expected to hit $381.40 billion in value.
But here’s the thing…
You’d be surprised how many people don’t know that wholesale sweatshirts are one of the most profitable clothing items to sell if you use the right strategies.
And the right strategies are what I’m going to break down for you here.
You can make gross profit margins of 50-60% when you source smart and price correctly.
In this complete guide, I’m going to share the EXACT strategies proven successful by wholesale businesses to make the highest profits with sweatshirts and hoodies.
Let’s dive in!
Here’s what you will learn in this complete guide:
- Why Wholesale Sweatshirts Are Your Best Profit Opportunity
- Smart Sourcing Strategies That Boost Your Margins
- Pricing Tactics That Maximize Every Sale
- How to Identify Your Most Profitable Product Categories
- Scaling Your Wholesale Business The Right Way
Why Wholesale Sweatshirts Are Your Best Profit Opportunity
The proof is in the numbers.
65% of men are planning to purchase at least one sweatshirt in 2024 at a time when most businesses are worried about a recession.
Sweatshirts and hoodies are no longer just for the colder months either.
They’re a year-round wardrobe staple for people wearing them for:
- Casual outings
- Wearing at home for comfort while working
- Athletic activities
- Fashion statements
And here’s the kicker…
Wholesale sweatshirts are the most profitable items in your entire product line.
With the right supplier, you can purchase sweatshirts and hoodies at 40-60% below retail prices if you buy in bulk. This gives you tons of wiggle room to make healthy profits.
Best of all, sweatshirts and hoodies never go out of style.
You don’t need to worry about your inventory going to waste due to changing trends. Demand remains strong throughout the year no matter what.
Smart Sourcing Strategies That Boost Your Margins
This is where many businesses go wrong though.
Focusing only on finding the cheapest supplier without understanding the big picture.
Smart sourcing involves much more than just the unit cost of an item.
Build Strong Supplier Relationships
Your supplier relationship makes a huge difference in your bottom line.
Establishing a solid partnership with a wholesale supplier gets you better prices on bulk orders, first dibs on new styles, flexible payment terms, and faster shipping times.
Don’t just settle for the first supplier that shows up in a Google search.
Send sample orders to a few different suppliers. Test quality, compare shipping times, and evaluate customer service before you commit to large quantities.
Buy in Volume (But Be Smart)
Bulk discounts are your friend.
The larger your order, the more you save per unit.
But you have to be smart about it…
Know your average monthly sales volume before overordering and running out of cash.
Here are some order ranges you can start with as your business grows:
- Small test orders – 50-100 units to sample quality
- Regular orders – 200-500 units for typical inventory levels
- Bulk orders – 1,000+ units to capture highest discounts
Increase your order quantities as you start to sell more of your inventory.
Focus on Versatile Styles
Here’s a little secret…
The most profitable wholesale businesses carry classic, versatile styles that have the broadest appeal. They focus on:
- Solid colors (black, grey, navy, white)
- Classic cuts and fits (nothing too trendy)
- Mid-weight fleece fabric (not too hot, not too cold)
- All sizes (stock S-3XL at a minimum)
Reserve trendier products for smaller test orders only. Your core stock should be high volume products that are consistently in style.
Pricing Tactics That Maximize Every Sale
The way you price your products determines your profit margins.
Most wholesale businesses are satisfied with net profit margins of 5-10%. But with the right pricing strategy, you can do much better.
Use the Absorption Pricing Model
The keystone markup (cost x 2) is so last decade. Use the absorption pricing model instead.
It calculates your costs like this:
Cost Price = Production Cost + (Overheads + Admin Expenses) / Number of Units
Add your desired profit margin to your cost price to determine your wholesale price.
For example…
If your cost price is $12 per sweatshirt, and you want a 50% profit margin, your wholesale price is $18. The retail price should be $36-45.
Offer Volume Discounts to Buyers
Incentivize larger orders by creating tiered pricing structures that reward buyers for purchasing in bigger quantities. You can still maintain healthy profit margins on larger orders by:
- 1-50 units: full wholesale price
- 51-200 units: 5% discount
- 201-500 units: 10% discount
- 500+ units: 15% discount
Larger discounts encourage buyers to increase their order value and move more inventory.
Don’t Compete on Price Alone
If all you do is compete on price, you’ll never win.
Instead, compete on VALUE to command higher prices:
- Fast shipping times
- Quality products
- Excellent customer service
- Easy returns/exchanges
Buyers are willing to pay more for reliability and great service. Don’t be a price cutting drone. Build a reputation for value and earn better margins.
How to Identify Your Most Profitable Product Categories
Not all sweatshirt styles are created equal in terms of profitability.
Focus on these high margin categories:
Fleece Hoodies
Fleece fabric continues to see growth because it’s:
- Softer and more comfortable than standard cotton
- Lighter weight (cheaper shipping)
- More durable and long-lasting
- Popular for active wear
Profit margins on fleece hoodies are 10-15% higher than standard cotton sweatshirts.
Oversized Fits
The oversized fit is a trend that’s here to stay. Buyers love these baggier styles for comfort and fashion, especially younger demographics and trendsetters.
Oversized hoodies can retail for 20-30% higher prices with only 10-15% higher production costs. Huge margin win.
Customization-Ready Blanks
Blank sweatshirts ready for screen printing, embroidery, and heat transfer are year-round best sellers. Print shops, promo companies, and small businesses source these wholesale all the time.
Stick to quality blank styles in popular colors and you’ll build a repeat customer base who reorder regularly.
Scaling Your Wholesale Business The Right Way
You’ve got the basics down now. It’s time to scale.
But scaling too fast is one of the biggest mistakes in business.
It can eat your cash flow and bring down your margins. Scale sustainably by:
Reinvesting Your Profits
Put at least 50% of your profits back into buying more inventory.
Then your other 50% is your actual profit you can pay yourself.
You can:
- Place larger orders for lower prices
- Expand your product line
- Build a safety stock for busy seasons
Automate What You Can
When volume increases, manual processes hold you back. Get systems in place to automate:
- Inventory management
- Order processing
- Customer communications
- Shipping and tracking
You will recoup the time savings immediately. Plus, you will have more time to focus on growth.
Expand Product Mix Gradually
Don’t try to sell every product all at once.
Grow your product range strategically:
- Start with your core sweatshirt styles
- Add related products like hoodies and crew necks
- Introduce complementary items like joggers and tees
- Test out seasonal items in limited quantities
Test and scale new products that make sense for your existing customer base while maintaining target margins.
Putting It All Together
There is nothing magical about maximizing profits with wholesale sweatshirts and hoodies.
In fact, it’s pretty simple… IF you have the right mindset and strategies in place.
Focus on sourcing smart, pricing your products correctly, and figuring out your most profitable categories. These three areas will be the biggest differentiators between you and the price cutting beginners.
Here’s what I want you to remember:
- The wholesale hoodies and sweatshirt market is growing 6.77% annually
- Smart sourcing is ALWAYS better than cheap sourcing
- Profit margins of 50-60% are realistic with strategic pricing
- Focus on versatile, timeless styles for core inventory
- Scale slowly while reinvesting profits
Start using these strategies today and turn your wholesale business from a survivable hobby into a booming success.
The opportunity is huge… All you have to do is reach for it.
