Soccer is one of the most popular sports in the world. Millions of fans wear their favorite team’s shirts to show their support. But have you ever wondered how much it costs to make a soccer shirt? In this article, we will explore different factors that affect the cost of making a soccer shirt, such as materials, labor, transportation, design, printing, marketing, and licensing. We will also compare the production cost with the retail price and profit margin for the clubs and manufacturers.
The Cost and Profit of a Soccer Shirt
Materials for making soccer jerseys
One of the main factors that determines the cost of making a soccer shirt is the type and quality of the materials used. Most soccer shirts are made of synthetic fabrics, such as polyester, nylon, or spandex, which are lightweight, breathable, and durable. These fabrics are usually produced in Asia, where the raw materials and labor are cheaper than in other regions. According to a report, the production cost of a typical £80 shirt is just £8, covering materials, labor, and transportation. This means that the materials account for only 10% of the retail price.
Labor
Another factor that affects the cost of making a soccer shirt is the amount and quality of the labor involved. Most soccer shirts are manufactured in factories in countries like China, Vietnam, Bangladesh, or Indonesia. The wages are low, and the working conditions are often poor in these countries. The workers are usually paid by the piece, rather than by the hour, which means that they have to produce a large number of shirts in a short time to earn a decent income. The labor cost per shirt is estimated to be around £1.60, which is only 2% of the retail price.
Transportation
The third factor that influences the cost of making a soccer shirt is the transportation of the materials and the finished products. The materials are shipped from the suppliers to the factories, and the shirts are shipped from the factories to the warehouses, and then to the retailers or the customers. The transportation cost depends on the distance, the mode, the speed, and the fuel price. The transportation cost per shirt is estimated to be around £0.80, which is only 1% of the retail price.
Design
The fourth factor that determines the cost of making a soccer shirt is the design of the shirt. The design includes the shape, the color, the pattern, the logo, and the style of the shirt. It is usually done by manufacturers, such as Adidas, Nike, or Puma, who have their own teams of designers and researchers. The design is influenced by the trends, the preferences, and the feedback of the customers and the clubs. The design cost per shirt is estimated to be around £2.40, which is 3% of the retail price.
Printing
The fifth factor that affects the cost of making a soccer shirt is the printing of the shirt. The printing includes the name, the number, the logo, and the sponsor of the shirt. The printing is usually done by the retailers, such as the club itself or a third-party seller, who have their own machines and staff. It is customized according to the order and the request of the customer. The printing cost per shirt is estimated to be around £4.80, which is 6% of the retail price.
Marketing
The sixth factor that influences the cost of making a soccer shirt is the marketing of the shirt. The marketing includes the advertising, the promotion, and the distribution of the shirt. The marketing is usually done by the manufacturers and the clubs, who have their strategies and channels. It is aimed at increasing the awareness, interest, and loyalty of the customers and the fans. The marketing cost per shirt is estimated to be around £2.40, which is 3% of the retail price.
Licensing
The seventh and final factor that determines the cost of making a soccer shirt is the licensing of the shirt. The licensing fee is the fee that the club pays to the manufacturer and the fee that the manufacturer pays to the club for the right to use their name, logo, and image on the shirt. It is based on the contract and the agreement between the parties, which can vary depending on the size, popularity, and performance of the club and the manufacturer. The licensing cost per shirt is estimated to be around £4.80, which is 6% of the retail price.
Conclusion
The cost of making a soccer shirt is influenced by many factors, such as materials, labor, transportation, design, printing, marketing, and licensing. The production cost of a typical £80 shirt is only £8, which is 10% of the retail price. The rest of the price is divided among the retailer, the manufacturer, the VAT, and the club. The profit margin for the clubs and the manufacturers is very high, as they earn much more from the deal than from direct sales. Therefore, the price of a soccer shirt is not justified by the cost of making it, but by the demand and the value of the brand.
