Will American Students Pay $18 for T-Shirts?

Tuesday 27th of July 2010 01:09:06 AM

There is a factory in the Dominican Republic that deserves attention. In a country usually marked by low wages and poor living conditions, the workers in this factory are earning a living wage. That means some of the workers can even afford a new home with indoor plumbing. For those living in countries where homes and running water are taken for granted, it may be hard to understand the gratitude that workers feel towards the garment factory.

The living wage is being paid by Knights Apparel to its 120 employees. The factory owner is a South Carolina company and this is an experiment in some respects. The Dominican Republic factory produces clothing including sweatshirts and t-shirts that are sold to American universities. The promotional clothing is worn by students to show support for the school and its teams. The logos are controlled by the Collegiate Licensing Company.

The question is whether the students are willing to pay $18 for a t-shirt not manufactured as a premium brand. The high selling price is required to cover the higher wages paid to the factory workers.

Some experts are hopeful that buyers will be willing to support the fair labor practices by paying more for their printed t-shirts. Others, like consultant Andrew Jassin are not convinced consumers will pay this price for t-shirts unless a strong marketing campaign is waged. The shirts are produced under the label Alta Gracia and the tags will be used as marketing tools by promoting the factory’s desire to treat its workers well.

People agree that they want this factory to succeed. Earning a fair wage is a critical first step in lifting people out of poverty. The universities in the U.S.A are supporting the project by placing large orders and running advertisement.