What is your average profit margin per shirt? [t-shirt printers]
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This section of the forum is for discussing the business and finance issues of the t-shirt industry. Which business structure to use (sole proprietor, LLC, S Corp, etc), how to handle billing, where to register your business and get the proper licensing, etc.
What is your average profit margin per shirt? [t-shirt printers]
Also don't forget to factor in rather it is a one sided or two sided print. I sometimes get caught giving a price for a one sided print job and and then find out they wanted a 2 sided print and can't go up. It usually go like this.....
Customer "How much for a shirt"
Me "$XX.xx"
Customer "Great, this is what I want on front and this is what I want on back"
Me..... Grumbling tomyself.
Get the picture? It is easier to do than you think at least for me. Especially when in a hurry or a lot of things are happening at once. Hope this helps.
I've had this happen many times, I simply say oh, o.k., this is your cost since you actually want more than 1 image on 1 side. I never stick to a quote based on a clients lack of up front information.
I am a small volume buyer. I am located in So Ca where Alpha, Staton, TSC as well as others are within 15 minutes from each other. Alpha just moved to So Cal and I was at the ISS Long Beach Show and asked the guy that was to be my inside sales rep for case pricing so I could compete for the bigger shops. He asked me who I was buying my shirts from. He wanted to take buisness from that supplier so he gave me case pricing and 30 days dating. I now have same deal at TSC.
I would say GO TO A TRADE SHOW so you can meet the suppliers all in one place. Get to know who your inside and outside salesman name. They are at the trade show not just to pass out catalogs and show you their new items. They want more buisness and we be a little more aggresive at a show.
This thread has branched into a dirrection different from my original post.
Wow, everyone above me put some great input on this subject. So Im just going to tell you what I do. I purchase my shirts at 8 a piece. Thats because I only order 10 shirts. So I usually charge $25, so that I am getting money back for getting the shirts made, designing the shirts, and for sending the shirts by mail if needed. So I charge a dollar over 3x my original Price, just to even the 24.
Work backwards. I would first play around with the numbers. Use an excel spreadsheet and calculate your break-even point (look up BE point on internet) for each shirt based on selling shirts at X amount of dollars. I fluctuate between $16 for a basic design to $21 for more complicated, labor intensive ones. At least I know how many shirts I must sell of Design A @ $16 to break-even.
Not sure if I answered your question but it has helped know where to price mine based on my costs.
It's important that you cover all costs including your time, then a decent profit which should go into the business account. I've actually had sales lift after raising my prices. It's all about the way the customer perceives the product (and it's your job to create the perception). In my case, my customers saw my tees as a more premium, high-end t-shirt when I almost doubled the prices.
My question is not about profit per printed shirt. I am an online retailer (new) with hopes that I may eventually sell my brand wholesale to retailers. My questions is to those of you who are in similar circumstances that have sold your product to retailers or have attempted to.
What is your typical Wholesale price to the retailer? or what are they expecting?
What is your typical margin when selling wholesale?
If you are paying $5-6 each to your screen printer, is the retailer willing to pay $10-12 wholesale?
Or is your margin much less?
Can you expect to profit 30% after cost of goods sold and a percentage to your salesperson?
Would really appreciate input from any of you who have some experience with the above. Thanks!
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