[SELLING PRINTING SERVICES] For the shop owners: What is your desired profit level?
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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.
[SELLING PRINTING SERVICES] For the shop owners: What is your desired profit level?
For the shop owners: What is your desired profit level?
I've been doing some profit analysis at my shop to get a better idea of where my pricing is. The question that I ask myself, and the question I'm now asking you is: After all your expenses, what sort of hourly profit do you expect from your shop?
Averaging it out on an 8-hour work day, I can figure out what we need to make on average per hour to break even, but what should the margin be above that? This is sort of a silly question because the answer is obviously "what ever the market will bear" because there is a limit to what people will pay for a service. I also know that higher expenses will equate to a smaller profit than an equal-sized business that has less overhead, but I just wanted to see how other shops tackle this question, and how you price your services to achieve your goal.
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The proud owner of a full service print shop. Screen printing, vinyl decals, stickers, signs and banners, vehicle lettering and wraps, and more! Check out our blog too!
Re: For the shop owners: What is your desired profit level?
Depends..
Let say you do onsie jobs for oh, $16 a garment, than figure you talk to client for 5 min to 10 min, set up job to print ect. you got about 10 to 15 min for that single job.
Now lets says you wanna do strictly contract work, charge anywhere for $6 to $8 for a garment with a 6 to 12 Min order, you may have lower profit margin per garment but increase production on job = more money based that all shirts are same.
So if you got 4 to 6 onsie jobs an hour = $16ea time lets say 5 = $80 with about $10 to $15 in consumables= $65 to $70 an hour profit margin not including over head ect.
Let say you doing contract work mostly with about $8 a garment at 25 an hour = $200 profit minus $60 to $80 in consumables= Profit margin of $120 plus factoring of deal with single client, all same art, less heads, less bs chit chat with them
Than you think to yourself, why the beep am I doing single work and not bothering to do contract work?
Figure if you wanna be Joe 1 or Joe 2 : )
This arent exact figures of course but around a ball park to be looking at.
Me, well, I don't deal with soccer mom's that wanna picture of Timmy, but I will def. date her
Re: For the shop owners: What is your desired profit level?
Thanks for the insight. I asked because I'm in the process of moving to a new, bigger location with a storefront, and I'm starting to figure out all of my costs and what I need to make in order to not only break even there, but make a living. It's a balancing act, for sure.
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The proud owner of a full service print shop. Screen printing, vinyl decals, stickers, signs and banners, vehicle lettering and wraps, and more! Check out our blog too!
Re: For the shop owners: What is your desired profit level?
Yea it can be tough.
What DTG if any do you have? What I'd suggest is give a client as many options of printing as possible to gert extra revenue, when you make money reinvest it in your business : )
For the shop owners: What is your desired profit level? 
