Discuss the process of getting your t-shirt line into brick and mortar stores and selling offline. Topics include industry tradeshows, events, line sheets, sales reps and other retailing tips and advice.
I approached a new store the other day and talked to the owner. He said he'd carry my stuff on commission for a 60/40 split. I was so excited I said ok right then and there. After doing the math I'll only make $18 a t-shirt. On the other hand................ he has to rent/lease the store, pay for electricity, pay employees etc,etc. It doesn't take me much to make a shirt, put it in a box and drop it off @ his store.
I'm in this to make some money though. I know I'm not going to make a ton of cash but I want at least enough to get by.
Maybe I'll just have to get more stores under my belt!
Point 1. Derek is a business entity. Point 2. The Store is a business entity.
I find it odd or "FISHY", that he put so much emphasis into describing the trials of the shop owner, rather than being concerned with his own company, "he has to rent/lease the store, pay for electricity, pay employees etc, etc. It doesn't take me much to make a shirt, put it in a box and drop it off @ his store."
I know in the past when I've described "WHY IT's OK, CAUSE" I either made a poor choice or was taken advantage off.
"He said he'd carry my stuff on commission for a 60/40 split. I was so excited I said ok right then and there."
I think it's great that he's making $18. However, in his next experience I think it would be wise to play a business man. If his shirts are that great, perhaps he could make much more.
i know as a shop owner.. (A sign shop not clothes shop) we dont carrry or sell anything with less of a profit margin than 40%.. Its not worth our time or shop space....
60/40 split? Is he carrying them on consignment? If so, then it should be a 60/40 split in your favour. Regardless, make sure you have everything written up. If the t-shirts sell like crazy, you are going to want to change that split!
OK................ The shirts are on consignment @ the shop. yes they are selling for $30 plus tax. It's costing me roughly $7.60 per shirt plus my time and gas.
So out of my $18 I'm left with about $10.40 to cover my labor.
The shop I went to requires a 40% profit as per their contract and that's not bad but not great either.(It's not like my gear is flying off the shelves........... yet!) I'm going to be looking into more boutique style stores next week and hopefully I can pull down some more money that way. Some of the shirts in the other stores I was in today were selling for $40-$87!!!
I do agree with bbode I could have been a little more savvy. I think i just need to generate more buzz and get into more stores to make more money.
60/40 is cool for consignment/drop shipping - if they buy wholesale you should give them an even lower rate usually because it's less responsibility and stress on your side.
Do you think as a business person (shirt making) that you need to sell your shirts online for the same price as it sells in the highest priced store? For instance why would someone buy your shirt at such and such store for $30.00 but you sell it on your site for $22? At the same time it isnt fair to the people who have the shops carrying your shirt when you are selling lower then them.
Last edited by Skyler Francis; November 15th, 2007 at 01:54 PM.
Reason: spelling
Skyler, my advice is to keep the price as consistent as possible. It's easier for consumers and perhaps more importantly, important for proper branding. Moreover, if you're selling shirts on your site for less than the stores, you are hurting the stores in the end and they likely won't want to work with you at some point.
Forget t=shirts. I'm just talking about retail in general.
40% to the shop on consignment might be a bit high. It is certainly the top that should be paid. 30% is more common on consignment. Of course, it depends on the shop. One with a good reputation, selling high-end goods that will give you some volume? OK, 40%.
Ordinary shop, nothing specail, but will handle your line? 30% is good.
New place, you're doing them a favor by giving them something to sell? 25%.
Have an agreement with them. I recently wrote on this in another thread - make sure there is an understanding that they are responsible if an item is gone. Some will try and tell you they didn't "sell" it, so they don't owe. Don't stand for it.
Also, make sure you are covered in case of breakin or fire, etc. You can be added to their insuracne policy as an "also insured" for no additional cost to them, they just need to ask.
Here's a link to a consignment agreement you can copy and edit -
You are not being fair to anyone else selling your shirts if you tell them the retail price is one price and then you sell them for less on your site. I'd stop buying from you as soon as I found out.
You might run a special from time to time. You could do a buy 3 get one free kind of deal, although that would still squeeze your wholesale customers. Maybe a "baker's half-dozen" buy 6 get one free. You could offer Free Shipping. That would actually put you even with your wholesale accounts, since they don't have to charge shipping.
But to tell your accounts you have one retail price and then under-sell them is just plain unethical and brands you as someone to not do business with.
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Is a 60/40 split ok? 
