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tabasco · August 6th, 2009

I have created a t-shirt that a brick and mortar store wants to make and sell for me.
What is typical arrangement for us to split profit. I don't know what his cost is to produce the shirt but for me to buy in bulk costs $6/shirt. He sells all his shirts at $16.95.
Would he pay me "x" / shirt. How much would that normally be?
Tshirts are not my business but I have a good slogan on this one and he thinks we could easily sells a couple thousand.

13Graphics · August 6th, 2009

If he really thinks he can sell a couple thousand he should have no problem giving you $2000 to buy the design. That's only $1 each, and the rest is all profit for him. His cost to produce them is probably under $2 per shirt.

Most likely though, he thinks he might sell a couple hundred, then tell you he only sold a few.

You could tell him you want anywhere from a penny to $5 a shirt, but you may never see anything out of it.

tabasco · August 6th, 2009

So should I find a separate supplier and then sell locally?

novanutcase · August 6th, 2009

Quote:

Originally Posted by tabasco


	So should I find a separate supplier and then sell locally?

If they are going to take the risk of manufacturing the product then you can arrange a licensing agreement with them to license your design. The amount is whatever they will be willing to pay for it so you're going to need to put your negotiating hat on and see what you can get for it.

If you take the risk/cost of manufacturing it then your return will be much higher.

Here's how I would cost it:

If he wants to retail it at $16.95 I would divide the retail cost buy 2.4(Normal retail markup). This would mean the wholesale price of the shirt would be $7.06. If it costs you $6 finished to produce a shirt then you need to ask yourself if it's worth the risk to make $1.06 per shirt. If he orders 2000 shirts from you then you could potentially make $2,120 off of the order. Keep in mind that you'll have damages within that order so lop off around 5% and that should give you your net net as to what you'll actually make on the project.

John

Rodney · August 6th, 2009

This thread may be helpful as well when thinking about percentages: Percentage? Fair? Consignment?

sunnydayz · August 6th, 2009

If I am reading this correctly, the retail store would be printing and selling correct? So basically you are trying to figure out what the royalties would be for them using your design?

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What is typical arrangement for a split profit between a retail store and the designer (like consignment)