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Profit - Missing Something ?



 
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Old August 15th, 2007 Aug 15, 2007 3:25:20 AM -   #1 (permalink)
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Default Profit - Missing Something ?

Listers,

I am just starting into researching fulfillment services and found that PrintMojo has the best profit percentage of the fulfillment services out there. I calc'd for 200 shirts plus 3 additional colors, the profit would be about 42% if selling at $20. The other services are only 10% - 20%. Am I missing something ?

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Shirtguy64
 
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Old August 15th, 2007 Aug 15, 2007 10:09:12 AM -   #2 (permalink)
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Default Re: Profit - Missing Something ?

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Originally Posted by shirtguy64
Listers,

I am just starting into researching fulfillment services and found that PrintMojo has the best profit percentage of the fulfillment services out there. I calc'd for 200 shirts plus 3 additional colors, the profit would be about 42% if selling at $20. The other services are only 10% - 20%. Am I missing something ?

Thanks,
Shirtguy64
The main difference is that you have to PRE purchase those 200 shirts with PrintMojo since the t-shirts are screen printed there.

Not sure which other companies you checked, but if you were looking at ones like CafePress/Spreadshirt, then the big difference would be that with those services, there are no up front costs to sell a t-shirt. They print them on "demand" using heat transfers or direct to garment printing.

So its a tradeoff of not carrying stock for less profit or carrying stock for more profit.
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Old August 15th, 2007 Aug 15, 2007 12:30:47 PM -   #3 (permalink)
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Default Re: Profit - Missing Something ?

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Originally Posted by shirtguy64
Listers,
I calc'd for 200 shirts plus 3 additional colors, the profit would be about 42% if selling at $20. The other services are only 10% - 20%. Am I missing something ?
You may also be missing the fulfillment fee of $3.50 per order, which on an order for a single shirt cuts a ways into that profit margin. It makes sense in a Printmojo store to do everything you can to encourage orders of more than one shirt, to spread that fee out.

Because they let you establish your own discount coupons that are available on orders above a given dollar value it's pretty easy to create a discount coupon for an order of two or three shirts. That way the customer gets a better deal, while you can amortize the fulfillment fee on those larger orders.
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