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How to price tees very low and still profit?

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Old March 3rd, 2016 Mar 3, 2016 1:58:01 PM -   #1 (permalink)
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Default How to price tees very low and still profit?

Ok, I've been having an awful time trying to figure out how someone can create a tee with whatever medium and charge a dirt cheap price like $5 or $6 dollars. How does that happen? Huh? How?

Are they getting tees for free and only charging for the ink or vinyl? How are they making a profit?

I've been asked for quotes and to keep the bid low I figure for only half the cost of the vinyl (btw, I use vinyl and laserjet) and/or drop the tee cost a dollar for color tees, ect. I still come up with about $7 at the lowest with making a very small profit.

An example is tha I priced for red tees with vinyl design requiring one 12x15 vinyl sheet ...

YOUTH TEE
My Cost - $2.73/tee
- $1.25/12x15 vinyl sheet (I divided the vinyl cost in half for
each tee since I could one sheet for 2 youth tees.)
Customer Cost - $7.96
S TO XL
My Cost - $2.69/tee
- $2/12x15 vinyl sheet (reduced from $2.50)
Customer Cost - $9.03
2XL AND UP
My Cost - $6/tee (averaged cost between 2X and 3X)
- $2/12x15 vinyl sheet (reduced from $2.50)
Customer Cost - $12

Someone please explain this to me. Should I take a loss for the sake of bulk sales?

'Preciate your advice.
 
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Old March 3rd, 2016 Mar 3, 2016 7:41:01 PM -   #2 (permalink)
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Default Re: How to price tees very low and still profit?

Check the cost of vinyl by the roll instead of the sheets, I think it's cheaper that way. Keep checking different suppliers for competitive prices and consider larger orders for bulk savings.

No, you shouldn't take a loss. Especially if you mean by selling the shirts for less than they cost you.

Your pricing doesn't seem to take into account amortization of your equipment, replacement blades for your cutter and other maintenance items, power costs and other overhead.
 
Old March 3rd, 2016 Mar 3, 2016 7:41:17 PM -   #3 (permalink)
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Default Re: How to price tees very low and still profit?

Lot of printers will get very low just to keep a press and workers busy. For example on one recent bid we had, 100 black tees, s-xl. Customer was calling around getting bids.

We can buy the shirts for around $1.60 each, about .30 per shirt to ship to us=$1.90 per shirt our cost. One side print, white ink, simple artwork which we create at no charge, if its very simple. Ok thats $190. Now since we are a manual shop how long to print the shirts comes into play, we figure one shirt print/flash/print/dry takes about a minute each, usually less but we'll figure a minute per. Ok so in 100 minutes the shirts are printed, we'll figure another minute to fold and put nicely in box, ok so thats 200 minutes total for this job, about 3 hours more or less, usually less but we'll figure 3 for simplicity.

$190 shirt cost
$300 labor @$100/hr

$490 was our bid, $4.90 per shirt. We lost the bid to a shop that has an automatic press that bid $3.00 per shirt. They didnt make much on the order BUT they did it in much less time than we could have done.
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Old March 3rd, 2016 Mar 3, 2016 8:33:53 PM -   #4 (permalink)
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Default Re: How to price tees very low and still profit?

[QUOTE=Recie;3543370]Ok, I've been having an awful time trying to figure out how someone can create a tee with whatever medium and charge a dirt cheap price like $5 or $6 dollars. How does that happen? Huh? How?

Are they getting tees for free and only charging for the ink or vinyl? How are they making a profit?

I've been asked for quotes and to keep the bid low I figure for only half the cost of the vinyl (btw, I use vinyl and laserjet) and/or drop the tee cost a dollar for color tees, ect. I still come up with about $7 at the lowest with making a very small profit.

An example is tha I priced for red tees with vinyl design requiring one 12x15 vinyl sheet ...

YOUTH TEE
My Cost - $2.73/tee
- $1.25/12x15 vinyl sheet (I divided the vinyl cost in half for
each tee since I could one sheet for 2 youth tees.)
Customer Cost - $7.96
S TO XL
My Cost - $2.69/tee
- $2/12x15 vinyl sheet (reduced from $2.50)
Customer Cost - $9.03
2XL AND UP
My Cost - $6/tee (averaged cost between 2X and 3X)
- $2/12x15 vinyl sheet (reduced from $2.50)
Customer Cost - $12

Someone please explain this to me. Should I take a loss for the sake of bulk sales?

'Preciate your advice.[

1. You will not be able to compete with a screen printer doing bulk jobs. If you are doing heat transfer vinyl, your cost will not change per shirt. You have to cut and weed all the vinyl for each shirt , while a screen printer uses the same screens, so the more shirts in the order the lower the price the screen printer can charge. Have you looked into plastisol transfers? its a screen printed transfer on paper that you would just heat press to a shirt and would be much better when doing bulk orders and not to mention less expensive.

2. Doing HTV and sublimation offers a niche that screen printers cannot do, small orders and this is probably where you will make your money. When I screen printed, I would not touch an order smaller than 12 shirts and it was very expensive for the customer, so doing these small orders can be good money.

3. Find a contract screen printer and embroiderer.
 
Old March 3rd, 2016 Mar 3, 2016 9:15:00 PM -   #5 (permalink)
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Default Re: How to price tees very low and still profit?

Never take a loss, that is a bad business strategy. Your competition might be following this strategy which cuts not only their throat but yours.

You need to find wholesalers for every product you buy that are as inexpensive a possible, have you tried Alibaba ? Perhaps buying shirts direct from India ?

Rather than fighting to be cheap, you may want to concentrate on adding value to your product and trying to sell better goods for a reasonable and profitable price. My competition sells retail shirts for $10, we sell better quality ones for $22.... sure we sell less, but we also don't have to spend as much time on packing goods, and more on marketing for what I would assume are the same net profits.
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Old March 3rd, 2016 Mar 3, 2016 9:29:03 PM -   #6 (permalink)
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Default Re: How to price tees very low and still profit?

Could it be possible you are seeing screen printing prices? Vinyl pricing is a bit more pricey.

Vinyl can also be more time consuming, so be sure to charge for your time. Don't try to be the lowest.
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Old March 4th, 2016 Mar 4, 2016 12:42:06 AM -   #7 (permalink)
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Default Re: How to price tees very low and still profit?

You are never going to be able to compete with the cheapest, ther will always be someone who is going to be prepared to work for less than you are.
Also you can never compare pricing between screen printing and HTV.

You don't say what quantity the cheap guys are quoting for, what size logo, or what kind of company they are.
A lot of printers will only mark-up blank garments by 20-25%, and they may be getting free inward shipping. Your competitor could be paying less, or using a cheaper garment.
Their advertised price may be based on a small logo - large prints will be more. One yard of 20" HTV will yield 30 - 40 small logos. Maybe 30 cents per logo, in your money. A little over a dollar for a 10x12" print.

Add your shirt cost of 2.69 to the logo price, and you come in at less than $3 material costs. That will leave them $2-$3 per shirt to cover overhead, staff and profit.
If your competitor is working from their dining room table, in the evening after work, there are very few overheads, wages or even tax to consider. They are probably happy to earn $2 a shirt while watching TV.
Even if they are a commercial print shop, like Kenneth said earlier, they are keeping an employee busy. A good worker will easily be able to cut, weed and press 100 simple logos in a morning. That's potentially $200-$300 dollars gross profit for maybe $50 wages.

I wouldn't want to work for those prices, but if I had to choose between an employee earning something for the business, or sweeping the floor again, I know what I'd choose.
 
Old March 4th, 2016 Mar 4, 2016 6:15:12 AM -   #8 (permalink)
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Default Re: How to price tees very low and still profit?

Hi,

I am curious what vendor you are using to have such a low cost point to purchase your t shirts. How many do you typically order?
 
Old March 4th, 2016 Mar 4, 2016 6:32:03 AM -   #9 (permalink)
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Default

Quote:
Originally Posted by Bugmeister
Check the cost of vinyl by the roll instead of the sheets, I think it's cheaper that way. Keep checking different suppliers for competitive prices and consider larger orders for bulk savings.

No, you shouldn't take a loss. Especially if you mean by selling the shirts for less than they cost you.

Your pricing doesn't seem to take into account amortization of your equipment, replacement blades for your cutter and other maintenance items, power costs and other overhead.
I will check the roll prices. Thank you. No, I don't add the other costs in this type of job. I have my online store with my personal designs that I make up that cost. For jobs like this where a customer gives me a design for a church group, etc. I try to keep the bid low.
 
Old March 4th, 2016 Mar 4, 2016 6:35:03 AM -   #10 (permalink)
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Default

Quote:
Originally Posted by Kenneth59
Lot of printers will get very low just to keep a press and workers busy. For example on one recent bid we had, 100 black tees, s-xl. Customer was calling around getting bids.

We can buy the shirts for around $1.60 each, about .30 per shirt to ship to us=$1.90 per shirt our cost. One side print, white ink, simple artwork which we create at no charge, if its very simple. Ok thats $190. Now since we are a manual shop how long to print the shirts comes into play, we figure one shirt print/flash/print/dry takes about a minute each, usually less but we'll figure a minute per. Ok so in 100 minutes the shirts are printed, we'll figure another minute to fold and put nicely in box, ok so thats 200 minutes total for this job, about 3 hours more or less, usually less but we'll figure 3 for simplicity.

$190 shirt cost
$300 labor @$100/hr

$490 was our bid, $4.90 per shirt. We lost the bid to a shop that has an automatic press that bid $3.00 per shirt. They didnt make much on the order BUT they did it in much less time than we could have done.
Thanks Kenneth59. That was really helpful. I don't feel as bad now. I would love to know where you get a color tee priced at $1.60.
 
Old March 4th, 2016 Mar 4, 2016 6:46:49 AM -   #11 (permalink)
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Default

1. You will not be able to compete with a screen printer doing bulk jobs. If you are doing heat transfer vinyl, your cost will not change per shirt. You have to cut and weed all the vinyl for each shirt , while a screen printer uses the same screens, so the more shirts in the order the lower the price the screen printer can charge. Have you looked into plastisol transfers? its a screen printed transfer on paper that you would just heat press to a shirt and would be much better when doing bulk orders and not to mention less expensive.

2. Doing HTV and sublimation offers a niche that screen printers cannot do, small orders and this is probably where you will make your money. When I screen printed, I would not touch an order smaller than 12 shirts and it was very expensive for the customer, so doing these small orders can be good money.

3. Find a contract screen printer and embroiderer.[/QUOTE]

Thank you. I understand that now. The reason why I didn't use plastisol transfers is because for this particular job, someone requested a quote for their design in vinyl. I believe they asked for that in particular because they know that's what I do. In the future, I will try a plastisol quote for the customer instead. Thank you.
Outside of that, for my own designs for my online store, I can't buy 12+ of each of my designs because I'm building my brand on the customer's ability to customize my designs to their taste as far as wording and color. Makes it hard to order plastisol or screen printing that way.
 
Old March 4th, 2016 Mar 4, 2016 6:48:23 AM -   #12 (permalink)
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Quote:
Originally Posted by williekid
Could it be possible you are seeing screen printing prices? Vinyl pricing is a bit more pricey.

Vinyl can also be more time consuming, so be sure to charge for your time. Don't try to be the lowest.
That has to be be it. Thanks. I have a better plan for the future now.
 
Old March 4th, 2016 Mar 4, 2016 6:51:38 AM -   #13 (permalink)
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Quote:
Originally Posted by KittyWhoopAss
Hi,

I am curious what vendor you are using to have such a low cost point to purchase your t shirts. How many do you typically order?
I buy from JiffyShirts. I've been comparing companies for over a year, but Jiffy comes out the lowest for me every time after shipping costs.
I buy probably 10 to 50 shirts at a time.
 
Old March 4th, 2016 Mar 4, 2016 8:48:31 AM -   #14 (permalink)
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Default Re: How to price tees very low and still profit?

Quote:
Originally Posted by Recie
I buy from JiffyShirts. I've been comparing companies for over a year, but Jiffy comes out the lowest for me every time after shipping costs.
I buy probably 10 to 50 shirts at a time.
You should definitely look around a little more for better prices on shirts.
 
Old March 4th, 2016 Mar 4, 2016 8:52:59 AM -   #15 (permalink)
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I'm trying.
 






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