[rqp5013]

Hey everyone,

Just wanted to get some input from some seasoned professionals from this website.

I am student who recently graduated from Penn. State University and I am working to partner with this company that basically partners with screen printers and provides an online service.

I would buy a license essentially for $300/month and the website owner sets up a website for my location after I partner with a screen printer. I would basically partner with a screen printer by saying I will bring in thousands in revenue per year and you give me a discounted rate on the t-shirts that are printed for me to resell.

This website is kind of like customink.com in that you can design the shirts and order online. The great thing about this is that it is a local screen printer that you end up picking up your custom apparel at. This is mainly for large university organization and bar tours/crawls who order custom t-shirts all the time.

The other great thing for this model is the fact that if an organizer just wants to design the t-shirt but not front all the money for his/her organization then he/she gives out the link to design and individual members pay online for the shirt. Once order is finalized then organizer submits it and he/she gets all the info on who ordered and what size and picks up on big batch at the partner screen printer.

I am a little nervous on this because getting organizations to order at first. Since I am just out of college I don't have much money, but this opportunity seems worthwhile. I am applying for medicall school next year so have next two years while im volunteering and working part time.

How do you guys say I would market this kind of service besides facebook/twitter?

Would flyers and ads in the school's daily collegian (which almost everyone reads) work?

Thank you for your input.

 

[kimura-mma]

Maybe it's because I don't have all the info, but it sounds kinda similar to a pyramid scheme.

To better understand what your earning potential is, what is the typical markup on the orders? Does a percentage need to go back to the licensor?

I'm not quite sure I see the value in paying $300 per month for the website when you are going out and doing all the sales and marketing. If you have the ability to get screen printers to give you discounted rates by "saying" you will bring in thousands in revenue and you have the ability to get organizers to place custom t-shirt orders, then just go out and do it yourself.

But to answer your question regarding marketing...
If the print shops are local and you want clients to pick up their orders, local marketing would work best. Ads in local publications and fliers in local places sound like good ideas.

 

[rqp5013]

well his website is a great tool to have to make things easier. Since I have graduated I can literally call potential customers or email them to get them to order online.

His website has great marketing material like tutorials and videos. He is a video production major so he makes very nice videos.

But then again I am just acting as the middleman really. basically get orders and p rocess them to the screen printer for about 20%. I have a 20% margin (not much).

Essentially I would need to sell about 150-180 t-shirts a month to break even with the licensing fee.

But since I am targeting a school with 40,000 students (hundreds of organizations), I hope to be slightly successful. I just wanted some input on if you guys think I should go for this business or not?

I was also thinking on spending the $3600 (first year cost for licensing) and just pay a web developer to make the website for me in a way. I am not sure how much these companies would charge, but then essentially not licensing fees ever.

 

[fdsales]

As a screen printer in this biz for 25 years, I think this is a very risky venture. You're going to pay someone else $3600 (most likely all up front) of your own money, then YOU have to go out & do all the really hard work, which is marketing your product. You will be faced w/ very stiff competition, especially targeting a large school that several other printers are already calling on, so you're fighting against more experienced competitors. Then when you get an order, you have to worry about someone else you don't know printing the job; making sure the job is correct, delivered on time, and the quality of the print is perfect & acceptable to your customer. Most likely you'll have to pay up front for the job, so if your customer is not satisfied, They don't pay you, and then you're out the money. Then, if all works out OK, you only make 20%, which means that at an average retail price of a printed t/shirt of $8,(that's if you don't have any competitor bidding on the same job) and you sell 200 per month (if you're lucky), that's $320 profit, so like you said, that's break even for 1 month of your investment. You have to do that EVERY month just to break even on your investment. Finally, go to the internet and see how many t/shirts web sites are up there...hundreds if not thousands. Think long & hard before you drop your money.

 

[jwalk2515]

so you are going to pay someone to be a sales rep for someone else

 

[PositiveDave]

As a screen printer in this biz for 25 years, I think this is a very risky venture. You're going to pay someone else $3600 (most likely all up front) of your own money, then YOU have to go out & do all the really hard work, which is marketing your product. You will be faced w/ very stiff competition, especially targeting a large school that several other printers are already calling on, so you're fighting against more experienced competitors. Then when you get an order, you have to worry about someone else you don't know printing the job; making sure the job is correct, delivered on time, and the quality of the print is perfect & acceptable to your customer. Most likely you'll have to pay up front for the job, so if your customer is not satisfied, They don't pay you, and then you're out the money. Then, if all works out OK, you only make 20%, which means that at an average retail price of a printed t/shirt of $8,(that's if you don't have any competitor bidding on the same job) and you sell 200 per month (if you're lucky), that's $320 profit, so like you said, that's break even for 1 month of your investment. You have to do that EVERY month just to break even on your investment. Finally, go to the internet and see how many t/shirts web sites are up there...hundreds if not thousands. Think long & hard before you drop your money.

Don't you hate maths?

 

[rqp5013]

yes it is a very risky venture that is why I am very nervous. Either I will do really well or I will lose money. the company is shirt and simple .. I d on't want to post the website on here because don't want to be in trouble, but they have a very unique model. It is geared towards organizations/groups that don't want to their organizers to front the money. The organizer can design the shirt onlilne then give out the link to friends/members to pay individually for their shirt. Then once everyone orders and it is submitted organizer goes and picks up the t-shirts. I spoke with some of the franchisees and they are doing average. I mean they haven't done any marketing or anything, but they are barely breaking even (which puts me on the side of caution). I have a screen printer I am going to speak with tomorrow and I was really thinking if I should do this or not considering that other franchisees have not even done that well. The owner of this company is doing really well however. He does $100k+ in sales every year with a profit of 20%. First year he started the business in UofIowa he did $60k in sales and its been increasing ever since. The other thing I was considering was partnering with a screen printer and basically telling him that its $600/month for service and I will help you advertise. There are few screen printers that are very big in the area (I am talking with one of the bigger and cheaper ones). Thank you for your input everyone.

 

[mikelmorgan]

The trick to a successful screen printing business is repeat business. If your customers are picking up their shirts at a local printer what's to keep them from dealing with that printer on their future orders?

 

[Kime]

It sounds like a great deal ....for the person you pay $300 a month to.