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Pricing dtg for larger orders.

3K views 24 replies 10 participants last post by  tshirtjunction 
#1 ·
I know dtg is great for short runs with a lot of colors as screen printing these would be too expensive for the consumer but how do you compete with them on larger orders? I‘ve seen on the forums of dtg printers printing hundreds of shirts of the same design for a single customer. How can you price those and compete with the screen printer? Btw, I was that screen printer many years ago and now I am getting into dtg instead. Thanks.
 
#2 ·
Well, other than artwork and maybe shipping of garments to you your cost is constant. It just depends on how much you want to make an hour.
 
#3 ·
I say just don't do it...the most I have printed on the DTG is 200 and it was extremely laborsome and I did not compete with a screenprinters price due to the fact that my labor was involved. The minimum I want to make on a DTG shirt is $12.00 ea. Especially if it has a full back and Front print! Does not matter how many colors. That is with the shirt cost in there too!
:):)
 
#6 ·
I print for a couple of major video game companies as well as movie studios. Runs of up to 1000 DTG shirts at a time. They want the detail and image quality that comes with DTG printing. They know it's going to be $5 or more per shirt over screen printing. They have marketing budgets. I just did 500 pcs of a full color 11"x15" print for a video game that they provided the shirts and I charged them $11 each to print. It had almost $5 of ink on it though. And with pretreating each one and 4 min to print because of the size, it had to be that to be profitable enough.
 
#7 ·
OK,So break it down.

Of course this can't be precise but I'll try to get close.

500 shirts at 11.00 per =5500.00

Pre Treat at .35 per shirt = 175.00
Ink at 5.00 per shirt = 2500

That leaves you 2825.00

Now factor in the time, I'm assuming you at least printed two at a time. You say 4 minutes. I'm assuming that's pre treating it, loading it on the platen, printing it, then curing it for 3 minutes to completion.
It is more than 4 minutes, which nobody factors in the start to finished print.

But let's say it is 4 minutes. You are paying labor or you are doing it yourself which is still paying with your time or you are paying yourself in money. Either way your paying.

So I take 4 minutes per two shirts = 1000 minutes or a little over 16 hrs. Or 250.00 dollars in labor.

That leaves you 2575.00. With them providing the shirt I'd say you did well. That's not a bad profit for that job.

The problem is here, that these people are complete fools to pay you 11.00 per shirt, especially when they are buying the shirt.
The industry standard is 6.00 per shirt on anything over a 100. That's wholesale to other businesses. That's if they are reselling them.
I can find that price in tons of DTG shops all over the country. I just outsourced a job for 125 shirts full back and a pocket print on the front for 6.50 per shirt and the company provided the shirt.

So I paid 812.50 for the job. I charged the client 15.00 per shirt. That's 1875. That's 1062.50 in profit. I didn't pay anybody. I didn't use my time or my ink.
This was a retail job.


So there is room depending on the job if it is worth it to send it out or print it yourself.
So there are many factors to consider when deciding this.
It depends how busy you are. If you can meet the deadline of the client.

I find most guys I know have no real clue what it is actually costing them to do the job.
Anyway, you made out ok on this one. Each job is different. Normally I do not do the larger runs. I focus more on the smaller more profitable retail jobs. I might make less in cash but I'm maximizing my profit and at the end of the year I'm putting good profit away with low expenses.
I'd rather make 500 dollars and basically do nothing than 750 dollars and do all the labor.

Also when I say this. I'm a one man printshop with one printer, me. My wife handles the clients.
I make six figures in sales with one machine and one printer. So I have to do it this way.
If I were those video guys I would be shopping around for a better price. Your lucky on that one.
 
#8 ·
I did want to add that I only really work 6 hours per day. That's important to me. It allows me more time to do other things I like.
I can still make 60 or 70 percent profit on my sales with 6 hrs per day.

So if I make 100000 per year in sales and put away 70,000 per year in profit. I'm happy with that.

I gave myself 14 years to put away 1,000,000. I'm on year seven. Then I want to walk away and retire for good.

So I had a specific goal in mind when I started this. The business has zero debt. Realistically it will be more like 18 years. You have setbacks and equipment issues.
My DTG machines last about 6 years before I replace it. So I need three over the course of 18 years. I am on my 2nd one now.

Almost everybody misses the goal or purpose as to any type of plan. This was mine. Others have a different goal.
 
#9 ·
Wow, this was a good thread. There was only two things left out for me in this thread.
Were these jobs done on dark shirts using white ink and what was the maintenance cost per machine over the 6 year life?
I am in the laser and ink jet sublimation printing on dark shirts and this post answers most of my questions of why buy a DTG over a $900.00 or less if you already own a ink jet sublimation printer that can complete a dark color shirt with process printing in 8 minutes at a cost of materials of $2.50 plus the shirt?
A great smart thread.
AL
atttransfer.com
 
#10 ·
I assumed that when I answered the question that the job was on dark shirts.
No white shirt job, using no white ink would ever be over 5.00. It would never come close.
As far as yearly costs, I can only go by my numbers.

It cost me between 7000 to 8000 in ink, cleaning solutions, pre-treat, flushing solutions, Filters, dampers etc,etc. It will cost you at least 1000 per year in parts.

They don't tell you certain things when you buy the machine. One is the capping station needs to be replaced yearly. That is 600.00.
The printhead is 1200 dollars and depending on use could last you up to three years. I have heard of some lasting that long. I usually have to change one every year and a half or so. That is with no problems of clogging or anything else.

I can tell you down to the penny how to cost out jobs, what is worth doing and what is not. I have had an M2 for six and a half years. I know just about how to trouble shoot most printing issues. Seems like every year though, at least once I run into a buzz saw that I can't solve. Then I have to call tech support.
I know how humidity effects the white ink and the prints in general. What times of years depending on your enviroment what type of issues you will have.
 
#14 ·
I just outsourced a job for 125 shirts full back and a pocket print on the front for 6.50 per shirt and the company provided the shirt.
These will be Hybrids DTG over screen printed base. At least $4.00 profit in there, but you need an $100,000 machine to do it.



They don't tell you certain things when you buy the machine. One is the capping station needs to be replaced yearly. That is 600.00.
Well, they are not telling you about the print head either, because these are considered repair parts and not maintenance parts.





The printhead is 1200 dollars and depending on use could last you up to three years. I have heard of some lasting that long. I usually have to change one every year and a half or so. That is with no problems of clogging or anything else.
The only way it will last 3 years is if you have it in storage mode. Print heads not used regularly will clog and will require replacement sooner. If used regularly, print heads should last for 15 to 20 thousand prints.
 
#11 ·
I answered the thread based on what works for me and what I need to do to make money in a small printshop.

Honestly, if you have a successful business without a DTG I would stick with my strengths and outsource DTG jobs if you want.
I wouldn't buy the machine.

I have made so many contacts in the past six years I am seriously considering brokering and closing the physical part of actually printing.
 
#13 ·
A realist. So good to hear those answers. I couldn,t understand why people are spending so much money when a laser system is so less expensive. I look on ebay and etsy to see what is selling for one off photo shirts and there is always someone selling far less then a decent price. Why buy the equipment if people will do it at such cheap prices.
Thanks,
AL
atttransfer.com
 
#15 ·
Interesting, I have never heard of a Hybird type print.

I use my printhead everyday, but your right, they don't last three years. I have heard of it but it is rare.
I have never had a clog in seven year's. I use my machine everyday. Except weekends.

I am a realist. If it were me and like I said, if I had a good business without a DTG then I would stick with that.
They are a hassle.

My experience with large jobs also is that after your done your normally have to pony up another 224 for a liter of white ink to replace what you used. So you can deduct that also from your profit.
 
#17 ·
Interesting, I have never heard of a Hybird type print.
You have now. It's not new, and they can print full size dark color shirts in 30 seconds. https://www.youtube.com/watch?v=J4OMhIc6Gkw


I use my printhead everyday, but your right, they don't last three years. I have heard of it but it is rare.
I have never had a clog in seven year's. I use my machine everyday. Except weekends.
I do the same, and mine are P800 conversions. I do fill the lines with solution every Friday (just to be safe), and I also save the ink by pouring it back in the bottle. Not a single clog in 2 years. One of my print heads failed this year after around 15,000 prints. The other 3 are still OK but I'm expecting them to fail soon.


I am a realist. If it were me and like I said, if I had a good business without a DTG then I would stick with that.
They are a hassle.
I only DTG cheap multi-color t-shirts. The good stuff gets screen-printed. DTG cannot do glitter, and many more things screen printing can do.
 
#16 ·
Plus you have the cost of the DTG that is a cost amortized over its life.

Think about this. Why do purchasers buy a $17,000.00 printer over another digital printer doing the same image on a shirt costing only $900.00, $3,500.00, or $7,500.00.

I can,t rationalize this thinking.

AL
atttransfer.com
 
#18 ·
I watched the video. It is quite impressive. I see now how they can do this.
I'm a small one man print shop, so this equipment is not realistic for me.
I have a small shop that would not have the room anyway.

I'll continue to outsource my bigger jobs. This is my opinion is the way small print shops have to survive and do a larger volume of business without the huge money investment.

I concentrate on smaller retail jobs that maximize profit and time.

Great machine though, I can see how you can become a large shop fairly easy if you have the cash.
 
#20 ·
The cost of the machine is fairly small by industry standard. If you are a small guy without a lot of cash and want to get into the field then it is probably the best option.
The machines that these large print shops are using are upward of 100,000 dollars.

This is another way to look at it.. I spend close to 10,000 per year on Ink, supplies, and replacement parts. That is where the real money is for the company. They make a ton on supplies, which are over priced. Some companies will not honor the warranties or give you tech support if you are not using there recommended inks and parts made for their specific machine With all the money I have spent over 7 years plus the cost of the machine, which is around 16,500. It adds up to over 7 years 86,500. I still could not buy one of these 100,000 dollar machines.
I don't do loans or financing so anything I would buy is cash.


In a case where I live. Which is NY. It is the most unfriendly small business state I have seen. They hammer you with labor laws, taxes and required insurances that is not worth it at all to expand or have employees.
That is why we keep it small. No employees. Just us two owners. So for me to make a investment to grow into a big print shop it comes with a whole new set of headaches that are not worth it here.
 
#22 ·
The You tube of the Kornit is misleading as most of the DTG sales.
They only show a 30 second print job and that isn,t the complete process.
That is like a ink jet printer or laser printer printing just a piece of paper.
I have a customer who has a laser white and also a DTG printer and he said the time for the DTG is all of the preparation you have to go through and it isn,t just as everyone is showing in there marketing. I just think it is very deceiving marketing tactics.
 
#24 ·
I understand as you were sold a system that was marketed the same way most DTG printers are marketed. It probably only had 3 colors and used a 2 step paper that felt like plastic on the shirt.
You are making a nice product and priced correctly as per your web site. Nice work.
 
#25 · (Edited)
In my shop on bulk or wholesale orders, I charge
on 500 shirts here in Canada

White shirts $13.00 each with the shirt
500 x $13 = $6500.00
Cost per shirt = $2250.00
Profit = $4250.00
Hours required 25 @ 20 shirts per hour

Dark shirts $15.00 each with the shirt
500 x $15 = $7500.00
Cost per shirt = $3620.00
Profit = $3880.00
Hours required 42 @ 12 shirts per hour
 
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