# Ideal T-Shirt Profit Margins



## Setreal (Nov 11, 2010)

Hi Everyone!

I was doing some initial research into possibly opening up an online t-shirt storefront and was curious as to what everyone thought was a reasonable profit margin. I calculated up a cost of around 13.50 per shipped shirt through a full-service fulfillment service for screen-printed gildan 6.1oz 4 colors. 

This seemed rather high to me as I imagine such shirts would need to be priced around $15-20, a rather slim margin especially considering this doesn't factor in any marketing costs. Let me know what you guys think!


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## MyNameIsMud (Oct 14, 2010)

I would be quite enthused to hear feedback on this, too.

I am seeking the right printers/shippers to do business with myself. I require a ship on demand (as orders come in) direct shipping... with t-shirt sosts as low as they come for moderate/good QUALITY t-shirts with a great design result. Profits under this light are one of my inquiries as well. I would be interested to anyone sharing their 1st year results for start-up with same requirements.


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## IYFGraphics (Sep 28, 2009)

Setreal said:


> Hi Everyone!
> 
> I was doing some initial research into possibly opening up an online t-shirt storefront and was curious as to what everyone thought was a reasonable profit margin. I calculated up a cost of around 13.50 per shipped shirt through a full-service fulfillment service for screen-printed gildan 6.1oz 4 colors.
> 
> This seemed rather high to me as I imagine such shirts would need to be priced around $15-20, a rather slim margin especially considering this doesn't factor in any marketing costs. Let me know what you guys think!


:welcome:We're glad to have you aboard!

If all your doing is supplying the artwork, and using a fulfillment service to supply the shirt, print & ship then you're not going to be able to make much margin on each shirt, a couple bucks per I think is reasonable to expect.

If you want more margin then you will have to either take on risk by having a run of shirts preprinted in the hopes that they will sell, or take on some of the responsibility like shipping the shirts, if you think about it you're off loading everything to someone else who is expecting to make a profit also.

An example....if you bought shirts for lets say $3 each, hired a screen printer to print 100 of them with your artwork, it might cost you another $2 per shirt to be 4 color printed (not counting any artwork, or screen fees), so your at $5 for a shirt that you can sell for $10-$15 and make all the profit that is there...but you are assuming the risk as to whether it will sell or not, you could get stuck with 100 shirts.

Ideally you want to make your cost x2 or more x3 is even better but there is a limit as to what someone will pay for a t-shirt no matter how cool it is.

Hope this helps.


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## GarageCotton01 (Sep 6, 2010)

As IFY said, you'll be eating up your margins by using a fulfillment service.

I'm sure it's been done, but growing a business into something truly successful via a fulfillment service like that will present a challenge due to the razor thin profit margin you'll be working with.

If you have the means, in my opinion, you'd be better off purchasing higher quality shirts and having them printed in bulk. You'll have a much higher quality product at about 1/2 the cost.... increasing your margin. It's a risk, sure... and you could end up with some inventory you cant move, but with risk comes reward!

Good luck!


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## Setreal (Nov 11, 2010)

Thanks for the advice guys. I did some further research and have indeed discovered that fulfillment is not the way to go for me.


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## Sport T (Nov 10, 2010)

Find a local commercial screen printer preferably close to you that you can develop a relationship with. Purchase the hard goods yourself and have them drop shipped to the printer. Negotiate a price with the printer for the printing and screen and set up fee's. If you have done your homework, figured out the niche market you are going to sell to and have confidence in your designs plus have developed a good appealing web site your products should sell. I would print lower quantities of new unproven designs until you find out how popular that design is. Yes it will take some investment to get going but that's the price of doing business. Don't forget you also need to let people know your site exists.


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## tiredew (Mar 11, 2009)

What's the quantity ordered?

A few things to consider for higher margins:

1. Find out what exactly the fulfillment company is doing for you. If you can do some or all of those steps then all you will have to pay for is the printing itself.

2. Buy more quantity, this will lower your per piece price and increase your margins.

3. Use less colors. If you can have an equivalent design with 2 or 3 colors you will save money.

4. Add something special to your shirts. This will allow you to charge a higher price because your shirt will now be a luxury good. Adding a custom tag might cost a couple dollars but might make your line appealing to people willing to spend 10 dollars more.

5. Combine these things for a serious improvement on your margins.

You should not be paying $13.50 for shirts you will sell for $15. If you can sell them for $20 that is starting to get reasonable.


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## Alpha Statuz (Feb 20, 2009)

Good advice here. I don't really have anything extra to add, but I want to support tiredew's feedback. You definitely shouldn't be paying $13/shirt. 

Here's what I've learned in my early stages:

If you're on a budget, face facts. You may want the shirt that sells for $10 wholesale and looks/fits exactly as you want it, but you simply may not be able to afford it. Choose a line that will sell to you for $3-4/shirt.

Printing shouldn't be running you more than $3-7/shirt if you're being wise and slimming down the size and colors in your designs.

It's just about being economical and reminding yourself that once you sell off your initial runs, you can increase and increase and increase. You just need to give your customers what they want, and raise the expectations as you raise your profits. No one's going to hate on you for what don't see, but you'll be hating yourself for eating the costs on expensive clothing if it remains unsold.


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## MantisMB (Nov 15, 2010)

I use high quality shirts. I found that the better quality shirts can go for more, and generally last longer with my customers. I spent a little more, and received better sales. American Apparel blanks are really great. With a higher resolution DTG, my designs come out spectacularly.


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