# Setting competitive prices, thoughts?



## musicthreads (Feb 3, 2012)

Hey guys I'm 18 years old and a freshman in college, joining the t shirt printing business (vinyl). I just ordered my equipment last night and will have it set up in my dorm hopefully next week. I've been planning my marketing scheme and I'm wondering if y'all can give me some feedback on my price plans.

Quantity/price each
1-11/$12
12-23/$11
24-99/$10
100+/$8

I figured this way I can still make money but completely own (beat) the local shop that most groups go to here at school. I don't want to make my prices dirt cheap because I don't want to be bothered with a hundred single shirt orders but I figured for started it makes sense to start this way so people will order and get the word out.

I'm not a business major and I'm young so I'm wondering what y'all pros would say about this plan... I'll be working out of my dorm and doing it in my free time so I think this will make me more than enough money should I get the orders I hope to get, but I don't want people to think since my prices are cheap that the quality is as well.

EDIT: I also won't be dealing with shipping since I plan to deal explicitly local.


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## Hegemone (Oct 18, 2011)

Hope the dorms new. Or your gonna be blowing fuses (lots of computers and heavy drain crap on the same circuits) and don't let the room inspectors see your machine they will bam it due to what they will call an exposed heating element. The fire marshall will cite you as well. I used to work running dorms and residence halls.  good luck sorry I didn't answer your question lol.


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## binki (Jul 16, 2006)

your one offs should be more, your first 2 teirs should be more, you need some room in the 24-99 area

Say 
1-5 are $18, 
6-11 are $17, 
12-35 are $15, 
36-71 are $12, 
72-95 are $10, 
96-143 are $8
144+ are $6


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## musicthreads (Feb 3, 2012)

Only problem is I think at the local shop they do t shirts for $18, so I'd need to be competitive. Plus I'm not relying on orders of 100+, biggest orders I see would be around 12, bigger only if greeks actually ordered from me.

As for dorm problems, what if all I have on the outlet is the heat press and vinyl cutter (on one of the others we have a tv, dvd player, phone charger, and 2 laptop chargers)? I blew a fuse the first day I moved in but idk how big of a problem it could be. I know we cant have open heat type things but what do you think the likelihood of them using the ban hammer being? I go to a small school so we don't have like a billion security checks. Will they be able to smell vinyl or something? :/


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## binki (Jul 16, 2006)

So adjust your prices down a little but $12 is too low for small qty's and you have a large gap in 24-100. Being competitive is more than just price. Quality, service, and many other things going into being competitive, not just price. 

Maybe what you can do is make some unique shirts for yourself and wear them and when someone asks where you got it you can offer to make them one for a twenty-spot. See how easy that is? You just made something they can't get anywhere else AND you charged $2 more than the next guy. Problem solved. 


For the greeks you will need to get licensed to do their stuff. Min $40/year per org or 8% of sales, whichever is greater. Their marks are protected but that is often violated. Beware though as the reps from the greeks show up from time to time to check out their gear and they will ask where they got their stuff from and if they rat you out you will get a visit from them. 

As for the fuse issue, the equipment you run will do best on 20amp circuits, your dorm will have 15amp more than likely. The best case is a blown fuse, the worst is a fire from overheated lines if the breaker fails to trip (not likely but it can happen). 

It has to be your call though on doing this though, I can't tell you to do it or not nor can anyone else. Maybe get into a marketing class and make this your project. Then you will be sanctioned at least. 

Good luck.


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## TYGERON (Apr 26, 2009)

Listen to Binki.

Being "competitive" isn't about matching or beating someone else's prices.

And don't get into the "my customers are poor college students" mode of thinking. It's a myth.


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## idonaldson (Sep 29, 2008)

If you find a niche that the locals are not catering to then maybe you can compete at a higher price. A lot of the locals want numbers - make your money doing one-offs and specialty vinyls. You may need to see if there is a public storage place near you and rent a small room as a back-up. Make your shirts there and sell from your room.


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## tprimack (Oct 11, 2010)

I would figure up what you cost is per shirt at your different price breaks then shoot for at least a 40% mark up. Also do some searching for a vinyl cost estimator. I have seen these a few times online and on this site. They allow you to plug in your costs and your labor and come up with a price.


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## musicthreads (Feb 3, 2012)

I can't get over the amp problem (if I don't cancel my order tonight It'll be shipped tomorrow and I can't imagine the pain of shipping something back that weighs 60 something lbs.)

Should I switch from 15x15 (14.5 amps) to an 11x15 (8.5 amps)? How much harder will this make it? Will there be a lot of things I won't be able to do?


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## Hegemone (Oct 18, 2011)

I don't mean to be a downer here but you will also likely have issues with you running a business out of the room, most colleges have issue with commercial endeavors that utilize space they own and not get a cut so typically the judicial system says no as a general rule. As well you won't be able to get a business license for a dorm room address. There are lots of problems you could be running into here that could bite you later (might not, probably not, but could). I would go with the smaller to reduce your amp draw because your neighbors are likely sharing that circuit with you. Yes you will have to be more creative but designs that size are not unrealistic.


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## musicthreads (Feb 3, 2012)

Hegemone said:


> I don't mean to be a downer here but you will also likely have issues with you running a business out of the room, most colleges have issue with commercial endeavors that utilize space they own and not get a cut so typically the judicial system says no as a general rule. As well you won't be able to get a business license for a dorm room address. There are lots of problems you could be running into here that could bite you later (might not, probably not, but could). I would go with the smaller to reduce your amp draw because your neighbors are likely sharing that circuit with you. Yes you will have to be more creative but designs that size are not unrealistic.


I think that I'm going to have to go with the smaller, and hopefully give me a little more stealth throughout the whole thing? Personally I think colleges should promote students running businesses out of their dorms. Make use of what you have, right? Not to mention there are entrepreneur dorm communities. I'm not sure if there are small available commercial offices I could rent around here, it's not the best area. Personally I think 11x15 doesn't make designs impossible, you just have to be creative. Most people on here disagree and since I haven't pressed a single shirt I have no way to disagree.. but I'm glad your thoughts matche up with mine. After all its 15 width right? Most designs aren't super long and if they are they're words which are broken up anyways.

I think I'm going to go with the 11x15 stahls press and 15" roland cutter because it seems that's the only plausible route for me. Cross my fingers the dorm people won't find out and make me stop, that would suck.


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## idonaldson (Sep 29, 2008)

I agree with the above. But some schools have facilities for this and maybe you will have to carry your press to a special building where you will not be breaking any rules and current is sufficient. It is not the best case scenario, but a solution. You will need to plan your work and cannot be so responsive as next day unless it falls on your pressing days. you can have 2 days a week for pressing and 5 days for planning, cutting, weeding, etc. In our business we do not get a day off and you will have to work out your study schedule. If you do not do well in school, you may want to get the larger press. the last part was a joke. All the best.


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## musicthreads (Feb 3, 2012)

Thanks, I've already learned a TON! I changed my order to the 11x15 and currently working on revising my price model as I see how I won't want to be bothered by single one offs when I'm only making a few dollars. I guess I need the mentality that just because I'm a college student, my time is worth something.


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## binki (Jul 16, 2006)

the best time to get into business is when you have nothing to lose and a broke college student is just that. 

good luck and have fun. 

the last college student i knew that was like you started playing online poker and was making $85K/week when the USA cut off US based players. he then went to Las Vegas and won a tournament for $1.2 Million. go figure.


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## musicthreads (Feb 3, 2012)

I guess that says something, thanks! Gives me a good feel for everything.


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## gapipkin (May 29, 2011)

musicthreads said:


> I think that I'm going to have to go with the smaller, and hopefully give me a little more stealth throughout the whole thing? Personally I think colleges should promote students running businesses out of their dorms. Make use of what you have, right? Not to mention there are entrepreneur dorm communities. I'm not sure if there are small available commercial offices I could rent around here, it's not the best area. Personally I think 11x15 doesn't make designs impossible, you just have to be creative. Most people on here disagree and since I haven't pressed a single shirt I have no way to disagree.. but I'm glad your thoughts matche up with mine. After all its 15 width right? Most designs aren't super long and if they are they're words which are broken up anyways.
> 
> I think I'm going to go with the 11x15 stahls press and 15" roland cutter because it seems that's the only plausible route for me. Cross my fingers the dorm people won't find out and make me stop, that would suck.


This is just my opinion, but I think a mistake you made was in the equipment. I think you may need to have started out with less expensive equipment. People may disagree with me, but I purchased a 15x15 heat press off amazon for like $250 that has worked perfect for the last 10 months. I got a Expert 24 vinyl cutter for $400, and a $350 sublimation printer from Cobra Ink. I've learned to use the equipment, and start my business with these, and now I'm looking to upgrade in the future. The Stahls and Rolands are great, if you know what you're doing, and have the orders to pay for the equipment. Your goal should be to make money. The debt you cary on equipment will keep you from growing in the future. 

You still haven't paid for vinyl, and when you rely mostly on 1offs, people are going to want different colors. I'm trying right now to talk a client out of doing gold foil on 1 shirt because I know he doesn't want to pay $50 for just one. Gold foil cost about $35 a roll. If I don't charge him then I'm going to be sitting on $30 worth of foil that won't get used for another 6 months. 

Strategically maximize your investment. Don't try to be too big too fast. You can easily outsource your shirts to a local printer while you learn the ropes and go to class. You're already ahead of the game by a good 5-10 years on some of us, me included. Use that to your advantage. Learn as much as you can while your labor rate is cheap. People like me with a wife and kids, we have to charge so much more for what we do because we're trying to feed our family. Use that to your advantage and you'll blow us out of the water in 5 years, easy. 

If I could do college all over again, I would major in graphic design and minor in business. My degree is in history and I'm a high school graphics teacher. Put it this way, you want to get to a point in which you're not the one making shirts. You eventually want to hire people to do the printing, you'll want to own the business. And believe me, that takes the most work. 

-Greg


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## musicthreads (Feb 3, 2012)

gapipkin said:


> This is just my opinion, but I think a mistake you made was in the equipment. I think you may need to have started out with less expensive equipment. People may disagree with me, but I purchased a 15x15 heat press off amazon for like $250 that has worked perfect for the last 10 months. I got a Expert 24 vinyl cutter for $400, and a $350 sublimation printer from Cobra Ink. I've learned to use the equipment, and start my business with these, and now I'm looking to upgrade in the future. The Stahls and Rolands are great, if you know what you're doing, and have the orders to pay for the equipment. Your goal should be to make money. The debt you cary on equipment will keep you from growing in the future.
> 
> You still haven't paid for vinyl, and when you rely mostly on 1offs, people are going to want different colors. I'm trying right now to talk a client out of doing gold foil on 1 shirt because I know he doesn't want to pay $50 for just one. Gold foil cost about $35 a roll. If I don't charge him then I'm going to be sitting on $30 worth of foil that won't get used for another 6 months.
> 
> ...


I figured buying quality equipment in the first place is both an investment now, as well as later. Why buy cheap equipment when you can afford the expensive and more durable now (even though I wish I could have worked with the 15x15)? Unless of course I get no business and I fail completely, where in that case I'll be out more money (until I resell). I carry no debt on the equipment as, unlike most teenagers... I had a job my senior year where I worked every hour I could, saving every penny possible. Not to mention the prior 16 years of my life where I saved my $5 allowance week after week. That's just how I am, how I was raised, and how I'll always be. I've always been good with money therefore now.. I have money to invest in something most people would be unable to (note that's because I'm hardworking, not because of some innate financial standing as some people assume from a middle class white college student). I _will _need to learn how to use my equipment, hence why I've been watching countless instructional videos (even though my equipment hasn't even shipped yet). I know the real learning will come when everything arrives, but I don't see any debt will holding me down in the near future. At most perhaps slight depression, should it fail ^^.

The vinyl problem is what I'm currently encountering, and trying to figure out how I'm going to go about this.. I've been contemplating buying maybe 7 or 8 different colors and simply offering those to my customers (red, yellow, 2 greens, 2 blues, black, and white) but it's hard to decide which colors will be the most popular before anyone orders. Part of me tells this would be a bad idea as i'll probably find myself ordering specific colors for people, and part of myself tells me it'll be good as I'll have a base supply to offer people. Just as you with your gold foil, I obviously won't wanna buy a roll of a specific color just for one print, unless it's a color I see myself using in the future. I'm thinking also of maybe designing a few t's / hoodies / etc for myself and simply buying the colors I need for those (which will also be part of my word of mouth marketing scheme if people ask) and then ordering other colors as needed. I definitely need help in this area if you or anyone else has an idea.

I completely agree with strategically maximizing investments and this is the reason why I've been trying to cap my spending limit (even though I have more if needed). People keep asking me how much my equipment costs and I'm a pretty modest person if you know me, so I've been avoiding answering that question but people guess random numbers, and from me not answering they know it's well over a thousand. Not being a large investment in the real world, people here at school are shocked and I know for a fact they don't see how it's possible to have that much money (lols)... My point is, I agree that there's a point when someone's trying to get too big too fast. Completely agree. But I don't think I've reached that point... 11x15 heat press and 15" vinyl cutter? My labor rate right now is cheap as you said and that's what I'm most excited about. Some weeks my days are packed with class/homework and very little time left over for even a social life, I think that will be the biggest hinder for me. Not having enough time. But I'll work time in, stay up later, wake up earlier. I understand the risks, the costs (time and money), and the rewards. I may be wrong but I think the rewards will out beat the rest  even if I encounter an 'epic fail.'

One might think I'm a business major and, although technically I'm in the business school, I'm actually a computer science major (lol). T Shirt printing isn't what I want to do for the rest of my life, and I don't really plan on that being the case either. Mainly I just want to make some extra cash, cool clothes for myself, and honestly test my business skills. I've been business minded my entire life and although that may sound unreal, it's true. I hope to do web development after graduation and that being a business in and of it self, I figure even though this isn't related at all, it'll give me experience managing time, resources, and business in general. I know some of y'all are probably thinking something along the lines that... limiting/capping my business to 'spare change' is a killer to growth, don't get my wrong: if the business did boom and for some reason I started bringing in real money, no doubt I'd give though on expansion. Open store space somewhere local. Hire employees and marker broader. These are all possibilities but keep in mind they aren't my goals. I'm not trying to feed a family, buy a house, 'get rich quick.' This is part hobby, part business which I think can give me a comfortable living for the rest of my college career.


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## pnnc0133 (Jul 30, 2011)

Honestly I would be more in line with your local competitors. Why be soooo much lower ya know.mif they can get it for that price then so can you. You will also be saving the students a trip off campus for placing the order and picking up.

As for doing it in a dorm 1 it is illegal but that hasn't stopped others but I just can't see how you will have the room. Our dorms were tiny barely fit two people and personal items let alone friends or misc items.


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## mamag (Feb 17, 2012)

So, Kevin -

Just read the thread...am interested in your decisions/progress, etc. I am new to the industry as well and learned a lot from your posts...

Lisa


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