# Bad economy and future DTG market.



## allamerican-aeoon (Aug 14, 2007)

Good morning all. I turned on CNN and hear all these gloom news. 
What do you see on DTG market future?
Time sit back? Sit on cash if we have any? 
Too old to worry about these %#*^.
Dow went south near 1000 in one week? OMG. All over again?


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## EricDeem (May 7, 2011)

Peter...first off quit watching CNN and switch to FOX 

I have belief that we are on the way back up. I'm noticing more new home construction in my area and thats always a good sign! I also think that the DTG market will continue to grow, look at how far its come in just 5 years. I cant wait to see what will come in the next 5 years.


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## Don-ColDesi (Oct 18, 2006)

Peter,

I am learning as I grow older not to worry as much about things I cannot effect change upon. Your spirit has always been the same - don't lose that spirit! All we can do is continue to forge ahead, doing our best to provide the best solutions - both product and supportwise to our customes who look to us for assistance in growing their businesses. We joust from time to time but I recognize that you are of the mindset that it is not just about the sale - it is about the growth of your customer's business as well. 

Keep the faith!


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## loloxa (Sep 5, 2007)

Companies with liquidity will have an easier time staying afloat so will businesses who manage cash transactions and have a client base already established, people who need credit lines with banks in order to fulfill running costs (wages and rent for example) or need credit to buy machines or consumables will have their competitiveness reduced by the fact that getting a loan will be not just harder but a lot more expensive, so running costs will hike. 

DTG manufacturers who have to take chances building new machinery will be exposed if they lock their liquid in R&D or stocking parts and worse if they get credit for it, that's why in times like this I expect lesser and less innovations, getting the stocks out must be a priority to reduce exposure to the market/credit/debt that is only going against small companies, no matter who says what.

Luckily for lots of you in this macroeconomic scenario printer costs are just a drop in a bucket. My advise? I would seriously push for the south american market, bring out a cheaper machine even if it's only CMYK and sell them to Brazil,Venezuela and Colombia, something they can recoup costs in a 24 to 36 month period, at 6 to 9 $ a tee MAX. 

when you get rich from this advice, send me a fat check.


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## Don-ColDesi (Oct 18, 2006)

Loloxa,

Thanks for the input. Times like these do challenge every company. Part of the issue is convincing companies who could invest into new technology to do so. I am involved day in and day out dealing with companies/individuals who are looking at equipment (DTG as well as embroidery & rhinestone) and the scenario seems to repeat itself. While I do occasionally lose a sale to a competitor - I lose more sales to inaction by a factor of probably 3-1. If we are to emerge from this downturn it is going to take some level of tolerance to risk at all levels. Developers/manufacturers need to continue to develop, distributors/resellers need to continue to improve support & training while being mindful of keeping prices fair, and lastly endusers need to be willing to take some level of risk to grow their businesses instead of just sitting on the sidelines hoping that things get better. The economy can't spring back without consumers investing back into the economy. I've been in this industry over 20 years and have seen some economic downturns - t-shirt sales do not take anywhere near the hit that other goods do, fact is that we as Americans like to wear our attitude for everyone to see. What better way to display your faith, anger, passion than on a t-shirt. Direct to garment printing makes displaying these attitudes that much easier.

No one ever excelled in the business world by doing what was "safe" or "guaranteed".


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## allamerican-aeoon (Aug 14, 2007)

loloxa said:


> when you get rich from this advice, send me a fat check.


Good advise! good voice and point. But how can I write a check to loloxa? what that mean? xoxo I know. Rosa in spanish? 
Yes South America is very good market. Columbia, Chile booming and Brazil(Olympic, World cup bak to back). Mexico is crying for my supply delay.
cymk only printer is so so easy to make at lower cost. Same time After Service cost will be the same as higher priced printer. A/S cost is applied by % on final cost. This is worry some. Bad name, no money to serve ---. AA train distributors weeks and we actually turn many down after training to keep NeoFamily reputation high. This is all in Building cost. 

Below picture is the one of them we refused to sell to two days ago. Good people! We sold to 2 among 4. Do you see Justin W's Champion belt? I pay rent, haha. We have permit to post in TSF from them.
And another one who AA will never sell to but she attends every meeting Justin C's Ippie.


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## loloxa (Sep 5, 2007)

Don

Not advocating to sit this one out, in crisis lies opportunity, but the way the economy is going right now I would not start experimenting, as you said, if you have the infrastructure and the machine is well oiled up, times might be prosperous, and a tighter belt will do wonders.

As an example, one of the big wholesalers in my country was pinched between last years rise in cotton and the higher interest rates , since wholesale margins are smaller than retail, cents on the dollar , such an scenario can be definitive and it was, they no longer produce and are just selling the 2009 inventory. When you are looking at loans in the millions and interests in the 5 or 6 digit range that are revised every 6 or 12 months with escalating interests for the foreseeable future, sometimes the pictures just draws itself. 

Margins for print shops are different so the picture will be different.

And don't listen to the news, they just amplify noise.


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## allamerican-aeoon (Aug 14, 2007)

I see and agree to both loloxa and Don's point. 
My opinion is hold your cash until you sure know you have a good odd. There are no perfect odd. I will say 50/50 is good odd. If anyone afraid 50/50 that person will never challenge on any. Use fullfill service first. Try month or so. No profit is ok than lose big part of life saving. Most of us lost lots of money last week because of bad news. Well comes and goes. Cheer up! Let's fight with harder work. I might have to get back to full time for same pay. 
I worked hard yesterday on golf course and sold 4 machines at 19th hole and lost $5.
Cheers, Beers are on me even on bad economy, always!
Greet me with "Where is my beer?"


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## loloxa (Sep 5, 2007)

Yesssssssssssssssssssss, a cute dog face beats pessimism 9 out 10 times! I don't know why you turned him down , though? Dogs never lie, and I like that.

Peter, keep quality High (brand name, components , brains) but if you have ever been to south america you know that as in china is either to wait for them to meet north american price points, or to find each other half way somehow. ( I have a client from Brasil who swears that he gets a 4 color screen printed SINGLE unit in his hometown, cheaper than I can print a single DTG on a dark tee ,23$, and I believe him, because creativity will beat economic crisis every time).


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## allamerican-aeoon (Aug 14, 2007)

I delete one picture who we refused (man not dog) to sell. 
I take your post as compliment. AA will keep our reputation and quality but Brain? I don't know about that but I do have heart though. So, I do need your advise time to time. Thank you.


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