# New screen printing competition under cutting everyone



## Reddawgs (Mar 26, 2008)

Hi everyone I am new to this site, but have found great info. Has anyone ever had a problem with a new competitor way under charging for screen printing service? I have even talked to the owners and they seemed pretty happy making .45 cents per shirt, They contract there screen printing and apparently have found a company who can screen printing there shirts that these guys provide to them at a price where they can sell shirts for $5.00 and still make money on 20 shirt or less order. These guys are clueless. What should I do? any help please?
Thanks,
Greg


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## XYLisa (Jan 20, 2008)

*Re: New competition under cutting everyone*

We had someone start a business a couple blocks from us and undercut us on our screenprinting also. As time wore on they found they couldn't keep those prices and pay bills/employees etc. Hold on to your prices and don't worry about them.....Maintain quality, timely turnaround and good customer service, guaranteed customers will be coming your way. Most people find out the cheap prices also gives you a cheap product......you get what you pay for! Good luck.


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## rrc62 (Jun 2, 2007)

*Re: New competition under cutting everyone*

What Lisa said. They will eventually have to go up...or go out.


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## 109935 (Apr 14, 2007)

Be very carefull. You may be tempted to have them do your printing. Eventually they will have to either lower their quality or raise prices to you. If you are happy to take advantage of the opportunity of them charging you a low price, do not pass the saving on to your customers. Why? Eventually you will have to pay them more or have them done elsewhere. Either way the price to you will have to go up and you will have to pass that on.
At the end of the day, all your customers will remember is that you are the one who increased prices. The goodwill you build up will be gone. You will then be looking for a new customer base.
In the mean time, if a business is foolish enough to operate at a loss and not realise it, make hay while the sun shines. In the longer term, people undercutting the industry through incompetence or profitless work benefits nobody.


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## tman07 (Nov 14, 2007)

When I started 16 years ago, it was me and two other printers in this area. Now there are about 10 and the competition is driving prices down, while my expenses are going up.

I just saw an advertisment in the online newspaper, someone is offering 100 white t-shirts, two color front for $2.50 - no setup. - Good grief!


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## davbw (Feb 13, 2008)

I'm not in the screen printing business, but I just started a line of tee's with a Native 
theme. I found the best t-shirt for the price, "shaka wear" 7.1 ounce for $2.25 shsl white.
these a great shirts. I then started looking for a printing method, dtg, heat, screen. 
and of course this is were the hard decision, which method. Again I chose what was the
best for the price, screen printing, then I had to find the right printer, and I think I have
he is less expensive then others I talked to. but I watched him setup the screens
which he spent hours doing, and I mean hours, getting the right colors, then when he
was not satisfied he made a new screen, started over. Like I said I don't know much
about screen printing other then what I read, but I always go for quality first.
Best
Dave


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## marlo45 (Oct 4, 2007)

*Re: New competition under cutting everyone*



ImageIt said:


> One promo we've been kicking around is 25 black, 100% cotton t-shirts printed in full process color for $200. Why i like this promo...


... is because i met a screen printer yesterday who has been printing for 15 years, he said. He is scared to death of the 4 color process printing even after his proclaimed 15 years! 

Now i know this process is demanding of attention and a precise technique, but i am willing to do the trial and error necessary to calibrate the whole process to an exact science. I hope i'll be successful at it, eventually.

I think if anyone could do this and offer a similar promo/special, the competition may take a while to get up to speed if at all they decide to follow suit.

As for the OP, I don't have great advice about pricing, all i know is that if you can be making a profit that is worthy of your time, then maintain as low a price as you have to if that's what gets you the business, and do produce your best quality all the time.


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## bok (Mar 17, 2007)

2,50 for print or 2,50 for printed T-shrt?


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## bok (Mar 17, 2007)

Thank you, on manual or automatic press?
In Croatia where I'm from same job is around 1,44, on automatic press. for example 1 quart of white ink is 36 usd, can you imagine that??


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## Reddawgs (Mar 26, 2008)

ImageIt said:


> I believe the answer is $2.50 for everything.
> 
> From a simple price model, the blank shirt will cost $1.00 (in case lot). This leaves $1.50 times 100 shirts for production, or $150. To be profitable at this price, a job like this needs to be able to be turned in 2 hours. My price is $3.25, which is $225 for the same job, which would allow 3 hours.
> 
> fred


Fred do you not have overhead? Do you do your printing in a basement or garage? what about the cost of getting the screen ready to burn? cleaning supplies? Ink? electricity? Tape?


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## bok (Mar 17, 2007)

Yes I 'm well aware of prices in America, I import inks from States, and they are best!


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## tpitman (Jul 30, 2007)

*Re: New competition under cutting everyone*



ImageIt said:


> McDonald's made a business by selling a hamburg for 15¢.
> 
> There is not need to trace or convert to spot colors, just accept what is given by the customer, and as best as possible, reproduce the graphic as given.
> 
> fred


Aside from the comment about factoring overhead costs, the comment about "just accept what is given by the customer, and as best as possible, reproduce the graphic as given" eliminates the "art charge" many have to tag on to cover prepress art preparation, but it can ruin your reputation before you're off the ground. All the disclaimers in the world, or signed proofs, will salve the disappointment, and subsequent bad reputation, of a crappy job, even if it's a great print job of a crappy piece of art. I worked with an offset printer who said, "the person who approved the art won't take the blame when his boss asked who printed the job, and the boss thinks to themselves 'that shop won't be printing any more of our work'". The printer will ALWAYS get the blame for the final product, and no matter how good your skills, you can't make a crappy piece of art any better than it is. I'd make it part of my plan to plan on turning away jobs that will reflect poorly on your shop. If I don't think a job will turn out well, I don't take it, whether it's my inexperience at that type of printing, or the customer's crappy file that they insist is good.


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## perrolocodesigns (Oct 24, 2006)

Fred,
Do the prices you are offering include screen charges, or will you be charging that in addition to the printed shirt price?


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## nardwin22 (Mar 25, 2008)

they will find out the hard way...


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