The other day, I posted a video on YouTube showing step-by-step, how to get your first t-shirt design idea created in just a few hours.
In that video, I took a sketch my daughter drew on paper, wrote up a brief outlining what she wanted, and I submitted it to DesignCrowd (a platform where thousands of graphic designers compete with each other to create your design … You put up some prize money and the design you choose goes to the designer).
If you haven’t seen the original video I posted, watch it below:
(play video above0
Here’s the sketch my daughter drew:
As of this writing, the contest from DesignCrowd yielded over 53 designs from designers all over the world. I’ve included some of the designs for your review below:
The following design is what my daughter selected as the winner:
Here are a few more pictures that were submitted by other designers:
So what do you think … Do you think you can submit your first design today? No procrastination. No excuses.
Get at least one of your ideas out of your head and make a go of this thing already. DesignCrowd is giving you $100 towards your design project. Give it a try and see what happens.
Also, if you haven’t signed up for our course, do that now … One-time flat fee to get in and save a bunch of money with our training course. Click Here!Continue reading
In general, all people are messed up in the head. We all have self limiting beliefs about ourselves, and in most cases, those beliefs just aren’t true …
Nonetheless, we believe them.
And they screw up our lives and our relationships. But there is a way to fix it, which I talk briefly about in this video.
If you haven’t signed up to watch our webinar on how to turn your t-shirt design ideas into a business, go watch here, it’s FREE: Click Here to Get on FREE T-shirt Startup WebinarContinue reading
If you’ve been on the fence about starting your own t-shirt business, hopefully this video is an inspiration into how making a decision to invest in yourself can change your life… Success didn’t come overnight. It came from years of hard work. Many small successes and many small failures got us to the point where we can now dictate a life on our terms.
I don’t have any secrets that’ll make you rich overnight … They don’t exist. What I teach is nothing new. But I take the time to show you a blueprint to follow so you can minimize costly mistakes. I’m more like a map — I show you how to get there faster.
For example, I can sit here in Colombia and teach myself Spanish. But I’ll learn so much faster by connecting with a local teacher. The Spanish I thought I knew is much different here … Different slangs, different ways of pronouncing words and a different way of speaking. Sure, I can learn on my own, but why waste needless months and frustrations when someone can shortcut my learning curve. That’s what I am to you … I’ll put you on a much faster path and my team and I are here to answer your questions and give you feedback.
Don’t shortchange yourself … Make a decision to change your life today!
Our office is still running in the United States. Our staff and me are still actively working with our members. Because of the Internet, I’m able to work anywhere in the world. So don’t feel that because I’m here, that you won’t get the support you need. I was gone much of the year last year and business still ran as usual. Get in and let’s work to change your life!
Enough about t-shirts … Let’s talk about some business basics!
When you are a small business, increasing revenue is always at the forefront of your mind. It can be by increasing sales or decreasing expenses, companies are always looking out for the next big cost saving measure that will increase cash flow. However, one figure that is essential to raising the bottom line, a company’s Profit Margin, is actually rarely ever calculated by small businesses. A business’ profit margin is the easiest and quickest way to calculate how efficiently a company is spending and how profitable it is becoming.
Let’s start by defining Profit Margin. Profit margin is basically the ratio of profits earned compared to the total costs over a defined period (quarter, year, etc). Generally, each industry will have an average profit margin due to associated costs and materials needed for different products.
There are two types of profit margins that small businesses may find useful: Gross Profit Margin and Net Profit Margin.
Gross Profit Margin is used to determine the profit margin of a single, particular item or service, not the business as a whole. To determine this figure, a business looks at the retail price of a product and then subtracts the costs used to produce it (materials/labor). You then divide that figure by the retail price to calculate the gross profit margin of that product.
Net Profit Margin is the equation used to determine an entire company’s profit margin. To calculate the net profit margin, you take the company’s total sales for a given period, subtract total expenses, and then divide that figure by the total revenue.
For example, let’s say your company generates $1000 in t shirt sales with an operating expense of $500. The net profit margin would be 50%.
Examining your net profit margin is a great way to look for ways to boost your revenue, or to take an inventory of what you are spending versus what you are making. It is a tool that will help you isolate what products are affecting your total sales and whether or not to continue to offer that product. It can also help analyze why you have seen a decline in total revenue by identifying increases in spending costs or decreases in sales.
The only catch to conducting a profit margin analysis is that it takes times and effort to gather and verify all costs. To get an accurate net profit margin, a company must include every expense as part of the total. This includes things like utilities, inventory, administrative costs, shipping, etc. Every line item in your ledger that accounts for money being paid to someone else must factor into your total expenses line item.
Similarly, all revenue must be counted as well. Don’t forget non-traditional revenue sources, such as transaction fees or maintenance contracts. Chances are that you will have a much clearer picture of your revenue stream than you do your expenses, so be careful to avoid miscalculations.
Now that you’ve calculated your net profit margin and analyzed it, you can make decisions on how to move your tshirt company towards greater revenue. If your net profit margin is outstanding, there’s no immediate need to make any changes.
If your profit margin is good, this could be the perfect time to explore growth opportunities and possibly taking a look at increasing sales to see how that might affect future profit margins. And if your profit margin leaves something to be desired, it’s probably time to make a change and examine ways to make a profit by decreasing expenses.
In all instances, it’s a good idea to take a long look at any changes that might result from tweaking your profit margin. Always consider your customers, employees and brand when making any kind of change.
Net profit margins are great tools to analyze your t-shirt business and are also a great benchmark to look at each year. It’s a better measure of a company’s profitability since it takes expenses into account and not only sales.
Profit margins are simple and effective ways to check in on the finances in your company. Small business owners can boost their bottom line by keep tracking of these figures!
Choosing a plain tee shirt. How can that possibly require anything more than deciding on a color? If you’re thinking this, you are not alone. Most businesses completely overlook one of the most important pieces to your brand—the foundation for which your very designs are applied to—the t-shirt.
Once you begin searching for that perfect blank shirt to complement your brand, you will begin to notice that there are literally thousands of options to choose from and it can get a bit overwhelming. We’ve narrowed down a few pointers that will help you choose the ultimate shirt for your brand, target market, and budget.
First, which method will you be using to design your t-shirts—sublimation, screen printed transfers (our TOP PREFERRED METHOD) or direct to garment printing? This is the quickest way to narrow down your choices because each method requires different materials. Sublimation requires a 100% polyester garment for good color saturation and direct to garment printing requires 100% cotton for dark colors. However, screen printed transfers can be used on just about any fabric, with 100% cotton or 50/50 cotton/poly blend working best with hot split transfers.
Next, who is your target audience? The demographics of the customers that you intend to market your product will have a huge impact on which tee you choose. You will need to consider who the shirt is being made for—is it a one-time novelty tee? If so, you may not have to worry as much about fit or softness. If it is for a higher-end customer, then softness and fit are very important.
Think about the body type of this market to get an idea of sizes you will need to have, as well as the gender to determine which fit to purchase. Women typically don’t just want a smaller version of a men’s shirt, they prefer different styles, such as v-neck or scoop neck. Finally, consider the budget of your market—how much are they willing to spend on a t-shirt? Your audience is going to be the best gauge to decide on the best blank shirt.
There are also tee shirt options available that can strengthen certain lines that are meant for target audiences. For instance, if your brand’s mission is to sell organic clothing, then you can filter your tee shirt search to organic materials. This is the same for brands who want to market their brand as made in America, you would filter your search to manufacturers in America.
Another facet to consider is softness. If you are selling your shirts, then you will want to take softness into account. It is often a very important factor in the decision to purchase a shirt, along with design and price. When looking for a soft cotton tee, narrow your search to ring spun cotton shirts. Ring spun cotton shirts are thinner and softer than 100% cotton basics and are often called “fashion tees”. For an even softer (yet more expensive) option, try tri-blend shirts. These shirts are 50% cotton, 25% polyester and 25% rayon. Tri-blends are the most expensive option so it is definitely important to know your audience before making this sort of investment.
After considering all of the different components to choosing the best blank tee, your choices should be narrowed down considerably. The next step is to contact vendors who sell the shirts you are interested in and purchase samples. Once you receive your samples, you will be able to compare the different options right in front of you so that you can choose the ultimate blank shirt to represent your brand.Continue reading
The T-Shirt business can be highly profitable, especially after you get the hang of it. A huge aspect of the game that will affect your odds of making a good profit is how you price your products. This is one of the most exciting, yet nerve wrecking, aspect of the business. It is both an art and a science that requires a little bit of intuition and experimentation with your brand to decide how you want it to feel and be perceived.
Deciding on the perfect price can be tricky, but having a strong business plan makes the decision easier. Your pricing among other things directly affects your revenues and profits, which are the deciding factors between a successful business and an unsuccessful one.
Pricing your products can be a balancing act. Pricing your products low may result in a lot of sales, but could possibly not be making you any profits. While pricing your products high can result in fewer sales, but for a higher profit. It is also important to look at your target market and their demographics. Ultimately, you’ll have to decide whether you want higher prices and lower volume sold or lower priced products and higher volumes sold, and which direction will enable you to achieve the greatest profit.
When looking at the T-shirt industry, there are common trends among prices. Here’s a look at some of the most common tee price ranges:
$10-$15: Brands that are selling at these prices have usually been in business for quite some time and can afford larger bulk orders, allowing them to sell their shirts at a much lower price while still making a profit. Others in this price range include new brands who plan on marketing “cheap shirts”.
$16-$24: This range covers the “unofficial average price” for the majority of tees out there. This price range includes new and old brands. With this price range, there is huge potential for great profit margins in you can place bulk orders, while still a good enough profit margin when making smaller wholesale orders.
$25-$30: Brands who price their tees in this range usually present themselves as higher quality or offer more intricate designs with multiple mediums. Many streetwear labels are priced in this range.
$31-$60: Tees priced in this range are often only accomplished by upscale labels. These prices are associated with luxury, affluence and generally more complex production processes.
The simplest formula to calculate a general retail price for your product is using keystone pricing. It is an easy rule of thumb that states you double the production cost to obtain the wholesale price, and then double the wholesale price to obtain the retail price, or:
Production Cost X 2 = Wholesale Price
Wholesale Price X 2 = Retail Price
While this is the easiest way to calculate a price and ensure an ample profit margin, there are instances where this method is not the best method to use. It is important to look at other factors and adjust the price accordingly to fit your market.
Another strategy in pricing your product is psychological pricing. Studies have shown that when customers spend money, they are actually experiencing a loss or pain. However, if you help minimize this pain experienced, it’s possible to increase the likelihood of a customer making a purchase.
Traditionally, businesses will do this by ending the price with an odd number like 5, 7 or 9. For example $12.99 or $19. By doing this, you are tapping into the irrational part of a person’s brain and triggering impulse purchasing through the perception of a sale or deal.
Perhaps the best pricing strategy of all is to research the t-shirt prices of your competitors. You will want to try and keep your pricing in the same range as brands in the same niche as yours. You can price below or above the competition with varying results as well.
Pricing below your competitors can certainly lure them to your products over theirs. This strategy can be highly effective, especially when you can negotiate with your supplies for lower production costs and actively promote other products as well. However, this tactic can be difficult to sustain for smaller businesses due to lower profit margins. In addition, it is completely possible to gain the edge over your competition by pricing higher! By doing this, you are branding yourself as more luxurious, prestigious and exclusive. This “halo effect” can be a positive pricing strategy by giving your customers the perception that your products are better. However, this strategy can be difficult effectively manage in price-sensitive locations and demographics, especially when there are several other options to purchase similar pricing.
As you can see there is never a “one size fits all” approach to pricing. It is not as simple as black and white. It is a constantly changing force with several factors affecting whether it will go up or down. These are just a few options to consider when deciding what will ultimately work for your business. These pricing strategies will give you a starting point to decide what price fits your particular brand and situation, while ensuring a healthy profit margin.
Today, we’re opening up our new training class and have setup payment options to make it affordable for anyone to get into our course to get step-by-step instructions in starting a t-shirt business.
You get access to our training and our staff to post and ask all the questions you want about your business. Click here to get all of the details.