Are you spending too much on buying t-shirt blanks and printing your designs? If so, read on because this post is for you.

Quite a few of my private coaching clients and entrepreneurs who have purchased the T-shirt Profits ebook have emailed me recently to ask if the price that they are paying to purchase and print their t-shirts is too high. They are paying $10, $12, $14, even $17 for a t-shirt (the blank tee plus the cost of printing). And they want to sell their tees for $20. So that doesn’t leave much room for profit, let alone going into the wholesale business and selling your shirts to stores.

It’s true that some t-shirt blanks are not cheap, especially if you are looking for an eco-friendly material or a special type of tee. But, on average, you should be paying $3-$7 for a good quality shirt (closer to the $3 side for a white men’s tees and closer to the $7 for an eco-friendly or a special fabric tee). However, where this gets expensive is when you purchase your t-shirt blanks from a printer or a distributor, instead of purchasing directly from the manufacturer.

Printers and distributors need to make money too, so they usually purchase the tees from the manufacturer and mark them up a bit so they can make a profit as well. (I’m not saying that you shouldn’t be purchasing your blanks from your printer or a distributor, because there are definitely some cases in which that makes sense to do). But if you want to keep your costs down, you should be purchasing your t-shirt blanks directly from the manufacturer.

Some manufacturers work only with distributors, in which case you need to purchase your blank tees directly from the distributor. Bella, for example, offers wholesale pricing only through their distributors (http://www.bella.com/distributors.php), so you are not able to purchase directly from them. Anvil works the same way (http://www.anvilknitwear.com/h/US-Distributors). Alternative Apparel, for example, sells wholesale through their own website, but also works with distributors who typically charge $2-$4 more for the same tee. So if you are using tees from Alternative Apparel for your line, you will get the best price if you purchase directly from Alternative Apparel, rather than from your printer or one of their distributors.

However, even if a company has many distributors, not all of them will sell the same tee for the same price. You should sign up for a wholesale account with a few distributors (maybe 4-6) and see which ones are offering the best price on the blank tees that you are interested in. That way you can minimize your costs and maximize your profits.

And you can also save money on printing. Before you decide to go with a specific printer, make sure to get quotes from at least 5-7 other printers and see which ones are offering the best prices (but make sure their client references check out and that they offer great service – sometimes you do get what you pay for and a cheaper printing cost may mean that the printer is skimping on customer service or their quality is not as great). And the more tees you print (for the same design), the lower the cost per tee. Ask your printer to give you quotes for different quantity breakdowns.

Keep in mind that the fewer print locations and colors you have in your design, the less expensive the printing costs will be. So if you want to sell your tees for $20 and you want to print in four locations and have three colors for each location, that can really add up and it’s not realistic to sell your tees at $20 (especially if you want to sell your tees at wholesale cost).

Every dollar you can save on either printing, shipping or the actual tee itself, will affect your profit margin and your company. So gets lots of quotes from different manufacturers, printers and distributors before you decide on which one makes the most sense for your business.

Are you running your t-shirt company and want to increase your sales? Drive more traffic to your website? Sell your shirts to stores? Then read on about 10 tips for setting up and running a successful shirt company.

1. Come up with a marketable idea

After you’ve decided that you want to start you own t-shirt business, start brainstorming about possible ideas for your t-shirts. Write down as many ideas as you can. Some things to think about are: do you want text shirts or graphic shirts or both? Do you want to make shirts for women, men, babies? What is hot right now and what is everyone wearing? Do you want color shirts, or mostly black or white shirts? The more questions you ask yourself, the more ideas you will come up with during your brainstorming session.

2. Determine your target market

After you’ve brainstormed your ideas, it’s time to start thinking about your target market. Who do you want to sell your t-shirts to? Be as specific as possible. “Women between the ages of 18-45” is not a specific target market. You must dig deeper and find your niche. Some examples of target markets are skateboarders, women who have toddler children, grandmas or grandpas, Las Vegas tourists between the ages of 25-45, men who play golf, etc. The possibilities are endless and the more specific you can get with your niche market, the easier it will be to sell your shirts and come up with specific marketing plans.

3. Set up your business structure

Most t-shirt entrepreneurs start out as a sole proprietor, but as their company and sales grow, they change their company structure to an LLC, LLP or corporation. Think about how big you want your business to be and then consult with a business or legal professional on what the ideal business structure would be for you. Another thing you might want to consider is what type of sales you want to focus on – retail (selling directly to consumers), wholesale (selling to other stores) or both. This might help you decide what business structure is best for you.

4. Manufacturing your t-shirts

Many t-shirt entrepreneurs start out by purchasing t-shirt ‘blanks’ from other manufacturers. This allows them to offer a variety of sizes, colors and styles, but keep costs to a minimum. Many t-shirt blank manufacturers have really low minimums, so you can test a few different styles to see what will sell best for your niche market. Another option is to have a t-shirt manufacturer make shirts according to your specifications, but they often require you to purchase thousands of shirts at a time, which might not be feasible when you first start your shirt business. If you search for “shirt blanks” or “shirt manufacturers” you will be able to find a plethora of resources online.

5. Printing your t-shirts

Some people get in the t-shirt business because they love to screenprint and they have all the necessary equipment to print their own t-shirts. If that’s not you, then search the Internet for screenprinters in your local area and meet with them to discuss your needs. Don’t be afraid to interview a few screenprinters and work with the one who is a good fit for you.

6. Pricing your t-shirts

The price of your t-shirts depends on what it costs you to make each t-shirt. When calculating the price, make sure to include the actual price of the shirt, screenprinting costs, shipping costs, costs of hangtags and labels and other costs such as marketing, storage/warehousing and labor. Also consider if you plan on selling retail or wholesale or both. If you are not selling your shirts to other stores or boutiques, then you might be able to price them lower since you are cutting out the middleman. Set a price that allows you to cover all the costs and make a profit as well. And don’t be afraid to price your shirts higher if your costs justify it.

7. Storing and shipping your t-shirts

Many shirt entrepreneurs start out by storing their shirts in their garage, basement or home office in bins or on shelves. Think about how much time and space you have and what you want to focus your efforts on. Do you enjoy packing and shipping and do you have the time to do it? If so, starting in your home is a good idea. But if you hate the idea of going to the post office every day or if you don’t have space in your house to store your shirts, then consider hiring a fulfillment house, which will do all the storage, packing and shipping for you for a fee.

8. Selling your t-shirts retail

If you want to sell your shirts directly to the consumer, it’s probably a good idea to set up your own website and print some postcards so you can promote your t-shirt business. Allow people to purchase items directly from your website and make sure you have good photography that reflects the quality of your t-shirts. You might also want to consider selling your shirts at local events such as flea markets or street fairs or fundraising events.

9. Selling your t-shirts wholesale

You can also sell your shirts to other stores that target your niche market. These can include local boutiques, gift stores, t-shirt shops and even larger retail chain stores. You can call the store directly and ask to speak to the buyer. Many stores like supporting businesses in their area, so it’s best to start out with stores in your town or city first.

10. Marketing and promoting your t-shirts online and offline

Just because you have a website doesn’t mean that swarms of people will know about it or even find it online. It’s best to work with your web designer to make your website search engine friendly so people can easily find you. Contact other businesses and ask to exchange links, post comments on other people’s blogs (with a link back to your online store) and partner with websites that target your niche market but don’t compete with you.

And lastly, wear your t-shirts as often as you can! This is often of the best and most effective method to get your shirts seen. Tell everybody you know about your new business venture and ask them to tell their friends. Word of mouth is very powerful.