Episode 152 – How To Make $75K In Custom Tees
Why $75,000?Because according to the article "how much is enough" and the Princeton study they reference there, for most people $75K/year is enough to be worry free. They surveyed people at different income levels and by and large, the people that made less reported to be less happy and happiness didn't increase much at larger amounts.Depending on almost everything of course - location, family size, etc.And the $75K is also right in the middle of what is typically considered "middle class" in America.These articles are talking about top line income - and we'll do that too, but we'll also talk about how much PROFIT you'll make at various sales levels.Because I think that knowing these numbers will help you figure out your own.So - if you buy into all this - what do you have to do in the customization business to make $75K?First - we'll run a few scenarios for you - having to do with sale price, cost of goods sold, et.Most of our digital t-shirt makers make $12 or MORE for every shirt they sell. Here's how the numbers work to get you to $75,000 per year!Average profit per shirt $12.00$75,000/$12 = 6,250 shirts365 Days/6,250 = 17.12 shirts per dayor 2 week vacation and 5 day work week = 25 Shirts a dayIs making 25 shirts a day realistic?Doing it alone, it's realistic to break up 2 shirts a day into this:Production - 2 hoursSales - 2 hoursMarketing - 2 hoursPaperwork - 2 hoursHow do you get to 25 shirts a day?Marketing:Get your google / facebook / bing info set up for searchesJoin groups / clubsUp-sell customersSell through ebay / etsy (if you have good ideas)Be sure you have some niche markets to sell to90% of our custom t-shirt business customers make ALL their money through word of mouthAsk for referralsSales:Get in the car with samplesMake phone callsTalk to people / socializeAsk for businessBe sure people know what you doWear what you doPaperwork:Build into business costs to have a CPALearn how to do it yourself (if you are good at that thing)Don't let it pile upDo things legally (if not sure hire someone - build that into cost of business)Know your numbers!Production:Make your room work for youPractice makes perfectDon't give upStop chasing crazy ideas and focus on a few things you can do wellUp-sell more prints on a shirt or item, more money... less garmentsSell things that are easy to do. e.g. can coolers, mugs vs a hat with 4 locations of logos for $12Remember to get to 75k... you have to do these simple things:Leverage YOUR social network to build a business that YOU control.Work hard on sales and marketing... don't just sit thereGet production down to a scienceDo the paperwork right and know your numbers