How to make money in screen printing factory
Making money is a very simple matter. To make money, we must understand some data and make the right choice.
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First you need to know that a set of data is the profit of each product, the output per hour and the daily expenses. The relationship between these three data determines whether the business is making or losing.
The profit of a product is the difference between the selling price and the production cost. If a printed T-shirt sells for $8 and its cost is $2, then its profit is $6. Labor costs, management fees, inks, and network cables should all be included in the company's daily expenses.
Take the garment factory as an example, its hourly output is the number of garments produced. Suppose you can print 100 monochrome T-shirts per hour. Each T-shirt is priced at $8 and costs $2. It has a gross profit of $6 before removing operating expenses. That is, the company's gross profit per hour is $600. By the same token, if you print 50 color T-shirts per hour, each T-shirt is priced at $10, then your hourly gross profit is $400. Therefore, in order to make money, we must pay attention to the hourly output and profit of the product, and also timely to the customer.
What is daily expenses?
All costs unrelated to printing are considered daily expenses. Ink, cable, chemicals, emulsions, screens, and equipment wear on average per T-shirt are all expenses. This may be 10 cents or 20 cents, but it is negligible relative to the selling price and cost of the product. So if you focus on and control those important numbers, and don't distract from the insignificant costs, you will definitely make money.
As for which part of the cost to control and which part of the cost to ignore, it depends mainly on what you want to get. In fact, as long as you master the procurement skills, you can reduce the cost of printed matter, which is much more useful than bargaining with suppliers of consumables such as ink.
In fact, ink manufacturers are very familiar with each other, including the other's products and prices, they are competitors. This is the same for emulsions and other consumables. However, some T-shirt vendors may offer free fares to customers, while others will not. A large supplier should have branches throughout the country, so you have to make sure you don't pay too much for the heavy products.
Know your market
Properly managing sales prices gives you more opportunities to increase profits than spending a lot of time on the supply costs of consumables. Not all consumers pay the same price for the same job. High school students or smaller children may spend $16 or more to buy a T-shirt or a hat; their father may be willing to pay $12 for the same product; and their grandparents may only be willing to take out $6 to buy some less fashionable clothes. Therefore, a person's economic source may determine their level of consumption, and the place of residence may also affect the price of the product. For example, the price of a T-shirt in New York City may be more than three times that of Southern California or Miami.
Screen printing companies can set the sales price of products by researching target customers. The easiest way is to understand the purchasing habits of these customers. For example, if a company wants to sell a shirt with the names of all the students, then it can ask some students how much they spent on the clothing last year. Therefore, mining customer procurement information can often bring lucrative returns to the company. In addition, companies can win orders by avoiding quoted prices that are too high or too low. Regardless of whether your price is high or low, customers generally will not choose your plan. On the contrary, if the price you quoted exactly meets the customer's expectations, it doesn't matter whether it is high or low. Shipping methods, colors, sizes, patterns and other issues can be a magic weapon to attract customers.
Computing costs
The daily expenses of an enterprise not only include the cost of supply of the product, but a company's various costs will be involved in order to maintain its normal operation. Such as wages, rent, utilities, advertising, office supplies and taxes. You add up all the project costs except the monthly printed substrate, divided by the working day of the month (20 or 21 days), you can get the daily cost.
Employees should use the work log to record how their daily working hours are spent. The cost of a job includes not only printing, but also plate making, registration, and cleaning of plates. Generally, only the income-generating personnel of the enterprise will be required to record the work log, and the accountant or secretary does not need to remember. By dividing the company's daily expenses by the working hours, you can get the daily expenses per hour.
Itemized overhead
By dividing the company's hourly cost by the number of products produced per hour, you can get the daily expenses for each product. The daily expenses of the product plus the cost of procurement is its total cost. By comparing the cost with the selling price, we can know if the product is making money or losing money. By recording the time spent and the number of products, we can know which products have higher profitability, and products with lower profit margins should also attract the attention of corporate management.
In most screen printing companies, the daily cost of each product is much higher than its supply cost, so more attention should be paid. For example, a worker earns $10 an hour and he can print 100 pieces of clothing, but he adds 20 cents to the total cost of each item at the same time. Therefore, the efficiency of the work of employees is crucial.
To make money, companies must get rid of the effects of the seasons and the weather to ensure that they are profitable every month. Enterprises that make money in the summer and lose money in the winter are obviously not satisfied.
Simple solution
The easiest way to solve the above problem is to make a file with 14 columns like the one used by the accountant. The first column should list all types of customers, which may include T-shirt contractors, baseball teams, restaurants, and organizers of local meetings; the next 12 columns should record sales plans from January to December, last The column is a summary of all items.
As we all know, many orders of the company are received at a certain time of the year, and the number of these items to be printed should be included in the sales plan and total item list of the current month. Maybe some orders are eventually available, and some orders are not in the plan, but at the very least it will ensure that the business is alive and well.
Whether a company makes money or not should be calculated on an hourly basis. If you lose money in the previous hour, you should actively take action to prevent similar situations from happening again. In addition, companies can make money only if they ensure that they have enough orders every month. Once the owner or manager of the company has the data mentioned in the article, they will become more aware when making business decisions. Simple, and the chances of a company's profitability will become even greater.