Need Advice on Starting T-shirt Side Business

Xeon_Ond

Hi all,

I'm currently a full-time graphic designer, but would like to increase my monthly earnings by starting a side small business selling t-shirts with my art on it (I can draw).
Basically, the t-shirts will have a certain consistent style of art on them, all sold under a funky brand name.

The execution and order fulfillment part is not the main issue, marketing and getting the product out is.

Because I've no experience or contacts or knowledge in this apparel industry whatsoever, is it better if I "deposit" my t-shirts with these small apparel start-ups and I give them a 30 / 70% commission (70% for me) for every of mine item sold?

please advise. Tks!
Xeon

meinteel

Well, its possible to place your stuff at other's shop and hopefully it will sell. However, there will be lots of complications that you will learn soon enough.

We don't call it "deposit", we call it consignment or consigned goods. Consigned goods basically mean that you leave the goods with the retailer. At the end of the agreed period, usually 1-3months later, you will approach them to collect the money for whatever is sold. The retailer can at that point of time insist that you exchange/take-back certain stocks for others. There is 1 key point to know. In most circumstances for goods that are consigned, the retailer is not responsible for the condition of the goods not sold. Customers may have tried the clothes causing it to be slightly stretched or the colours may start to change due to the sun etc but the retailer is not liable to pay you for them. This is especially for mall shops due to the high rental costs & very limited spaces. Mostly would just insist that you take-back these spoilt products.

Next, I'm not sure where you get the idea of a 30-70. Personally, I feel that the commission is too low especially for t-shirts. The cheaper the product, the higher the commission (profit margin) is expected. Prepare to offer at least 40-50% commission for the t-shirts. Why? Most small shops nowadays are importing from China/Thailand/Taiwan themselves & profit margin is between 40-60%. There is no reason for them to take up a smaller profit margin from you since your product is not considered a saleable brand. You will also need to prepare to offer the retailers samples. Designs + shirt materials.

There will also be endless questions. Does the colour run, does the size change after washing, how often will new designs come out, what is the credit terms, what to do if customer comes back with shirts that shrunk in the wash, or have colour faded etc.

There are tons of obstacles getting to retailers with shops. Of course, it is not impossible. There have been successful cases and so you can try. 2 advise. Be well-prepared for questions & have very thick skin. Just keep boot-licking & promoting no matter how to demean your company & products. Oh yes, having connections (say, your friend's uncle is a business partner with the owner etc) will bring you a long way.

Xeon_Ond

Hi Meinteel,

Thanks for your advice! So, for my particular case, is it better if I take the online route and sell through blogshops and give them a commission etc.?

I'm thinking of specializing in kids t-shirts and merchandise but not sure if this will work well through the above mentioned method.

Tks for any advice!
Xeon

meinteel

The method you mentioned will take more time and effort on your part. If successful, sales will grow very quickly thus supplying you with more cash to build up the brand.

It is probably easier for you to convince blogshop owners to feature your products since they will practically have no cost. They would however, most likely ask for pictures of the t-shirts. Badly taken pictures won't sell your t-shirts but professional ones with models are costly. It will be a trade-off that you must consider carefully.

Comparatively, retailers would be able to sell your products at a higher price & much faster than most blogshops could thus compensating for the lower margins.

With a long-term view in mind, I (personally) would rather set-up a facebook page to sell the products while trying to push to retailers. You might also want to consider leasing pushcarts at various malls and hiring part-timers to mend it. Generally, it requires much more financial commitment but it is still an affordable sum to come up with. For the first couple of months, things will be more hard-going but will smoothen out a lot after the that. Furthermore, your branding will have a stronger chance in the future to grow.

Xeon_Ond

Thanks Meinteel!

I think maybe I'll go the blogshop route; the Facebook page route is good, but problem is: if my boss or colleagues know I'm doing part-time side business (since there's no way to conceal your identity via Facebook), I will get into trouble with my boss LOL

Leasing pushcarts require a lot of money which I'm don't have at the moment. But will definitely expand to this method in future when things really take off.

I was looking at this: http://www.orangeboxasia.net/business.html
Is it worth it to pay $400 for what they offer?

Also, I'm thinking of targeting the kids (specially, little girls) market since I noticed that the newer generation of local parents seems to be very generous with their $ when they buy things for their kids. Is it true? LOL

meinteel

For facebook page, nobody will know who is the admin so it's alright.

Leasing of pushcarts will indeed require quite a bit but it enables you to expose your brand & open up sales much faster.

For orangeboxasia, I can't comment. Personally I won't buy a sales kit. Furthermore, they don't provide pricing for their services. You might want to shop around a bit more. Most university halls do get outside vendors to print shirts & jerseys. Shirts (dry-fit etc) usually range between $6-$10 per piece, with a max of 2-3 colours in the design.

Parents are quite generous with certain expenditure for children but it depends on the group you are targeting too. For little girls, they tend to get cute dresses, jackets but those costs about $20 for good quality ones. T-shirts probably sell cheaper since less skills/materials required for its making. So long the design is good, quality is okay, parents will generally buy.

Xeon_Ond

Hi Meinteel, you've enlightened me once more!

One last question for now: Once my website and designs are up, is it advisable to search for a business partner? Like a stay-at-home mom or something who has lots of free time compared to a full-time employee like me? Basically, this partner will do the sales / PR / marketing while I focus on the designs and other non-marketing operations aspect. Then we split the earnings like 50-50? LOL

Thanks!
Xeon

meinteel

As for business partner, it really depends on yourself. It might be good to have a partner who is capable of doing marketing & sales since you probably won't have much time to commit to it.

Liyawn

Actually with your expertise, you can check out zazzle.com, cafepress.com, spreadshirt.com and printfection.com for online distribution. You only need to do the designing.

Xeon_Ond

Hi Liyawn,

I've tried those many years ago, but they just didn't work out due to very high base costs and you're lost in the millions of designs there. Add the shipping in, and you're paying lots of $$$ for a single t-shirt. This time I prefer to focus on local market first.

So, I guess the next step now is to start the designs and website creation, then start finding partners and thinking of marketing? Or marketing / partner first then designs?

Thanks!
Xeon