Profit margin on fundraisers

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Profit margin on fundraisers

PostPosted by VinylArtStudio2 » Tue Nov 13, 2012 9:48 pm

Question for everyone about profit margin. Especially those that do fundraisers. Working on my first fundraiser. Working up the numbers for several designs to get the ball rolling. I have read alot about what everyone does for their fundraisers. Most seem to do 10%. But I am wondering about actual dollars rather than the %.

I seem to have figred out my formula for regular pricing on what I offer. And when figuring 10% on a shirt, it doesn't seem like a good profit margin for the organization. I would think they would want more than that and would suggest they raise the price to give them a better profit margin.

I realize everyone is different. But is it reasonable and realistic for me to expect to make $15 per shirt. Does that sound low? high? I have been plugging the numbers into the TRW calculator. But to be honest, I haven't done enough shirts to know what a reasonable amount of time to make one would be. By the time you figure the time to cut your transfer tape, round up the supplies and tools, make the transfer, press the shirt, bag the shirt, etc. I am guessing 15 to 20 mins. But that is just a guess. If it is 15 mins, profit would be $60 an hour. At 20 mins, profit would be $45 an hour. Do I sound like I am in the ball park? or way off base?

Just hoping to pick everyone's brain...
thanks
Cindy
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Re: Profit margin on fundraisers

PostPosted by 2STRONG » Wed Nov 14, 2012 1:42 am

I WOULD ALSO LIKE TO KNOW what others do as well. personally i think $15 profit from each shirt would be good. i would be happy with that
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Re: Profit margin on fundraisers

PostPosted by redheadedmonkeys » Wed Nov 14, 2012 7:57 pm

$15 is a bit steep for me, esp. on big orders. You have to remember that when you are working in bulk everything takes less time. It may take 20 minutes to do one shirt because you have to round up supplies, etc. Heck, setup and teardown takes as much time as actually making the shirt. Doing 10 shirts isn't going to take 200 minutes because you gather up supplies 1 time for all 10, set up the transfer on your workstation 1 time, bottle the stones back up one time. Everything takes less time when you do several at once. I even pre-cut transfer tape in the sizes I use the most
Liz Woodrow
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Re: Profit margin on fundraisers

PostPosted by VinylArtStudio2 » Wed Nov 14, 2012 10:41 pm

Thanks Liz. Was hoping to hear from you. I know you have been doing a lot with groups.

Would it be smarter to offer graduated pricing? Similar to what Matt does with decals. Right now we have no idea how many they will sell.

Ok. Will back to the number crunching.
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Re: Profit margin on fundraisers

PostPosted by redheadedmonkeys » Thu Nov 15, 2012 8:47 am

That is exactly what I do. When they ask for a price I give them a small chart that shows how the price goes down as the number they sell goes up. I learned the hard way that customers will ask for a price on 600 shirts, then sell 300 and expect the price to be the same. I have a pretty set discount schedule.
Liz Woodrow
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Re: Profit margin on fundraisers

PostPosted by Ajp » Wed May 13, 2015 12:04 pm

Hey Liz, would it be possible to see the small chart you are talking about?
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