Updated: Aug 4, 2021
If you're looking to start (or already own) a t-shirt business you need to make sure you prioritize your finances. Key variables that are often overlooked but play a very important role in calculating profit margin include: returns, credit card fees, and packaging costs.
Get the File:
📁Download this free resource to begin! Profit Margin Calculator Excel File
Fill out the spreadsheet.
Add your assumptions to the green cells (first two sections). The items in each category are as follows:
1) Cost of Goods Sold Variables
Sale price of one t-shirt
Cost of one t-shirt
Cost to ship one t-shirt
Cost of packaging
Credit Card fees
2) Monthly Variables
Number of t-shirts you will sell monthly
Number of refunds & returns a month
Website hosting fee monthly
Monthly Profit Projection
Yearly Profit Projection
With this information, you can learn how costs will affect your business model. This will, in turn, allow you to make more informed business decisions. Starting a t-shirt business can be tough but with the appropriate tools, you can see great returns. Taking the right steps will eventually allow you to scale your business!