TeeChip charges its sellers no minimums and no upfront costs. Once your campaign takes off, you earn all the revenue you've collected from your campaign, minus your base cost per garment and processing fees (equal to 7% of the remainder).
Here is how your profit is calculated:
Profit = ( Revenue - Base Cost ) * 93%
Revenue is the sale price times the number of garments sold. This is the total revenue collected from each campaign.
Base costs vary depending on the product, design color count, and number of items sold.
Product for each product style can be viewed during campaign creation. Each item (men's t-shirts, women's t-shirts, mugs, etc.) has different prices.
The number of ink colors used in your design can also affect pricing depending on the number of items sold.
- For campaigns with a low sales count, your campaign will be direct-to-garment (DTG) printed. With DTG printing, color count does not affect your pricing because all DTG printing is full color.
- For campaigns with high sales count, your campaign will be screen printed. With screen printing, every ink color requires the creation of a new screen, which is expensive and time consuming. The more colors you use in a design, the higher the base cost.
Finally, because of reduced production costs, we can offer a lower price per unit when more than one item is ordered within the same campaign. Normally, the 15 and 50 garments sold marks are two big milestones in price drop.
A processing fee of 7% will be charged on the difference between the Base Cost and the Total Revenue. Our philosophy on pricing is to try to always offer "cost plus" pricing -- this means that all prices are designed to accurately reflect our underlying cost structure. Instead of charging a significantly higher base cost across the board like most of our competitors, we've created a more intricate pricing system that has more components, but ends up providing the lowest prices to our sellers.
We have found that by providing the industry's lowest base cost plus 7% processing fees significantly increases our seller's profit margin compared to the traditional all-in pricing.
DTG vs. Screen Printing:
For those of you who are not familiar with garment printing processes, the most popular printing methods are direct-to-garment (DTG) printing and screen printing. Our system automatically optimizes for the most cost efficient method for each campaign.
DTG, also known as direct to garment printing, is the printing of digital images onto a garment using an inkjet printer. DTG printers are very much like your home paper printer in its digital nature, but are especially designed for garments. The benefits of DTG printing are:
- No setup costs
- Allow for small orders to be printed at low prices
- Can print extremely detailed images
- Does not charge by color count, making full color printing affordable
The down side of DTG is that ink used for DTG printing is very expensive. This makes DTG printing more expensive when printing large orders. We use DTG printing for low quantities and full-color designs.
Screen printing has a more expensive and labor-intense setup. However, once a screen printing press has been set up, the per-unit cost of screen printing is much cheaper than that of DTG.
The ink used for screen printing is inexpensive compared to that of DTG. However, each additional ink color requires a new set of screens that has a high starting cost. As a result, we mostly use screen printing for large orders of the same design.
Our system automatically optimizes for the most cost efficient printing method for each campaign. We always prioritize the lowest base cost possible and provide our sellers with the most profit.
2XL, 3XL, and larger sizes are considered "plus sizes". TeeChip charges an additional $2 to $4 per garment for plus sizes, which is passed onto the seller. However, since the garment itself usually costs $2 to $6 more (which is also passed onto the seller), typically plus sizes net a lower profit per garment than S to XL sizes.