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If you don’t plan and track your print-on-demand business budget properly, you're setting yourself up for failure.
When we developed our strategy pack for print-on-demand entrepreneurs, we saw a lot of business owners struggling with finances and planning.
They were disorganized, had no grasp of cash flow, and were drowning in financial troubles despite having substantial sales.
Don’t let this be you—stand out and succeed.
We’ve created a small, free tool to help you get started: our Budget Tracker and Planner. Let’s turn your print-on-demand business's finances around and set you on the path to success!
Get the budget tracker tailored for on-demand businesses
Most on-demand business owners don't know how to plan and track their budget. This spreadsheet will help you.
Example of a full budget for on-demand businesses
Here is an example of a (very) detailed budget for a print-on-demand business, to give you some inspiration
1. Rent and Utilities
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Rent | Lease for office and production space | $3,000 | $36,000 |
| Electricity | Power consumption for printing equipment | $500 | $6,000 |
| Water | Water usage for production | $100 | $1,200 |
| Internet & Phone | Internet service and business phone | $150 | $1,800 |
| Waste Removal | Garbage and recycling services | $100 | $1,200 |
| Insurance | Property and liability insurance | $300 | $3,600 |
2. Salaries & Wages
| Position | Number of Employees | Monthly Cost per Employee | Total Monthly Cost | Annual Cost |
|---|---|---|---|---|
| Graphic Designer | 2 | $3,000 | $6,000 | $72,000 |
| Printer Operator | 2 | $2,500 | $5,000 | $60,000 |
| Customer Service | 2 | $2,000 | $4,000 | $48,000 |
| Manager | 1 | $4,000 | $4,000 | $48,000 |
3. Production Costs
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Printing Supplies | Ink, toner, and other consumables | $2,000 | $24,000 |
| Blank Apparel | T-shirts, hoodies, etc. | $5,000 | $60,000 |
| Packaging Materials | Boxes, envelopes, packing tape | $500 | $6,000 |
| Shipping Costs | Postage and courier services | $1,500 | $18,000 |
| Maintenance Supplies | Cleaning and maintenance for equipment | $200 | $2,400 |
4. Marketing & Advertising
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Online Advertising | Google Ads, Facebook Ads, etc. | $500 | $6,000 |
| Social Media Management | Managing social media accounts | $300 | $3,600 |
| Print Advertising | Flyers, posters, magazine ads | $200 | $2,400 |
| Website Maintenance | Hosting, domain, updates | $100 | $1,200 |
| Email Marketing | Email campaigns and newsletters | $150 | $1,800 |
| Promotional Events | Special events and promotions | $200 | $2,400 |
5. Miscellaneous Expenses
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Equipment Maintenance | Regular maintenance of printing equipment | $300 | $3,600 |
| Office Supplies | Stationery, pens, printer ink, etc. | $100 | $1,200 |
| Licenses & Permits | Business licenses, software licenses, etc. | $100 | $1,200 |
| POS System | Point of Sale software and hardware | $150 | $1,800 |
| Contingency Fund | Emergency repairs and unexpected costs | $500 | $6,000 |
| Staff Training | Training programs and materials | $200 | $2,400 |
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We have studied the strategies of the best on-demand businesses in the world. Replicate them now!
What are the biggest expenses for a print-on-demand business?
Be mindful of these critical expenses. Here are five major costs every print-on-demand business owner needs to consider, along with some tips on how to manage them effectively.
- Printing and material costsThese can consume a significant portion of your budget. You're dealing with various materials like paper, ink, and fabric, and prices can fluctuate based on quality, supplier, and market demand. To keep these costs in check, focus on bulk purchasing, negotiate better rates with suppliers, and minimize waste. It's easy to overspend by opting for premium materials that don’t add enough value to your products.
- Staffing for your businessYour team is essential, but paying for their wages, benefits, and training can be costly. This expense is always high because you need skilled employees to ensure quality production and customer service. You can optimize labor costs by scheduling efficiently, cross-training staff, and monitoring productivity. However, be cautious not to underpay or overwork your staff, as this can lead to high turnover and decreased morale.
- Rent and utilities of your workspacePrime locations come with high rent, but they can attract more business. Utilities like electricity, water, and internet are essential but can add up quickly. To optimize these costs, negotiate favorable lease terms and invest in energy-efficient equipment and lighting. Overspending often happens when you choose a workspace that's too large or too luxurious for your needs.
- MarketingYou need to promote your print-on-demand business, but advertising can be expensive, whether it's online ads, social media campaigns, or traditional media. Optimize this expense by focusing on cost-effective methods like the ones we provide in our guide. Overspending can occur if you invest in flashy campaigns without a clear return on investment.
- Equipment and maintenance costsThis includes everything from printers and heat presses to computers and software. These are expensive because quality equipment and regular maintenance are crucial for smooth operations and customer satisfaction. Optimize by investing in durable, energy-efficient equipment and maintaining it regularly to avoid costly breakdowns. You can overspend by going for the latest high-tech gadgets you don’t really need.
How to spend less with your print-on-demand business?
Here are practical tips to help you, as a print-on-demand business owner, optimize your budget and manage expenses more effectively.
| Expense | Tips to Optimize |
|---|---|
| Printing Costs | Partner with reliable suppliers for bulk discounts on printing materials. |
| Labor Costs | Implement project management software to streamline workflows and reduce overtime. |
| Utilities | Invest in energy-efficient printers and lighting to lower electricity bills. |
| Marketing | Run social media campaigns for your print-on-demand business and collaborate with influencers for free exposure. |
| Packaging | Use cost-effective, eco-friendly packaging and offer discounts for customers who opt for minimal packaging. |
| Equipment Maintenance | Set up a maintenance log for regular checks and servicing of printing equipment. |
| Rent/Mortgage | Negotiate lease terms during renewal or consider moving to a less expensive location. |
| Insurance | Regularly review insurance policies to ensure they meet current needs and compare rates annually. |
| Software Subscriptions | Choose software that offers essential features with flexible pricing plans and integrates with other systems. |
| Staff Training | Conduct regular in-house training sessions and use free online resources to keep staff updated on the latest trends and technologies. |
| Waste Management | Implement a waste tracking system to minimize material waste and recycle excess paper and packaging. |
| Technology | Invest in multi-functional printers and utilize business management software for order processing and customer management. |
| Shipping | Partner with cost-effective shipping services and offer customers multiple shipping options to reduce costs. |
| Licensing and Permits | Stay up-to-date with local regulations to avoid fines and costly renewals. |
| Transportation | Plan delivery routes to maximize efficiency and reduce fuel costs. |
| Office Supplies | Purchase supplies in bulk and go paperless where possible with digital order systems. |
| Inventory Management | Use inventory management software to track stock levels and reduce overstocking. |
| Pest Control | Schedule monthly pest control services and maintain cleanliness standards to prevent infestations. |
| Customer Service | Use a customer relationship management (CRM) system to track customer interactions and improve service quality. |
| Uniforms | Choose durable, easy-to-clean uniforms and offer staff a stipend for maintenance instead of using an external service. |
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There are on-demand businesses that make way more money than you do. We have studied their tactics. Get them now!
Expenses that are just useless for a print-on-demand business
Yes, some expenses for your print-on-demand business are just unnecessary. They don't contribute to increasing revenue or improving customer satisfaction.
| Print-on-Demand Expense | Reason It's Useless |
|---|---|
| High-End Printing Equipment | Top-of-the-line printers are not always necessary and can be cost-prohibitive. Mid-range options often suffice. |
| Premium Packaging | Unless you are targeting a luxury market, most customers are satisfied with standard packaging. |
| Excessive Product Variants | Offering too many product options can complicate inventory management and increase costs. |
| Expensive Graphic Design Software | High-end design software can be overkill. Many affordable or free alternatives are available. |
| Paper Advertising | Traditional paper ads often have a lower return on investment. Focus on digital marketing strategies instead. |
| Multiple Website Themes | Constantly changing website themes can be costly and confusing for customers. |
| Excessive Staff | Overstaffing leads to higher labor costs without necessarily improving service quality. |
| Premium Subscription Services | Expensive subscriptions for stock images or fonts often go unnoticed by customers. |
| Exclusive Materials | Using rare materials can inflate costs and complicate supply chains. |
| Costly Office Furniture | High-end office furniture is not always appreciated by employees and can be a significant expense. |
| Custom Printed Stationery | Personalized stationery is a minor detail that most customers overlook, and it can be expensive. |
| Unnecessary Software | Paying for software with features you don’t use is a waste of resources. |
| Premium Shipping Options | Most customers are content with standard shipping, making expensive shipping options unnecessary. |
| Extra Office Space | Maintaining more office space than needed increases operational costs. |
| Excessive Membership Fees | Paying for multiple industry memberships often yields little benefit. |
| Overly Frequent Website Redesigns | Constantly updating your website can be costly and disrupt operations. |
| Expensive Promotional Items | Elaborate promotional items are often ignored by customers and add to the cost. |
| High-End Office Supplies | Luxury office supplies are prone to damage and expensive to replace, often going unnoticed by employees. |
| Excessive Staff Meetings | Too many meetings can reduce productivity and increase labor costs. |
| Expensive Marketing Materials | Frequently redesigning marketing materials is costly and often unnecessary. |
| Unused Promotional Materials | Ordering more promotional items than needed leads to waste and unnecessary expense. Get our marketing budget planner template. |
| Paid Directory Listings | Many free listing options are available, making paid listings often redundant. |
| High-End Office Equipment | Specialized office equipment is often unnecessary and adds to costs without a proportional benefit. |
Stop working with a tight budget for your print-on-demand business!
Managing a budget for a print-on-demand business when funds are tight can feel overwhelming. It's like being trapped in a cycle where any unexpected cost can throw you off balance.
This constant pressure makes it nearly impossible to invest in growth opportunities, leaving you always scrambling to cover expenses. It's a life filled with stress and sleepless nights.
Yes, you can continue down this path, pinching pennies and barely making ends meet. But there's another part of the equation you might be overlooking. Instead of just trying to cut costs, you can focus on growing your revenue. More income means more breathing room and more resources to invest back into your business.
And no, you don't necessarily have to spend money to grow. There are plenty of zero-cost initiatives and strategies that can help you increase your revenue by 10%, 20%, or more. We've detailed all of these strategies in our guides, after studying dozens of print-on-demand businesses just like yours. Get them now!
Make your print-on-demand business more profitable
We have studied the strategies of the best on-demand businesses in the world. All their tactics are explained in our pack!
