![How to plan and track the budget of your print-on-demand clothing brand [template]](http://onlineyougrow.com/cdn/shop/articles/cov-budget-4_6d20d772-f57a-4ced-bbd4-8da3d174cd1a.png?v=1715856560&width=1100)
If you don’t plan and track your print-on-demand clothing brand's budget properly, you're setting yourself up for failure.
When we developed our strategy pack for print-on-demand clothing brands, we saw a lot of brand 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 brand's finances around and set you on the path to success!
Get the budget tracker tailored for on-demand brands
Most on-demand brand founders don't know how to plan and track their budget. This spreadsheet will help you.
Example of a full budget for on-demand brands
Here is an example of a (very) detailed budget for a print-on-demand clothing brand, to give you some inspiration
1. Rent and Utilities
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Rent | Lease for office and storage space | $2,000 | $24,000 |
| Electricity | Power consumption for office and equipment | $300 | $3,600 |
| Water | Water usage | $100 | $1,200 |
| Internet & Phone | Internet service and business phone | $150 | $1,800 |
| Waste Removal | Garbage and recycling services | $50 | $600 |
| Insurance | Property and liability insurance | $200 | $2,400 |
2. Salaries & Wages
| Position | Number of Employees | Monthly Cost per Employee | Total Monthly Cost | Annual Cost |
|---|---|---|---|---|
| Designer | 2 | $3,000 | $6,000 | $72,000 |
| Marketing Specialist | 1 | $3,500 | $3,500 | $42,000 |
| Customer Service Rep | 2 | $2,500 | $5,000 | $60,000 |
| Operations Manager | 1 | $4,000 | $4,000 | $48,000 |
| Warehouse Staff | 2 | $2,000 | $4,000 | $48,000 |
3. Production Costs
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Blank Apparel | T-shirts, hoodies, etc. | $5,000 | $60,000 |
| Printing Supplies | Inks, transfer papers, etc. | $1,500 | $18,000 |
| Packaging Materials | Boxes, bags, labels | $500 | $6,000 |
| Shipping Costs | Domestic and international shipping | $2,000 | $24,000 |
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 | $400 | $4,800 |
| Influencer Collaborations | Partnerships with influencers | $1,000 | $12,000 |
| 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 |
| Software Subscriptions | Design and business software | $200 | $2,400 |
| Licenses & Permits | Business licenses, etc. | $100 | $1,200 |
| 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 brands in the world. Replicate them now!
What are the biggest expenses for a print-on-demand clothing brand?
Be mindful of these critical expenses. Here are five major costs every print-on-demand clothing brand owner needs to consider, along with some tips on how to manage them effectively.
- Production costsThese can take up a significant portion of your budget. You're dealing with raw materials, printing technology, and labor. Prices can vary based on the quality of materials and the complexity of designs. To keep these costs in check, focus on bulk ordering, negotiate better rates with suppliers, and minimize waste. It's easy to overspend by opting for premium materials that don’t add enough value or by producing too many items that don’t sell.
- Staffing costsYour 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 and efficiency. You can optimize labor costs by scheduling efficiently, cross-training staff, and monitoring productivity. However, be careful not to underpay or overwork your staff, as this can lead to high turnover and poor quality control.
- Rent and utilities for 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. Overspending often happens when you choose a workspace that's too large or too luxurious for your needs.
- MarketingYou need to promote your brand, but advertising can be expensive, whether it's online ads, social media campaigns, or influencer partnerships. 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 printing machines to office furniture. These are expensive because quality equipment and regular maintenance are crucial for smooth operations and product quality. 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 clothing brand?
Here are practical tips to help you, as a print-on-demand clothing brand owner, optimize your budget and manage expenses more effectively.
| Expense | Tips to Optimize |
|---|---|
| Material Costs | Partner with sustainable fabric suppliers for bulk discounts and eco-friendly options. |
| Labor Costs | Utilize freelance designers and remote workers to reduce overhead costs. |
| Utilities | Invest in energy-efficient printing equipment and LED lighting for your workspace. |
| Marketing | Run social media contests for your clothing brand and collaborate with fashion influencers for organic reach. |
| Packaging | Use eco-friendly, cost-effective 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 machines. |
| Rent/Mortgage | Negotiate lease terms during renewal or consider a co-working space to reduce costs. |
| Insurance | Regularly review insurance policies to ensure they meet current needs and compare rates annually. |
| Inventory Management | Use inventory management software to track stock levels and reduce overproduction. |
| Shipping | Partner with reliable shipping companies for bulk shipping discounts and efficient delivery routes. |
| Website Maintenance | Choose a cost-effective e-commerce platform and regularly update your website to avoid costly issues. |
| Staff Training | Conduct regular in-house training sessions and use free online resources for skill development. |
| Waste Management | Implement a waste tracking system to minimize fabric waste and recycle scraps. |
| Technology | Invest in multi-functional printing machines and utilize design software for efficient production. |
| Office Supplies | Purchase supplies in bulk and go paperless where possible with digital order systems. |
| 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. |
| Customer Service | Use a customer service platform to manage inquiries efficiently and improve customer satisfaction. |
| Software Subscriptions | Regularly review software subscriptions to ensure they are necessary and cost-effective. |
| Product Photography | Invest in a good camera and lighting setup for in-house product photography to save on professional fees. |
| Sample Production | Limit sample production to essential pieces and use digital mockups for initial designs. |
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There are on-demand brands 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 clothing brand
Yes, some expenses for your print-on-demand clothing brand are just unnecessary. They don't contribute to increasing revenue or enhancing customer satisfaction.
| Clothing Brand Expense | Reason It's Useless |
|---|---|
| Luxury Packaging | Overly extravagant packaging doesn't necessarily attract more customers and can be a drain on the budget. |
| Premium Fabric Options | Unless you are targeting a high-end market, most customers are satisfied with mid-range fabric options. |
| Excessive Design Variants | A large number of design variants increases inventory costs and leads to more unsold stock. |
| High-End Printing Equipment | Top-of-the-line printing equipment is not always necessary and can be cost-prohibitive. |
| Traditional Advertising | Traditional paper ads often have a lower return on investment. Don’t include them in the marketing strategy of your clothing brand. |
| Multiple Website Themes | Having various website themes increases costs without adding significant value to the customer experience. |
| Excessive Staff | Overstaffing leads to higher labor costs without necessarily improving service quality. |
| Premium Subscription Services | Expensive subscriptions for design tools or stock images often go unnoticed by customers. |
| Exclusive Fabric Suppliers | Using rare fabric suppliers can inflate costs and complicate supply chains. |
| Costly Office Furniture | High-end office furniture is not always appreciated by customers and can be a significant expense. |
| Custom Printed Tags | Personalized tags are a minor detail that most customers overlook, and they 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 a larger office than needed increases operational costs. |
| Excessive Membership Fees | Paying for multiple industry memberships often yields little benefit. |
| Overly Frequent Rebranding | Constantly updating your brand identity can be costly and disrupt operations. |
| Expensive Photo Shoots | Elaborate photo shoots 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 customers. |
| Excessive Team Meetings | Too many meetings can reduce productivity and increase labor costs. |
| Expensive Website Redesigns | Frequently redesigning your website 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 Event Equipment | Specialized event equipment is often unnecessary and adds to costs without a proportional benefit. |
Stop working with a tight budget for your print-on-demand clothing brand!
Managing a budget for a print-on-demand clothing brand when funds are tight can feel overwhelming. It's like being trapped in a cycle where any unexpected cost can throw your entire operation off balance.
This constant pressure makes it nearly impossible to invest in growth initiatives, leaving you perpetually focused on just staying afloat. It's a life filled with stress and sleepless nights.
Yes, you can continue down this path, scraping together every dollar 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 clothing brands just like yours. Get them now!
Make your print-on-demand clothing brand more profitable
We have studied the strategies of the best on-demand brands in the world. All their tactics are explained in our pack!
