The business of heat applied graphics or heat printing can be lucrative. Start ups are naturally drawn to this sector of the decorated apparel industry due to the low cost of investment and the ‘ease’ of operation. While it can typically cost upwards of $20,000 to get into embroidery or screen printing, the heat printing market can be entered for as little as $3000.It is easy to think of the possibilities with heat printing - it is a craft that all can do with some time and effort and many can master or even become experts. But the question is will all this knowledge and expertise build a thriving business? Or for those existing businesses will it provide the growth that you have been looking for?
Well that’s a great question - one that I don’t have the magical answer to
However, I have had the opportunity to see many start ups succeed and many more current businesses grow by adding services like heat printing. On the contrary, I have also sold equipment to many businesses that are no longer open today - I’d like to think that they built the business and sold it, but studies show that there is a certain percentage of businesses who will not make it. Let’s talk about how you can stay out of that percentage and make your heat applied graphics business a success.
Here are 5 warnings before entering the business:
Warning 1: Not having a pricing strategy is a losing strategy.
Pricing product properly is essential. Develop a pricing strategy that you can reference when quoting a job. Determine the cost of materials for the different heat applied technologies that you are representing, the cost of your garment and also the price of labor. Take these costs apply your mark up and develop a laminated spreadsheet that you can reference when speaking to a customer. There are many pricing strategies for heat applied graphics - some company charge by the size of design, some charge by the letter, others charge by color, and many charge by number of locations decorated - the key is to determine a method to calculate prices for your customer quickly and effectively. Often, a reference sheet will help to eliminate the thought in a customers mind that the prices are negotiable and you will be able to establish a higher profit margin.
Warning 2: Don’t Sell Mulch As Stone.
Being a fairly new homeowner, I am in the process of planning some landscaping. When considering what to place on the ground around shrubs I am between 2 choices: mulch or a variety of stone. I just visited the local store and and received a quote - I walked in with my budget and exactly what I had in mind. I walked out extremely happy with a great plan that I am going to put it into action this weekend - I chose mulch because it fit my budget. During the sales process, the landscape professional explained the performance differences between mulch and stone and I decided that mulch was a product that fit my budget. I walked out of the store, knowing that the mulch would not last near as long, but it will look great for a couple years and then I’ll need to replace it. The same concept holds true for heat applied graphics - you are going to be selling a variety of products within the heat applied graphics sector that can meet the customer needs. For instance, transfer paper isn’t going to last as long as cad-cut or plastisol transfers. This is why it is wise to educate your customer on the differences in results thereby managing expectations. After all, if I was expecting the mulch to last as long as the rock - I would be awfully disappointed in a couple years and probably wouldn’t return for future business.
Tip: Consider having laundered samples available to show durability or a full color chart
Warning 3: Sitting in Your Bulldozer Won’t Move Dirt.
This truthful statement can be applied to a lot of start up businesses. Put yourself in this situation - I just invested in a top of the line bulldozer. I researched bulldozers for months maybe even an entire year. I brought it home about 2 months ago. My wife gets mad at me because all I do on the weekend is sit in my bulldozer with the operators manual and play with the controls. I now think I know every function of the dozer and can do everything that it is capable of. I even used it in the backyard to test it out. I know a lot of people that could utilize my services with this equipment, but I haven’t really had time to market my services or even make a plan to sell jobs. Now, I have been making payments on this equipment for months and I even started researching the next model that does some extra things that my dozer won’t do. REALITY - I don’t own a bulldozer - nor do I want one, however do not let this “gadget trap” take control of your business. Taking time to learn a heat press, a vinyl cutter, a Versacamm or a sublimation system is one thing - but keep in mind all of the operational knowledge won’t move dirt (or product out of your doors). Set aside a certain amount of preparation time for marketing and sales - selling your service to clients will allow you time to put your equipment to work and this balance leads to a longer lifespan for your business. This point is especially important if you are a home based 1 or 2 person shop.
Warning 4: A Painter Who Doesn’t Know His Canvas is No Painter At All.
While your customer might be mildy impressed with your ability to spew off the different brands of cadcut films - chances are that they don’t really care. Think about it, would you care about what brand of paint/ink was used on a painting that you want to buy for your living room? Maybe a little, but odds are you care more about what the paint is on - is it a canvas or paper, what type of frame does it have, are there different sizes? This same principle applies to the textiles that you are working with. Know your apparel options, educate on the differences, recommend sizing, show color choices - not only will this help to ensure the sale it could help to increase the dollar figure of each sale. Knowing about the important performance factors of athletic apparel can raise the standard cotton t-shirt sale into a moisture wicking polyester garment. Recommending options and being the expert also helps to eliminate competitive factors such as price.
Warning 5: Bad Packaging = Bad Results.
Walk through a grocery store - the least attractive packages are often fully stocked - they are slow movers. Don’t allow your business’ brand to be a slow mover. Focus on the details: including your business card, your sales proposals/quote forms, your invoices, envelopes, and boxes that you deliver the finished product in. Also, consider care/ laundering instructions to be an important part. And don’t stop there - dress for success as well. If you are making sales calls to local businesses, teams, schools etc. - dress like a successful entreprenuer - after all that is what you will be.
Thanks for reading - for more articles, videos and tips to your inbox - SUBSCRIBE TO MY BLOG.