How to determine your profit potential with Fundit
If you haven't heard, earlier this year we launched a Fundit, a new, easier way to make money selling t-shirts online. In this post, we'll outline how profit margins work on Fundit campaigns so that you can make the best decisions for you or your organization while launching a Fundit campaign and maximize your profit.
In this blog post we’ll go through:
1. Understanding your base prices
2. Setting your selling price and determining your profit potential
3. Receiving your profit
Understanding your base prices
The base pricing for your t-shirt will depend on three things: the specific t-shirt you’d like to print on, the number of ink colors in your design, and the number of print locations (front, back, sleeve, etc). Check out the Real Thread products page so you can view different t-shirt types, adjust the number of colors, and get a base t-shirt price in real time. There are no additional fees to use Fundit.
You’ll notice that this number will also vary as the quantity is adjusted. While the minimum is 20 shirts, there are price breaks at 36, 50, 100, 200, 500, 1,000, 2,000 and 5,000.
Let’s look at an example. If your design has one color and you were interested in using the Next Level 3600 t-shirt, your base pricing would be as follows:
20 - $15.35/shirt
36 - $10.51/shirt
50 - $8.18/shirt
100 - $7.19/shirt
200 - $6.25/shirt
500 - $5.89/shirt
Setting your price and determining your profit potential
You can set your selling price to be anything you’d like as long as it’s higher than your base cost (see above) at the 20 shirt minimum*. Your profit would simply be the selling price minus that base price at the quantity that you end up selling. Here’s the previously used example, continued:
Let's assume you chose a selling price of $25 per t-shirt. If you were to sell 27 t-shirts, your base price would be $15.35, making your profit $9.65 per t-shirt, and $260.55 total.
However, if you were to sell 65 t-shirts, your base price would go down to $8.18 per t-shirt, making your profit $16.82 per t-shirt, and $1,093.30 total.
If you'd like a simple formula, just use:
Selling price - base price = total profit per shirt
We often advise thinking about your potential buyers and what they would value while considering a selling price. If you have a strong following of generous supporters who are eager to support you, you may want to try a higher selling price (think $26 - $29). If your goal isn’t so much to make a lot of profit, but rather a way to get a lot of shirts to a lot of people, try something a little lower (maybe $20 - $25). The price that you decide on will not include shipping so keep that in mind. Shipping is an additional $3.95 for the first shirt and $2 for each additional shirt and it covers USPS Priority Mail to anywhere in the U.S.
*If you’d like to make your selling price even lower, there’s a workaround! We can raise your minimum until the corresponding base price is lower than the selling price you’d like to use. Just be sure to think through making that minimum number of sales.
Receiving your profit
When the campaign is over and successful, we’ll tally everything up and start printing your t-shirts! About a week later we will ship the t-shirts to your excited buyers! You'll see the profit from your campaign shortly after via PayPal.
Fundraising doesn’t have to be hard! Fundit allows you to sell t-shirts and earn unlimited profit without any risk or hassle. If you’d like to learn more or start a campaign now, fill out the form here and work with a campaign specialist to launch quickly and easily. Feel free to drop us a line directly by emailing email@example.com!