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Help and Education
Vinyl Cutter Investment Strategies

If you’ve been considering purchasing a vinyl cutter to increase sales and offer your customers a faster turnaround, here are a couple of example strategies to help pay off your investment and increase your profits.

 

Strategy #1 – Athletic Team Decoration

If you’re looking to be a team dealer and selling a lot of team wear, then you’ll see an extremely fast return on your investment.

Wholesale Jersey Cost $12.00
Heat Applied Material (name, number, team) $2.00
Labor ($20.00 per hour/60 minutes x 3 minutes per shirt) $1.00
Total Cost per Garment $15.00
Selling Price $30.00
Less Cost $15.00
Profit $15.00

The investment for a vinyl cutter is approximately $1,695.00. With a profit of $15.00 per jersey, it will take 113 jerseys to pay off the cutter.

Strategy #2 – Retail T-Shirt Business

Creating customer shirts with a variety of graphics or sayings on demand will have you paying off your investment in no time.

Wholesale T-Shirt Cost $3.00
Heat Applied Design (one color average cost) $0.67
Labor ($20.00 per hour/60 minutes x 5 minutes per shirt) $1.67
Total Cost per Garment $5.34
Selling Price $22.00
Less Cost $5.34
Profit $16.66

The investment for a vinyl cutter is approximately $1,695.00. With a profit of $16.66 per shirt, it will take 102 shirts to pay off the cutter.

Strategy #3 – Embroidery Business Add on Sales

Embroidery is a popular choice in decorating corporate attire, but it is more expensive than heat applied graphics. Adding a cutter allows you to offer another service to your customers at a lower cost and with a quicker turnaround.

Wholesale Polo Shirt Cost $9.30
Heat Applied Design (left chest logo) $0.30
Labor ($20.00 per hour/60 minutes x 3 minutes per shirt) $1.00
Total Cost per Garment $9.30
Selling Price $18.00
Less Cost $9.30
Profit $8.70

The investment for a vinyl cutter is approximately $1,695.00. With a profit of $8.70 per shirt, it will take 195 shirts to pay off the cutter.