Understanding the unit economics of a T-shirt is the most critical part of your business plan. If you don't know your margins, you can't scale your ads.
| Process | Setup Cost | Unit Cost (Avg) | Best For |
|---|---|---|---|
| Screen Printing | High (Screens/Positives) | ₹40 - ₹80 | Bulk Orders (100+) |
| DTG (Direct to Garment) | Zero | ₹150 - ₹250 | Premium Single Prints |
| DTF (Direct to Film) | Zero | ₹60 - ₹120 | POD & Small Brand Launch |
Many beginners forget to account for **Marketing Cost per Acquisition (CPA)** and **Return to Origin (RTO)**. In India, Cash on Delivery (COD) typically has an RTO rate of 15-25%. You must factor in the reverse shipping cost when calculating your final T-shirt price.
Base Cost (₹300) + Ad Spend (₹200) + Packaging/RTO Buffer (₹50) = ₹550 Total Expense.
**Selling Price: ₹899**
**Net Profit: ₹349 per T-shirt**
DTG requires expensive ink and pre-treatment machines. DTF uses specialized film and powder which is more cost-effective for medium-sized prints.
Most suppliers, including Merch Factory, list prices excluding GST. You must add 5% GST on apparel when calculating your margins.
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