When sourcing blank t-shirts for a new business, it’s easy to focus on the unit cost per shirt and overlook the hidden expenses that can eat into your profit margins. Here are some commonly missed hidden costs:

1. Shipping & Freight Costs

• Bulk orders can be heavy, leading to high shipping fees.
• Expedited shipping for rush orders adds a premium.
• International sourcing can involve customs duties, taxes, and import fees.

2. Minimum Order Quantities (MOQs)

• Many suppliers require a minimum purchase amount, which can tie up cash flow.
• Ordering more than needed to meet MOQs can result in excess inventory.

3. Quality Control & Defects

• Some t-shirts may arrive defective (poor stitching, misaligned seams, etc.), requiring replacements or refunds.
• Quality inconsistencies between batches can lead to customer dissatisfaction and returns.

4. Brand Labeling & Customization

• Removing manufacturer tags and adding custom labels costs extra.
• Printing or embroidery services often charge setup fees per design.

5. Storage & Warehousing

• If ordering in bulk, you may need space to store inventory.
• Warehousing costs can include rent, security, and climate control for fabric care.

6. Returns & Refunds

• Handling return requests can be costly in terms of restocking fees and shipping.
• Unsellable returns result in lost revenue.

7. Fabric Shrinkage & Durability Issues

• Low-quality shirts may shrink after washing, leading to customer complaints.
• Softer, higher-quality fabrics may be more expensive but reduce long-term return rates.

8. Exchange Rate Fluctuations

• If sourcing internationally, currency exchange rates can affect pricing.
• Payment processing fees for international transactions add another layer of cost.

9. Production Delays & Backorders

• Manufacturing delays can disrupt order fulfillment, leading to lost sales.
• Seasonal demand spikes can cause shortages, forcing last-minute purchases at higher rates.

10. Marketing & Sample Testing

• Before selling, you’ll likely need to order samples, which often aren’t free.
• Testing different brands and fits for quality control adds up over time.

Being aware of these hidden costs allows new businesses to set realistic pricing and avoid nasty surprises when scaling up. Have you run into any unexpected costs while sourcing?