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If the pandemic taught us anything, it’s that diversification and flexibility are key operational functions to remain in business. In recent years, apparel decorators have begun to consider the idea of convergent (or adding new products and services). It’s clear that to survive today’s consumer buying habits, decorators need to offer more than T-shirts. There is a correct way to expand and a incorrect way.
The Right Way
“Diversification is important,” believes Dan Neto, president of Canada-based Print Geek. “By diversifying, [apparel decorators] can add more value to their customers, acquire new customers, and become that one-stop shop that clients may be looking for.”
The decorators will also position themselves for greater control. “Having [a process] in-house, you can dictate the turnaround time, quality, and customer experience,” says Tom Rauen, founder and CEO of 1800Tshirts.com, co-founder of Shirt Lab based in Texas, and Apparelist advisory board member.
Consider what you have already and whether adding services is the right fit before purchasing new inventory or equipment. “Make sure it is something your customers want to buy, and you will have the volume to keep that piece of equipment running,” Rauen advises. “Focus on what you are good and efficient at, and contract everything else out. Once your volume increases high enough in a specific item, then weigh out the cost and margin difference of bringing that production in-house versus outsourcing it.”
Some products fit naturally while others don’t. “Mugs and other flat dye-sublimation products, stickers/labels, and direct-to-film (DTF) transfers are easy products to introduce,” he states. “The saying ‘build out and they will come’ doesn’t always apply, and can lead to stress on the business. Existing clients should be informed about new service offerings to gauge interest. Once the interest is there, then you can start thinking about equipment and workflow around it all to make it happen.”
Where to go
If you’re looking to expand your business, there are some places where you can get answers to questions and buy products. The trade shows provide a good opportunity to look at products and equipment in person. “Bring your own art file and have [manufacturers/suppliers] print a sample with your file to compare apples to apples across various equipment,” says Rauen. “If you see other attendees in the booth, ask if they have the equipment and get feedback.”