The hidden costs of in-house production vs. outsourced custom products

Hidden costs of in-house production

In-house production carries invisible costs like maintenance, storage, and labor. These lower actual net profit compared to the scalable, fixed-cost model of print on demand. For entrepreneurs, understanding these costs is vital. Choosing print on demand means choosing predictability.

4 Common hidden expenses

Many business owners overlook critical expenses. These costs accumulate rapidly and impact net profit. Stop letting unseen overhead eat your profits.

• Equipment maintenance and depreciation: Beyond the purchase price, specialized machinery like DTG printers demands routine servicing, unexpected repairs, and rapid depreciation. These are unpredictable fixed costs that do not scale efficiently with sales volume.
• Electricity and utilities: Industrial printers, heat presses, and climate control consume significant energy. These variable operational costs fluctuate with use and market rates, making them difficult to forecast.
• Material waste and failed prints: Spoilage is an unavoidable reality of in-house production. Misprints, defective items, and leftover material waste cut directly into your Cost of Goods Sold (COGS) without generating revenue.
• Warehouse space and inventory holding costs: Maintaining a production space incurs rent, insurance, and security expenses. Capital tied up in blank inventory represents an opportunity cost. For an asset-light operator, holding stock introduces unnecessary risk.

Scalability without operational bottlenecks

Scalability without increased labor or infrastructure is the goal. Traditional in-house models impose a labor ceiling and introduce operational risk. Printify’s Print on Demand model offers flexibility, enabling true business leverage and growth.

Scaling from 10 to 1,000 orders

Outsourcing to Printify removes the labor ceiling. This allows you to scale effortlessly from ten to 1,000 orders without hiring staff, purchasing a second printer, or expanding your physical footprint. Optimize your Return on Investment (ROI) with a partner built for growth.

• Eliminating the labor ceiling: In-house production ties growth to hiring, training, and managing staff. Print on Demand provides an elastic workforce through the Printify network of Print Providers, helping you handle volume fluctuations.
• Mitigating financial and operational risks: Printify’s Print on Demand model eliminates inventory risk because you only pay for what sells. It also removes the burden of equipment breakdowns and maintenance costs. This shifts unpredictable fixed costs to predictable variable costs per unit.
• Reclaiming time for strategic activities: Reducing time spent on production frees you to focus on strategic planning, marketing campaigns, and product development. These activities drive business growth and deliver higher net profit margins.

Maximize net profit with Printify

Printify is your strategic partner for maximizing net profit through transparent, scalable production. Make informed, data-driven decisions that translate directly into more money and autonomy.

Calculate your margin expansion

Calculate your current total cost per unit for in-house production and compare it vs Printify Premium rates. This comparison reveals the true cost of ownership versus a scalable service.

• Itemize your true in-house costs per unit: Perform a mental audit. Calculate raw material cost, labor time (including your own), staff wages, equipment depreciation, maintenance, electricity, and estimated waste per unit.
• Compare with Printify Premium rates: Compare your itemized in-house cost against the lower per-unit costs offered by Printify Premium. The fixed monthly fee for Premium unlocks superior pricing, converting high operational costs into a predictable subscription.

Ready to reclaim operational efficiency and expand your margins? Stop guessing your true costs. Visit the Printify Pricing page now. Use Printify Premium rates to compare your current costs and calculate your immediate margin expansion.