What should I ask about a screen printing shop’s blank garment suppliers?
Ask who supplies the blanks, how many suppliers the shop uses, and what happens when a favourite style runs out. Look for backup sources, written pricing and account terms that will carry over to you. One supplier with no alternative is the main risk.
Blank garments are the largest material cost for most print shops, so the supplier relationship matters. Ask for a list of the suppliers used over the past year and what share of purchases each one received. Find out whether pricing is quoted, negotiated or set by the shop’s account history, and whether it will survive a change of owner.
Ask how the shop handles stock-outs and delays. Does the owner have a second source for the top styles and colours? Ask about the last time a customer’s preferred shirt was unavailable and how it was resolved.
Check how the shop pays. Credit terms, deposits and any balance owing on the account should be disclosed. Find out whether the account is in the owner’s personal name. Look at stock on the shelves. Ask which items belong to customers, which are leftover from past jobs and which move quickly. Slow-moving stock should not be priced like current stock. Your accountant can help you review supplier balances and inventory before closing. Ask whether any customer brings their own blanks, since that changes how much supplier risk the shop really carries. Ask for the most recent supplier statements, and compare them with what the owner says is owing.
Key takeaways
- Ask for each supplier’s share of purchases and the pricing terms.
- Find out whether a backup source exists for the top styles.
- Separate customer-owned and leftover stock from usable inventory.
Related reading
12 pages on the same subject, grouped by topic.
Buying
- Expert answerWhat makes an embroidery or screen-printing shop profitable?
- Expert answerHow do I assess the wide-format printers and routers in a sign shop?
- Expert answerHow do I check an apparel contractor’s trims and fabric inventory belongs to the shop?
- Expert answerWhat should I ask about the outsourced work a print shop sends to other printers?
- Expert answerWhat should I check before buying a screen-printing or t-shirt business?
- Expert answerWhat does a woodworking shop’s lumber supplier mix say about its stability?
- Expert answerHow do I check a glass shop’s glass suppliers before buying?
- Expert answerShould a formal wear shop own its rental tuxedos or use a wholesale rental supplier?
- Expert answerWhat should I ask about a collision shop’s reliance on one paint supplier?
- Expert answerWhat should I ask about a trailer repair shop’s parts runner and supplier credit?
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat is inventory
- 03Business Development Bank of CanadaGovernmentHow to diversify your supply chain
Deavo is an advertising and listings platform, not a brokerage, law firm or valuation firm. This page is general information, not legal, tax, accounting or valuation advice, and rules differ by province. Confirm anything you rely on with a qualified professional before you act on it.