Rejects cost money and there’s a quick and simple calculation to bring the cost of rejects into focus.

Any number of mistakes and oversights can result in a reject. It’s important to be reminded of this whether you’re a new sole-operator or an owner of a large shop.

If the reject rate is not watched carefully it can become costly. Try this simple calculation . . . what is your margin on an impression on customer-supplied shirts? (Let’s call this $A). Now, what is the cost of replacing the customer’s rejected shirt plus the cost of making the impression? (Let’s call this $B). Now divide $B by $A. This tells you how many impressions you have to do just to get back to break-even after incurring a rejection. You can’t make money when you’re working to pay for rejects.

Even if you can fix a mistake with a spot-remover gun, it may less costly than replacing a garment but it’s still going to cost you in terms of time and chemical cost.

And that’s just the money side of it. What about the embarrassment of having to admit to a customer that you’ve messed up a bunch of their shirts? What will too much of this do to your shop’s reputation?

Everyone in your shop should understand the true cost of a reject—from the person that takes the order, to the artist, to the screen person, to the printer, and everyone else.