In-house production vs outsourced merch
Run print/embroidery in-house or outsource to a managed vendor — the real cost crossover sits around 25-40k units/year per technique.
When in-house wins
In-house wins when annual volume per technique exceeds 30k+ units, you have steady demand (not campaign-driven), and the team already runs operations. Capex EUR 80-250k per machine, plus FTE for operator, ink, maintenance, waste compliance.
When outsource wins
Outsourcing wins for campaign-driven demand, multi-technique merch (DTF + embroidery + UV in one PO), and below 30k units. No capex, no FTE, no waste-management overhead. Lead time 5-8 days vs 1-2 days in-house but with full SLA and insurance.
Pricing — Italy
EUR pricing excluding VAT. Standard lead 5-8 working days, rush production +35% delivers in 3-5 days. Production hub serves the whole country. IVA 22%, e-invoices via SdI (Sistema di Interscambio). Milano hub.
FAQ
Capex break-even?
Single-technique: 25-40k units/year. Multi-technique: outsource almost always wins under 100k units/year aggregate.
Hidden costs of in-house?
Ink/film waste 5-12%, machine downtime 8-15%, operator turnover, REACH compliance for inks, end-of-life machine depreciation.
Hybrid model?
Yes — in-house for repeatable hero SKU (hoodies, mugs), outsource everything else. Common at 5k+ employee enterprises.
Lead time?
In-house 1-2 days for stock items. Outsourced 5-8 days standard, 3-5 days rush at +35%.
Quality consistency?
Outsourced vendor on Tier-1 contract typically beats in-house — calibrated machines, ISO 9001 QC, formal reject rate <0.8%.