let’s do some math
Soooooooooooo this picture is from @tesshollidayofficial‘s first presale round of EYBS merch (in the spring of 2014) - tees, buttons and totes.
Let’s say Tess only sold shirts. Let’s say she sold 800 (at the very least). If a shirt cost $40 (shirt & shipping), she made a total of $32,000 on the very first presale.
Tess claims that she lost money on the EYBS merch sales. She did multiple rounds of merch sales online PLUS selling merch on tour and at garage sales.
I have so many questions. Like - what kind of single color printing job costs $32,000?
It turns out that she had nearly 2000 orders in the first EYBS preorder.
When people asked about the price, Tess claimed that she paid $17 for each shirt. (And yes, she claimed that part of the proceeds would go to charity way back in 2014).
OK, math time.
Let’s say that in the first round of sales, Tess sold 1800 shirts. That’s $72,000 ($40/per shirt) in revenue. It cost Tess $30,600 to have the shirts printed (1800 shirts @ $17 each). If we deduct that cost of production from the revenue, we get a profit of $41,400 in the first round of EYBS sales ALONE.
Now I know you’re thinking. WHAT ABOUT OVERHEAD?????!!! WHAT ABOUT THE COST OF PACKING????
As it turns out, Tess’ team in that first round of sales consisted of her best friend, her 8yr old and her. She sent the shirts out in USPS mailers which are free. There was no wrapping or packaging outside of the mailer - if you ordered a tee, you got it and a receipt.
So let’s say she had to buy a printer, ink and paper. A cheap printer will run about $50; ink is about $20 and a box of paper is about $30. That’s $100 for supplies. Let’s also throw in a tank of gas for the trip to the post office - $30. Oh, and before I forget - labels are about $10. That’s $140 in supplies. I assume she had pens at home to sign all those receipts.
Of course, we don’t know what Tess spent on postage. The postage on my package was under $4 (I live in California). Let’s say Tess spent $6,000 on postage (if we’re thinking about postage variances, smaller packages of just pins, international orders, etc.).
Conservatively, Tess made $35,260 from the first round of EYBS sales.
Let’s not forget that she did multiple EYBS shirt/merch sales - online, at garage sales and on tour at meet & greets and photo shoot events.
So how do you make at least $35,260 (AGAIN, CONSERVATIVELY) and operate at a loss? How did Tess not have enough money to make even a $10 donation to the National Coalition Against Domestic Violence?
Big thanks to whomever shared this post with the EYCS Facebook group. I’m happy that the numbers are being shared with more people even if they are just an estimate based on the first round of EYBS presale merch from the spring of 2014.
First off, thanks for the compliment Rachel. Not for nothing but maybe if Tess had an actual accountant (or even a very fancy calculator) to begin with, none of us would be here.
Let’s go point by point. Again, my post is only reflecting the first round of EYBS merch in the spring of 2014 and not any subsequent online sales or the sales that took place at live events.
- I have it on excellent authority that Tess had two adults working on the first round of EYBS merch (her assistant & another person). Let’s say Tess paid them minimum wage ($8/hr in CA for the spring of 2014) and it took them 2.5 8-hour days to pack and ship all the merch with Tess and her son helping. That’s $320 she would have paid them ($8/hr at 20 hours x2 = $320).
- I can’t account for the international orders because like Rachel, I don’t have a clear idea of how many orders were actually placed in the spring of 2014. Maybe there is a big chunk of the $35,260 that went to re-ordering and re-shipping on international orders but until I see some concrete numbers on that, I can’t comment.
- %15 percent tax on $35,260 is $5,289. I have no idea what kind of tax Rachel is referring to - state sales tax, business income tax or personal income tax. IF Tess paid 15% in ‘taxes’, that brings the profit to $29,971. That seems like enough money to give NCADV a nice donation but I’m not actually an accountant so what do I know???
- Rachel wasn’t working for Tess in the spring of 2014 so her comment about a retainer/fees Tess pays her is irrelevant to my numbers.
So let’s say that for the spring 2014 EYBS online presale Tess paid taxes AND paid her team. It is possible (again, based on a conservative estimate of sales and costs,) she still made $29,651 ($35,260 - $5,289 - $320 = $29,651)
I’ll put that in glitter for ya.