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Contract screen printing (or contract printing) is when a print shop subcontracts printing to another print shop. This means another print shop does the actual printing. Print shops may subcontract jobs because of the job's size, difficulty, decoration type, and a variety of other reasons.
The goal for most screen printers is to make 20%-45% profit on the shirts printed. If you're not sure that you're doing it right, check out local shops and make sure you're competitive. If you can't keep up, consider printing something special that those shops don't offer, like specialized ink or screen prints on wood.
More than likely, if you have ever placed a screen printing order before, you have made a retail screen printing purchase. In this scenario, the end-user like a small business or organization utilizes the resources of the screen printing company from start to finish for their custom t-shirts or items.