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Discuss the various aspects of embroidery services: stitchcount, DST files, machinery, garment selection, etc.

Where to start in determining how much to charge for an embroidery piece?



 
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Old September 10th, 2009 Sep 10, 2009 8:48:43 AM -   #1 (permalink)
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Default Where to start in determining how much to charge for an embroidery piece?

I would like to know where to start in determining how much to charge for an embroidery piece. Is there a certain formula everyone uses?
 
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Old September 10th, 2009 Sep 10, 2009 9:26:36 AM -   #2 (permalink)
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Default re: Where to start in determining how much to charge for an embroidery piece?

Most embroiderers charge by the stitch....actually per 1000 stitches. The per thousand price will have breaks at 10K, etc.

Do a search to find places that offer embroidery, and check out their prices for reference.

My prices are different for customer supplied items than for items the customer is purchasing from me.

If you take customer supplied goods, I suggest you set a minimum order charge.
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Old September 11th, 2009 Sep 11, 2009 1:35:18 PM -   #3 (permalink)
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Default Re: Where to start in determining how much to charge for an embroidery piece?

Jimmy Lamb has a great worksheet that will help you figure out what you need to charge for you work.
Much better, more accurate than charging by the stitch count.
I don't have the link handy but hopefully someone else will jump in with that info.
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Old September 13th, 2009 Sep 13, 2009 7:42:49 AM -   #4 (permalink)
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Default Re: Where to start in determining how much to charge for an embroidery piece?

You're charging for time more than anything. The equipment, labor and supplies generally make up your costs, then it needs to be marked up to pay for rent, insurance, office supplies, marketing... etc... the stuff you need to stay in business.

Pretty easy to get to costs by figuring some depreciation on the equipment, get that to an hourly figure and land on a burdened hourly labor figure. If you are doing this yourself, you can never grow if you don't figure paying someone to do it as a cost.

Make some assumptions on how many stitches per hour you can do in a production environment (include loading garments, thread breaks and those wide columns that end up with a slower sewing rate).

Embroidery supplies (thread, bobbin, backing, topping) will probably work out to $0.05 per 1,000 stitches. Depending on your situation, a commercial single-head machine should work out to something like $0.90 to $1.20 in costs. Figure your mark-up should include about 35% of the retail price... $0.90/.65 = $1.38

That's a process you might try... your mileage may differ.
 
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Old September 13th, 2009 Sep 13, 2009 12:04:32 PM -   #5 (permalink)
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Default Re: Where to start in determining how much to charge for an embroidery piece?

Here are the factors we take into consideration:

  1. Quantity
  2. If the design will coming back regularly or is it a one off.... if one off then we will charge them the digitising fee....if qty above 300 pcs then we bear the digitising cost.
  3. Stitchcount.....based per 1000sts but also consider and minimum and maximum price (eg) 2000 sts will fall under the minimum price
  4. who is the client? regular or one off?
  5. Nature of design....sometimes the client may have been defeated to get the logo done exactly as per the artwork by their normal embroiderer and they come to you cos they know you will do a good job....in this case charge a premium for your skills
  6. We have done quantities of over 100,000 pcs...in this case we have a different way to price the embroidery. Eg. our 20 head machine should generate sales of $40.00 per hour....so we work back and calculate what qty can we get out using using the most efficient way of production. So eg in an hour if we can get out 120 pcs per hour then each piece will cost $0.33.
Hope this helps.
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Old September 13th, 2009 Sep 13, 2009 1:37:31 PM -   #6 (permalink)
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Default Re: Where to start in determining how much to charge for an embroidery piece?

I charge $1.00 per thousand stiches. That is pretty much the going rate. Also make sure you charge to digitize the artwork. That price is up to you and depends on the complexity of the design but $20.00 is a good start.
Here is what I suggest.
Firgure out all your monthly overhead costs. Rent, electric, supplies, and such. Then divide it by 160 (40 hours per week) and that will give you your hourly overhead costs to run.
So just say your overhead is $4.00 and hour, and the design takes 1 hour to complete.
That means you need to make $4.00 per peice to break even. So add that to your garmet price and then add $1.00 per thousand stiches after that. That will pay your wages.
One other tip is that I usually add 50% mark up to the garmet itself jsut to help pay for incedental cost. Hope this helps.
 
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Old September 14th, 2009 Sep 14, 2009 1:26:34 PM -   #7 (permalink)
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Default Re: Where to start in determining how much to charge for an embroidery piece?

This might be what Jane was thinking about when she mentioned Jimmy Lamb

What Do I Charge?
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Old September 15th, 2009 Sep 15, 2009 5:46:49 AM -   #8 (permalink)
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Default Re: Where to start in determining how much to charge for an embroidery piece?

Quote:
Originally Posted by EnMartian
This might be what Jane was thinking about when she mentioned Jimmy Lamb

What Do I Charge?
That is it. I just couldn't remember the link. Thanks.
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