[Sparkie]

I know pricing depends on many factors, but I'd like to see if anyone has a formula they use when outsourcing.

I pay the bills with my screen printing and I don't have much call for embroidery, but when I do, I outsource.

I am putting a quote together for a large embroidery job of about 600 - 700 pieces. If the item costs me 7.50 and the stitching costs me 4.40, what would be a fair price for me to charge? Or better yet, is there a proven formula I could use?

 

[selanac]

Many people double or triple, but it really depends on what the customer will pay, and what the other local embroiderers are charging. Don't be afraid to ask the fair price, cause someone else will.

You can call other embroidery businesses around you and see what they charge for the same thing.

 

[bungy]

On qty 600-700, I would do 40-50% markup.
So, your cost around $12.00ea.
At 40% markup $4.80ea = Total gross profit $2880 - $3360
At 50% markup $6.00ea = Total gross profit $3600 - $4200
OK for a middleman.

But if the customer is a good one and spends a bit with you on screenprinting, I might drop to 35% but that would be it.

 

[Sparkie]

Re: Pricing my outsourced embroidery jobs

Thanks Guys. I was around 42% and wasn't sure if that was too high for that quantity. I will also talk to my embroiderer and get his feedback.