Figure out what your time is worth on an hourly basis. Then charge her however long it takes to remove the stitches. Then charge her $10 each again to re-embroider.

 

I would charge her the $10.00 again... It's her mistake (and she admitted it). I would think she would understand that the only way to correct it is to re-do the whole order again. Therefore cost of materials and time. If your cost is not so much give her a 10% discount...

Good luck!

 

removing stitches is a PAIN. i think i'd probably tell here that if she wanted to try to cut them out then go ahead and you would re-embroider for $10/each again. that way if the sweaters get messed up trying to remove them, its her fault and not yours. otherwise, she'll be buying new sweaters...or maybe she could talk them into changing their names to match the sweaters?

 

I agree about having her take out the stitches. Then she'll see how long is takes and how easy it is to damage the garment. Then she'll most likely decide its easier to buy new sweaters or forget about the whole project. I don't think her mistake should become your problem.

I fixed a misspelling made by another company for the wife of my employer once. I didn't want to turn down her request but it was a pain and right before Christmas when I was extremely busy. I couldn't successfully remove all the stitches without damaging the fabric. I was able to embroider a fill over the entire area (it was a canvas bag), added a border and placed the name inside. The fix was a success and she was very appreciative but all the time and worry it caused me wasn't worth it. Customers can't appreciate the work that's involved.

 

I'd show her her original instructions where she misspelled the name, then I'd just be quiet and let her do the talking. A reasonable person isn't going to ask you to do it again free if you followed their instructions correctly. If she does feel you owe her something let her explain why.

She obviously wants them done over and you most likely want her to be satisfied, so why not tell her if she will pay the wholesale price for replacement garments you will embroider them free... Since it's only 2 items.

 

You tell her straight, that redoing it gonna cost more. She need to place another order and pay you for the both. If you are kind enough, offer her some discount. But I believe it would not be wise to remove the name then redo it again.