Pricing

[Mila]

I am a new owner of an AMAYA XT and have just been learn the machine. We have not started contracting jobs yet but a friend as me to do some shirts and hats for her. It is only 5 shirts and 5 hats. They are furnishing the garments. It is three text lines nothing fancy and a thread count of 3938. My problem is what to charge her for the work. Can someone help me? I don't want to charge to much but then I don't want to do the work for nothing.

Mila

[signman]

If you can get to the archives, there are several 'threads' on pricing.
It boils down to 'per thousand stitch charge', plus a 'hooping charge' to cover your TIME.
TIME is money...period. You have an investment in your Amaya, probably in excess of $18-20,000. (machine, lease, program, supplies, etc.)
Let's ignore the fact this is your friend.
#1...if you let a customer supply the goods-you have no 'profit margin' for markup price wholesale to retail. That can run $2-3 for a teeshirt to $40 or more for a jacket-lost profit.
#2...if you screw up a shirt-YOU have to go buy a replacement-at retail price, just like she did. MORE lost income-you can't charge the customer!
#3...design, layout-even plain text takes 15-30 minutes to sit with a client and pick the font, pick colors, test it, resize it, etc.
TIME IS MONEY-and your 'active, sewing time' should bring you $40-$50 AN HOUR. So you've got $10-$15 already just to do a simple layout.
#4...sewout-have to sew a couple 'proofs' on scrap to make sure it is legible, looks right, color is right...another $10-$15
#5...actual sewing. Average (by vote on the chat here) is $1.50 per thousand stitches retail. You have 4,000 (always round up) so there is $6.00 (4 x 1.50) per item.
since you didn't supply the shirts, make no profit off them-you should charge a 'hooping charge' of $3-$5 PER ITEM for the time it takes you to hoop and setup. So now you are up to $9-12 per item for custom sewing. That is a good deal!
If you are lucky-you can sew out 4 items an hour-hats-if you are REAL lucky, 4 an hour-shirts, maybe 6 if everything goes right.
So your potential is $48-$60 per hour-right where you should be for making a little profit.
Now you know why owning ONE machine just isn't going to cut it for any big jobs, wholesale jobs (low profit high volume), etc.
To make a decent living-you either have to get full retail $$ for every item, or have multiple heads so instead of 4-5 items per hour you can do 10 or more.
Good luck!
Roland

[Image Embroidery]

Roland,

Very well stated. When I first opened I was afraid to charge what the work was worth, because I was new and didn't want to lose customers because my prices were too high. I learned real quick....charge what the job is worth!
I would charge $7.50 an item for this job, plus a set-up fee of $10.00 for time spent with the lettering. Even if it is "just lettering", lettering will not always look exactly the same when moving from flats to caps.
And yes, some people do walk out when I tell them the charge is $7.50 for even just a name!
LuAnn

[signman]

Some of my prices were also based on 'established' business pricing through advertising specialty suppliers-and $7.50 per name, Luann--is not unusual at all. Even WHOLESALE with an order for several dozen custom shirts-you can easily be charged $5.00 per name. NEVER try to 'match' a price when someone comes in and tells you 'on-line' or 'in this catalog' they can pay a lower price. They don't ever see the fine print-freight charges, minimum charges, setup charges...they only see the 'per item' price and it will ALWAYS be for clothing you have to BUY from that catalog or company. None of those 'lower price' shops will ever embroidery on customer supplied goods for that low price.
Don't fall for it-you will lose every time!

[Debbie Rinehart]

Mila,
I humbly agree with the others! I charge a flat $10.00 for anything under 13,000 stitches, unless it is one name above the pocket; like BOB. Then it's $6.50. If they want a logo above the pocket and then BOB on the other side of the shirt, it's $10.00 for the logo and $3.00 for BOB. So, it's half price for the name when they do both sides. I do the local police department logo and since the badge is about 17,000 stitches, it's $13.00 and the name on the other side is $3.00. Set up is always $25.00 UNLESS it's real easy lettering and I think I'm gonna get repeat business from them. HTH Debbie in Indiana

[Mila]

Thanks to all of you for your replies, I think this pricing is hardest thing to figure out. Again thanks for all of your advise it really helps.

Mila