Pricing

[NewToEmb]

Recently had a friend tell me that her son needs about 500 shirts for a client that they provide welcome baskets for. She tells me that an embroiderer charges him $1.50 for logos and/or wording placed on shirts regardless of the number of stitches or the number of shirts. I have been told that we should charge $1.00 per thousand stitches for retail orders and 50 to 60 cents for wholesale orders otherwise I would not make any money in the end. At that pricing I cannot compete with his present supplier. I am a one person home hobby business (so far) with a six needle Babylock that I love, bought as a precursor to an Amaya which I really want if my business takes off which probably won't happen if I can't make any money or get new customers. Any thoughts on this?? By the way I have learned so much from this group, even tho I have a Babylock your suggestions have been very helpful. Thank you all.

[Rod or Sharon]

I am sure there will be many who can offer helpful insight for you. Several years back when we first started, I was told that I needed to make at least $25 to $30 an hour to realize any profit. The pricing of $1.00 per thousand stitches was the going rate back then. If you only have one machine, you have to charge more than those of us who have more machines. You must realize a profit and be able to pay your taxes and put some away for the day you need to replace supplies and perhaps a service call on a machine. Sometimes you must let those who charge near nothing have the job and it won't be too long before they realize it is a hobby and not a business for them. I hope you are reading between the lines! Good luck, Sharon

[amayaki]

Before I bought a multi-needle embroidery machine, I looked very carefully and CLOSELY at the QUALITY of stitchery for general embroidery, and lettering in particular. Ask to see some of your friend's son's el-cheapo embroidered items. It does sound to me, as if your friend is trying to get a good deal for her son (as you would), and you should heed R&S's reply about 'reading between the lines'

I hunt out decent 2nd-hand clothing which may have inferior quality embroidery, and cut out and mount the said embroidery to illustrate the difference beteen 'them' and me. Clients mostly haven't go a clue about embroidery quality, but with a little education through demonstration, I have had consistent re-orders.

I don't do 'mate's rates'. I have enough confidence in the quality of my workmanship to be a price MAKER not a price TAKER. Perhaps submit a sample of your quality embroidery by way of a quote, but dont sacrifice your friendship for a few pieces of silver. Head up, shoulders back. Smile and be positive about yourself and your prices.