Keep getting undercut on pricing.

[cmack]

Is everyone having this problem? I get a call for a quote, I give them a fair price, then they go with someone else. I am not sure if they are all telling the other people my price, or if they are that much under me.
I am starting to wonder if this is the business for me.
I am loosing money every year, and I can't land the jobs. There are people doing this stuff around here for .30 and.40c per thousand and not marking up the clothing.
HOW and most of all WHY"?"

If someone can tell me what they charge for a GAME 870-t work shirt with a 17000 4 color design
I would greatly apreciate it.
If you don't want to advertise your price I understand and if you want to tell me privatly I understand that also.
cmack@wideopenwest.com

[cmack]

for a single shirt price. also for 25.then I will decide if this is worth it.

Tank you

[Steve]

I base my prices on quantity and stitch count. It isnt worth my time to do anything at 30 cents/thousand with a single head but someone running a 6 or 8 head machine can make a profit with it. That is why you are being outbid. You just cant compete with the larger companies running mult-head machines and neither can I.

[Kip Biddle]

Oh, how I feel your pain! Been there (and still am to a certain level). Best advice I can tell you is to give your customers the best price you can and stick with it. If they know your pricing is negotiable, then you'll be even more frustrated on every sale you make.

I tell my customers that it's a tee shirt, not a car - the price is what it is.

By best price, I mean the lowest price you can offer them and still make a profit. I know in my very rural region of Western New York State, the days of charging double wholesale and $1.00/1k stitches are gone (at least for right now). For example, my price for the Game 870T with Left Chest Embroidery (around 12k) and Right Chest Name (1 line) goes for $49.99 in my shop. And that price doesn't matter if they buy 1 or 25. I may discount it further if they buy 4 dozen or more, but that price works for both me and my customer.

By sticking with that price, I keep my customers questions to a minimum on future orders and I still make a little jingle. What Steve is saying is very true - I run 4 machines, so I can make a profit at that price compaired to running a single machine.

Hope this helps, and good luck!

[GF]

I agree with the comments above about pricing. Mine is clearly listed and non-negotiable. I am seeing a growth in my studio because I am staying true to the art and workmanship of fine embroidery and staying away from the promotional bargain shoppers. Buyers who demand quality are my best customers and that economy is still very strong. The customers who participate in hiring sweat shops for nothing are finding that service elsewhere. They usually come back to me because the quality is either inconsistent or poor. Stay true to yourself and your passion for fine embroidery. If this isn't a passion of yours, then perhaps rethink your employment options because this will never make you real money unless you own a large multi-head shop and cater to the quantity buyers and low-bid quotes on jobs.

Happy holidays everyone...hope the next few months are prosperous for all.

[GF]

BTW, I still charge a firm $1 per 1000 stitches always. Doesn't matter the quantity. The garments can be customer supplied or purchased through me. I let my customers know that I'm not in the garment industry and I can't depend on that as income. My income is dependant on quality embroidery and I'll stitch pretty much on anything they supply. I do have them sign a release waiver for supplied goods however. Usually, they purchase the garments from me and I charge the suggested retail price on everything.

[The Embroidery Authority - OLD]

CMack,
One could consider there are three levels of embroidery...
1) The home embroiderer with a home machine or one commercial machine working out of their kitchen.
2) The retail embroiderer who has between one to four commercial machines and who works out of a commercial location with with appropriate overhead.
3) The big guy who has 5 to 100 heads(or more) and who is doing wholesale embroidery.

Don't get hung up on the actual details of each of the three listed above, as these descriptions can vary from town to town and region to region.

What you must know is that each of the three listed should never be in competition with each other. They will all have their own markets.

If you are in a retail environment, then you will have the highest price. You should concentrate on your market which will be the onesies and twosies quantity with a decent turnaround and nice options and you should be easily accessible to your customer's busy schedules.

If you are doing wholesale, then you will have large machines which enable you to turn out a half-dozen or more at a time which will give you an edge with pricing. However you will be losing the really big jobs to China and the like.

If you are the home sewer, then you have no overhead and are probably doing it as a hobby and to make a little spending cash. If you are really crankin' the jobs out, then you are in the best place to be if you customer's don't mind driving to your subdivision, hearing your babies cry, or smelling your dinner cooking in the background. Obviously, this won't be the same situation for everyone but you will have to sacrafice a regular home life for that of a home/business life if you have the success you are hoping for.

When we left our home for our first commercial location, our business quadrupled which meant more employees, multiple phone lines, more inventory, and of course, our prices had to go up and up to accomodate.

Currently, we don't turn our machine on for less than $9.99. If they supply a garment, then it goes up to $11.99.

If you are out-numbered by embroiderers in your area who are all going after the same market, then yes, you will have to make a business decision. This is the same thing that Coke and Pepsi or Walmart and Target go thru on a daily basis.

Also consider there is the Internet market as well but as you know, you will be competing with the world.

If you choose to find a niche and only embroider one type of item, say.. church choir robes, and you market yourself accordingly on the Internet, you may wind up having more work than you can handle.

It is because of these risks and headaches as to why everyone doesn't start their own business.

Wishing you the best of luck.

Ed Orantes
Embroidery Tech & Trainer
504-258-6260

[Alicante]

Hi Ed,
You really summed it up.
Quoting Ted Turner, on his father's motto for success in business, "Early to bed and early to rise, work like hell and advertise"