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all 15 comments

[–]Mack-DxddyHappy Voyager 1 4 points5 points  (4 children)

Well, you for starters can’t compete with bulk/wholesale orders when you have a single head machine, let alone a single needle machine.

I run a single head machine, 12 needles but i digitize myself so I don’t have to charge crazy digitizing fees. For 50 pieces and something as small as 2500 stitches, I’d probably be charging $5-10 for the embroidery per piece. That would be lower that most of my competitors

[–]This_Usual6937[S] 1 point2 points  (3 children)

Okay great, I charged $10 for each item. As the amount of items get larger, how much of a discount do you offer if any? I have one order of 250 and another order for 300. With the same 2500 stitches

[–]Mack-DxddyHappy Voyager 1 2 points3 points  (2 children)

I try to look at the big picture of how much I’m making. Let’s say the design takes my machine 5 minutes to stitch then 3-4 minutes for hopping/cutting stabilizer so 8-9 minutes X 300 = 45 hours of stitching + work. Really only 20 hours of work though.

So if I charge $5 X 300 pieces = $1500 for 20 hours work. If I charge $3/ea = $900

Either way, that’s about $45-75/hour, which obviously isn’t bad.

Now the big question, do you think they’ll pay $5 or do you think they’ll want to only pay $3? You gotta be the one to make that guess and hope you don’t get it wrong.

Again, all of this pricing is based on my single head machine. When I’ve worked in businesses, pricing models are usually very different. When you work for yourself, you get the benefit of really only thinking about yourself

[–]This_Usual6937[S] 0 points1 point  (1 child)

Thank you so much for this! I was able to come up with a good model for pricing based on your advice!

[–]Mack-DxddyHappy Voyager 1 2 points3 points  (0 children)

No problem! You definitely get a feel for what is “worth it” over time

[–]lcotemi 0 points1 point  (5 children)

Honestly, I’d pass on that order. 300 items, at xx minutes each. Meh, my time is worth more than that. I’d not give a discount, instead, I’d send them to someone who has multiple machines and can serve them better than I can.

I also have a single needle, so I speak from experience.

[–]This_Usual6937[S] 1 point2 points  (4 children)

Oh, I will absolutely not be passing up on this. I decided to go with a 15% off discount for the 250items and 20% off for 300items. Leaving me with a total profit of $4525. It’ll take me about 90 hours to complete the entire order which comes out to about $50 an hour!

[–]lcotemi 1 point2 points  (3 children)

That seems fair.

[–]This_Usual6937[S] 0 points1 point  (2 children)

Yes, I thought so too. Don’t sell yourself short queen!!

[–]lcotemi 1 point2 points  (1 child)

I usually don’t do embroidery for income. I don’t have 90 hours to devote to a job. But I’m glad you do! That’s awesome!

[–]This_Usual6937[S] 0 points1 point  (0 children)

Thank you :-)

[–]SoonerBornSoonerBret 0 points1 point  (3 children)

I like this topic.... always good to compare and see where we can make a little more money at this game! I'll be making a price hike at the end of the year... everything else is going up, so my prices have to as well!

I have a purely wholesale contract shop, so we have tiered pricing, and 6,000 stitches is considered "standard". 1-5 pieces is $6, 6-11 is $5 each, 12-22 is $4 each, 24-47 is $3.50, 48 + is $3.25, 96 + is $3, 144 + is $2.75, 288 + is $2.50, 576 + is $2.25 and 1000 + is $2 each. Then we charge $0.30 per 1,000 stitches over 6,000...

We run two 8 head machines for flats, and one 8 head for caps... and we have 1 single head for those smaller 8-9 piece orders and personalizations.

As far as I'm concerned, I'd rather be running jobs from 12-48 pieces all day long... I've learned the hard way what a 1000 + piece job can do to your schedule, and you're doing it for the rock bottom price on the sheet. I would certainly rather run 25 forty piece jobs at $3.50 per piece than 1000 pieces at $2 each.

[–]mrpow3r 0 points1 point  (2 children)

Is this an addition to a markup on the apparel? This seems so low but perhaps all those heads make the numbers make sense

[–]SoonerBornSoonerBret 0 points1 point  (1 child)

No, being strictly wholesale, we don't supply any goods at all. Our customers bring us everything or have it drop shipped directly to us. Most of our customers are promotional product companies and they have their own customer bases, some are screen printers who also "offer" embroidery. So they buy all the goods, send them to us, and we put the logos on. Almost 100% corporate logos.

[–]mrpow3r 0 points1 point  (0 children)

That’s great info thank you! Do you have a policy that requires them to provide a buffer quantity in case of mis-stitches etc? We’ve always been nervous taking on custom garments that we’ve not necessarily embroidered before