[amayausers] Re: Pricing Your Product
- From: "Janel Harris" <janel@xxxxxxxxxxxxxx>
- To: <amayausers@xxxxxxxxxxxxx>
- Date: Tue, 17 Aug 2004 09:55:01 -0700
I agree that embroidery is not the place to discount. Basing price on
what it costs to produce the product by assessing all overhead costs
including wages and dividing that by average production capabilities to
figure an hourly rate will ensure a profitable place to start. If that
works out to $1/1000 stitches that's ok. All too often beginners use
that figure or even less without assessing their own business. Then
later they find out their not charging enough to be profitable or don't
figure it out and go out of business.
You hear a lot of fixed markup too such as 100% for retail and 30% for
wholesale. I feel markup has more to do with perceived value. Charge as
much markup as you can for the situation!
Go to the Stitches Magazine website http://www.stitches.com
<http://www.stitches.com/> and do a search on pricing. Tons of great
articles.
Janel Harris
Dimensional Designs
http://www.dimdesigns.com
DesignShop Digitizer
Melco On-Site Trainer
-----Original Message-----
From: amayausers-bounce@xxxxxxxxxxxxx
[mailto:amayausers-bounce@xxxxxxxxxxxxx] On Behalf Of For Heaven's Sake
Embroidery
Sent: Tuesday, August 17, 2004 8:57 AM
To: amayausers@xxxxxxxxxxxxx
Subject: [amayausers] Re: Pricing Your Product
John,
I'm sure you will get lots of replies to this. The general rules of
thumb
are:
double the cost for your garment + .80 - $1 per thousand stitches.
These
are just general guidelines and can be different for volumes, who
supply's
the garment and such. Some add "set-up" charges and some charge
"digitizing
fee's" or "Design Fee's" for in-stock designs.
With volume orders, you may want to reduce the garment mark-up, but I
wouldn't discount the embroidery as that is more of a "fixed cost".
For the schools, I give them a discount AND provide free shirts for the
coaches or class teacher for orders greater than 30 pcs. Just makes
them
want to order from me. I also offer free digitizing on their first
order,
letting them know that the design is mine and not theirs (they may
purchase
it at a big price later if they desire). Again, I do this to get their
business and keep them from going elsewhere.
Kelly
For Heavens Sake Kelly@xxxxxxxx
-----Original Message-----
From: amayausers-bounce@xxxxxxxxxxxxx
[mailto:amayausers-bounce@xxxxxxxxxxxxx]On Behalf Of John Yaglenski
Sent: Tuesday, August 17, 2004 10:38 AM
To: amayausers@xxxxxxxxxxxxx
Subject: [amayausers] Pricing Your Product
Hi All:
More starter questions.
One of the most difficult things about this business (besides mastering
the
Amaya) is figuring out what to charge customers. I would love some
guidence
from those of you that have been doing this for a while.
Do you follow any sort of formula... Such as shirt cost x markup +
stich
count/labor cost = final price ? Or do you sort of wing it...
Double
the cost of shirt and add "X" for the sew out of the design and if that
sounds too low, you add to it? =) Do you charge more for embroidering
on
certain items? Less for others?
The orders are starting to come in and I'd really like to nail down a
pricing strategy.
Todays example. Church group had us digitize a design. That ran $40
(our
cost). They want it sewn out on denim log sleeve work shirts ($7-8 our
cost). Quantity to start is between 1-2 dozen pieces. Design takes
about
10 minutes to sew out on the Amaya. 6 colors, 9600 stitches.
Thoughts?
- - - - - - - -
John Yaglenski
Levelbest Embroidery
I: www.levelbestembroidery.com
P: 301.591.2481
P: 888.229.1779
F: 781.998.6473
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