[amayausers.com] Re: contract Emb

Great advice Rolland.  

I think sometimes we all get so wrapped up in trying to bring in business 
that we forget to make some profit for ourselves ;)  

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From: "Roland R. Irish III" <signman@xxxxxxxxxxxxxxxxxxx>
Sent: Friday, January 30, 2009 5:00 PM
To: amayausers@xxxxxxxxxxxxx
Subject: [amayausers.com] Re: contract Emb 

At $4.25 you aren't making any profit...when they supply the shirts!
You aren't charging anything for 'hooping' twice on each shirt. (once 
for name,
once for logo). When YOU supply the shirts you have a markup (profit) 
on each shirt,
so $4.25 is still way low for TWO sewings but liveable if you are 
making at least 30% or more
markup on the shirts. We charge $5 just for hooping (which covers 
backing, solvy, etc.)
for ANY customer supplied item, in addition to embroidery charges. 
And we charge full rate
per thousand stitches on customer supplied goods-when we supply the 
goods, the stitch
charge is 25-50% less because we make a good markup on shirts.
For screenprinting-we try not to do any customer supplied goods- 
because we can't guarantee
the quality of the shirt, we have to screen on defective shirts, etc. 
since they are paying for
EVERY shirt we print. Again, we charge full rate for screens, setup, 
per print charge-so that
we make the SAME profit per hour as if we supplied the shirts.
When pricing, you have to figure your TIME for the job and how many 
you can do per hour.
With one machine-two hoops per shirt-you would be lucky to get 6 
shirts an hour-because
hooping and aligning takes 5 minutes per, X 2 per shirt= 10 minutes=6 
per hour.
Average everyone has tossed around here on pricing threads over the 
last couple years
has been $40-60 PER HOUR that you should be billing above and beyond 
material cost.
That covers your equipment lease/loan, insurance, electricity, 
overhead, supplies, etc.
So 6 shirts per hour would be a minimum of $6.50 - $10 per shirt for 
a job like this.
Just 'name' alone was one discussion, and it ranged from $5 (you 
supply shirt) to $10-
customer supplies shirts.
The only reason the customer is supplying the shirts is because he 
got them cheaper than
buying from you...so why should YOU lose profit because HE got a deal?
I have all kinds of catalogs from commercial embroidery houses, and 
most of them have a minimum
wholesale of $5 just to do a name.
Remember-YOUR TIME is your money-don't give it away!

Roland
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