[amayausers] Re: Any experience with EmbroidMe?
- From: "Avalon Embroidery & Apparel" <avalonembroidery@xxxxxxx>
- To: <amayausers@xxxxxxxxxxxxx>
- Date: Mon, 2 Jul 2007 22:29:59 -0700
Hi Sharon
EmbroidMe shouldn't cause you much trouble....I've seen quite a few come and
go in the last couple of years.
What they are all about : One stop shop...offering screen printing,
embroidery, and heat transfers all in one. They usually locate themselves
in high traffic shopping centers, etc...and they are a "turn key" operation
for anyone who invests the $150k-$200k.
Why they don't do so well : The owners are generally folks that are new
to the industry...and as well all know, there is MUCH to learn. They are
forced to buy BROTHER embroidery machines (4 head) and BROTHER direct to
garment printers...so right off the bat, their overhead is high with lease
payments on $60k worth of equipment. They are also forced to buy their
garments from EmbroidMe...(private label goods) and they must pay a
"franchise fee" percentage of sales each month to the EmbroidMe corporate
office.
The EmbroidMe franchises that have not made it here in southern California
went under due to HIGH overhead costs that are forced upon the franchisee.
I just bought some equipment from someone who had just shut down their
EmbroidMe franchise and when you look at their business plan, in my opinion
it is a recipe for disaster.
They tell you where you can locate.....in most cases they want you in a high
traffic mall (next to a grocery store, etc...) which equals HIGH rent and
lots of small time consuming jobs. The lady that I just spoke with recently
said her #1 complaint was that she couldn't get out of her shop to go do
sales to corporations...she was always stuck with the "grandma baby blanket"
jobs from the grocery store traffic. Good for corporate name exposure, but
bad for the shop owner.
Then, in a triple net lease at a strip mall, you are not only paying high
rent, you are paying the landlord a percentage of your gross sales.
Then, you must pay EmbroidMe a percentage of your gross sales.
Then, you must buy most of your clothes from the EmbroidMe distributor which
is not always competitive.
Then, you are stuck with mega lease payments on your Brother equipment for 5
years.
See the pattern here ? You have very little ability to control
costs...and when it gets right down to it, it's still just embroidery that
they are offering.
They "claim" that you get a bunch of referrals off of their nationally
recognized website, but the folks I spoke with never saw a single referral.
So, at the end of the day....you've put out a boatload of money, and haven't
really got anything in return, AND you are now stuck in a financial position
which puts you at a competitive disadvantage.
If they are the only game in town, they do OK.....if they have any
competition, they go away rather quickly.
Just my 2 cents worth....I've seen this movie several times first hand.
Brad
phone: 760-331-7761
email: AvalonLogoWear@xxxxxxx
web: www.avalonlogowear.com
-----Original Message-----
From: amayausers-bounce@xxxxxxxxxxxxx
[mailto:amayausers-bounce@xxxxxxxxxxxxx] On Behalf Of Rod or Sharon
Sent: Monday, July 02, 2007 8:18 PM
To: amayausers@xxxxxxxxxxxxx
Subject: [amayausers] Any experience with EmbroidMe?
Have any of you researched EmbroidMe? We have a new competitor coming to
town so was wanting to know about this franchise...internet shows very
little.
Sharon
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