[amayausers.com] Re: Keep getting undercut on pricing.
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- Date: Tue, 1 Dec 2009 16:30:26 UT
This message was posted by The Embroidery Authority on AmayaUsers.com. PLEASE
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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
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