[amayausers] Re: Pricing Confessions...and advice for newbies
- From: "Linen Barn" <linen@xxxxxxxxxxx>
- To: <amayausers@xxxxxxxxxxxxx>
- Date: Sat, 21 Aug 2004 10:39:55 -0700
My pricing structure is a little different since I do about 70% contract
work. I charge $0.50 per 1000 for most of my embroidery. I usually charge
around 80% markup on garments when I am selling to my end users but stay at
the same price for the embroidery. I have a min. of $3 for embroidery but
will go down to $2.50 for certain contract costomers. There is one shop in
town that runs more heads than me (they have 18, I have 11) and he charges
about the same prices as I do but I end up with a bigger share of the
business. Most of the small shops around here charge $1 per thousand with
100% markup on Garments which I hear is pretty standard, but they have to be
in a niche market to compete with me.
Aaron Sargent
The Linen Barn
linen@xxxxxxxxxxx
Medford, Oregon
----- Original Message -----
From: <embroideryexpress@xxxxxxxxxxx>
To: <eline@xxxxxxxxxxxxxxxxxxxxxxx>; <amayausers@xxxxxxxxxxxxx>
Sent: Friday, August 20, 2004 5:54 PM
Subject: [amayausers] Pricing Confessions...and advice for newbies
> There have been lots of discussion...new embroiderers looking for pricing
guidelines. That's a tough one and besides stitch count, overhead, garment
mark-up, you have to figure can you charge a higher price based on lack of
competiton...or must you come in lower to compete with everyone. I have
been trying to figure this all out since I started last July. One thing I
often do is say...it will be $8 to $12 depending on the stitch count and
when I hear OH...THAT'S GREAT... it's easy...it's $12 whether it's 4,000 or
8,000. I say that laughing because I have come in low at times and I think
we would all like to make AS MUCH AS POSSIBLE with every project. Two
things that have been a challenge for me are:
> 1) recording all quotes provided...often I discuss this over the phone and
they come back 2,4,6 weeks later and I don't remember the exact price I had
previously given...or the estimate on the stitch count comes out higher and
you adjust the price with the customer and forget to write it down. Time to
write the bill and you strugle to remember.....
> 2) I feel like my pricing is generally very reasonable because I am trying
to build a customer base. I once gave a very low price and then agreed to
come down and then the order got larger....and I started thinking if you are
make diddly squat doing the embroidery x 1 hour....doing it TIMES 6 is
UNBEARABLE. I cringe when I hear some of the discussions and how cheap some
are willing to go...maybe the time would be better spent marketing,
relaxing, being with the family. I've passed on a few calls because they
want the moon and the stars for $3. NO THANKS!!!!
>
>
>
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