[amayausers] Re: Pricing Your Product
- From: DLCompton@xxxxxxx
- To: amayausers@xxxxxxxxxxxxx
- Date: Tue, 17 Aug 2004 14:11:53 EDT
I think all small business owners struggle with pricing (articles
everywhere). What I did was figure direct costs (thread, backing, etc.),
indirect costs
(electricity, etc.--not much else as I work from home) and what I want to make
per hour. My hourly rate needs to be no less than $30. I have taken the
standard garment markup that SanMar has built in to their catalog. I charge $10
per
thousand for digitizing and $1.00 per thousand for stitchouts with a $5.00
minimum. I have discounted both garments and embroidery. For the garments I
have
taken the catalog piece price subtract the wholesale cost (figuring my profit)
and calculate discounts keeping at least that same profit margin. I use the
same dozen and case pricing categories. For embroidery I start discounting at
72 pieces and again at 144. I figure it takes less time to keep stitching out
the same garment over and over and can pass that savings on to my customer. (I
have done a 260 shirt order on my singlehead Amaya in 4 10-hour days.) For
keyboard lettering I charge $10 for a 10-character line; $5 for personalization
(first name only). Of course sometimes I change pricing due to circumstances.
I'm also heat pressing transfers so I'm using my same $30 hourly rate to
calculate that. I usually make more than $30 per hour, sometimes as much as
$60-$100
but that makes up for when I don't have any jobs.
I do charge more for metallic thread or other specialty threads. I have rush
charges (not quite as standardized yet).
It does help to have a formula in place so you are consistent--valuable if
you give a quote and later they come back and the new quote is in the same
ballpark (I realize the quote can change but it probably shouldn't be so
drastic
that the customer is feeling gouged or you're not shorting yourself).
Enough of my 2 Cents. I am interested in others' pricing.
Dorothy Compton
Bee Embroidered
www.BeeEmbroidered.com
(916) 635-7467
Rancho Cordova, CA
In a message dated 8/17/2004 8:37:46 AM Pacific Daylight Time,
john@xxxxxxxxxxxxx writes:
> 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 guidance
> 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 + stitch
> 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?
>
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