Impressions - Embroidery 2023 - 17

into the machine. Continue timing until you are ready to slide in the
hooped garment for the next run. Multiply that running time (in minutes)
by your business cost per minute. This is the only true way to time
the running cost of the machine, or Cost of Machine Time for each
order. You now have the basis for determining the second part of the
equation above.
Step 7: Add the Cost of Machine Time as devised in Step 6 to the
Cost of Preparation Time as devised in Step 3. You will now have your
true cost per design for however many stitches are in your design. It
should be clear now that you cannot figure your pricing on stitch count
alone. It does not work that way and will not make you any money.
Step 8: Figure what you want to add for a markup. Now comes
the final part of the pricing equation. Without a markup, you do not
have any profits to build or grow your business with. You cannot do
it just charging for your costs. After your markup, you now have the
selling price of each embroidered design per stitch count. The normal
markup can be between 25 percent and 200 percent. It all depends on
your market and whether you are selling garments, or just selling the
embroidery. You need to add more of a markup if you are only selling
The hours spent doing time studies
and getting a handle on your
costs is time well spent. Image by
gstockstudio - stock.adobe.com
the embroidery and the customer is furnishing the garments.
Step 9: Create a price list for the most popular products you sell.
Take the purchase price of each blank item, being sure to add the shipping
cost to determine its true cost. Add a markup to this as well. This
is what you would sell the blank item for without the embroidery. Add
your embroidery cost (including the markup) to create your total selling
price with embroidery for each item. The compete formula is as follows:
Cost of Preparation Time
+ Cost of Machine Time
+ Markup + Cost of Blank
Item (including item
markup) = Total Selling Price
per Embroidered Item
This then is the formula I recommend you use to help you think about
to figure your pricing. This formula works. Pricing your embroidery does
take time, but you must take the time to do it to make a profit with your
business. Without a profit, there is no point of staying in business! I
know it may sound like you are going to end up with a very high price
for your embroidery, but that is what you should be charging for your
embroidery! Most embroiderers are not even covering their costs, let
alone make a profit! Don't make that same mistake! 
Joyce Jagger, creator of The Embroidery Coach
(theembroiderycoach.com) knows of what she
speaks, having nearly lost her own business as a
result of making the same mistakes many other embroidery
entrepreneurs make. Today, in the wake of
selling what ultimately proved a highly successful
business she has dedicated herself to helping others
succeed through personal coaching, a number of
online training programs and her book, The Truth
About Embroidery Business Success. Another book
will be coming out later this year. For more on pricing,
in particular, go to howtopriceembroidery.com.
Time, Cost and Compensation Summarized
There's a lot to keep track of when figuring out how best to price your work, but it's worth it.
Part of running a successful business is ensuring you are compensated fairly. For reference, the
basic sequence for determining the cost per embroidered design is as follows:
1. Total the Cost for Preparation Time - Multiply the time spent performing all the tasks that
go into creating a design or decorating an item according to the cost-per-minute, as determined
by your time studies and an average of several hoopings and preparations.
2. Total the Cost for the Machine Time for a 10,000-stitch design with approximately five colors
- Multiply time by cost-per-minute. Total running time for a 10,000-stitch logo should be
about 36 to 38 minutes, depending on color changes, trims and the speed of the machine. Average
out the time for many different stitch-count runs. The average design is 8,000 stitches,
but many are way over that.
3. Add the Cost of Preparation Time and the Cost of Machine Time to determine the total design
cost - This is not the selling price for a decorated garment or other type of item, only your
embroidered design price.
4. Add a Markup and the cost of the item being decorated (including a markup for the blank item)
to your embroidered design price - This will be your final selling price for a decorated item.
Caption
A Special Supplement to impr essions
17

http://stock.adobe.com http://www.theembroiderycoach.com http://www.howtopriceembroidery.com

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