embroidery pricing

How to Price Embroidery Jobs

Steven Farag

Steven gained extensive experience throughout his time at the University of Illinois building a large customer base for decorated goods using e-commerce and digital marketing. After graduation, Farag purchased Campus Sportswear Inc, a family owned screen printing and embroidery company on the University's campus. Farag has transformed and rebranded the company, now known as Campus Ink. When he's not working on his business, he is traveling and meeting with other shop owners. You can contact Steven at Steven@campus.ink or www.campus.ink.

Disclaimer: This article will not give you the exact price guide for your embroidery. Instead, it outlines a few key factors that should go into making your price. 

Whether you have a single head machine or are running an entire fleet of embroidery machines, you might be thinking, "Is my pricing right?"

You need to do some basic calculations to ensure that you are constantly making money when your machines are running. This is calculated by figuring your overhead and labor costs divided by the time you are operating. 

If you are doing contract embroidery, you might already have rules in place and price sheets you follow, there may be some takeaways for you as well. 

Summary Basics of Pricing

1. Determine set up and digitizing fees based on complexity (easy, medium, hard).

2. Charge per 1,000 stitches starting at 5,000 stitches, for example. Increase prices as stitches go up because complexity goes up. (e.g., $5.00 for 5,000 stitches, $6.50 for 6,000 stitches)

3. Don't over-incentivize for quantity breaks unless you have faster production channels. Don't assume you'll be working at a faster pace just because you're pumping out more pieces. 

4. Charge differently for different garments. This compensates for hooping challenges (easy, medium, hard). 

5. Assess pricing based on the raw cost of goods. More expensive items are more expensive to replace, so protect yourself. (e.g., Garments that cost you $5–10 cost X amount of dollars for customers, $10–20-garments cost 1.25 times the $5–10 items, etc.)

Remember that items can always be broken down into an a la carte menu.