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Calculating embroidery cost

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Old October 5th, 2015, 06:32 AM   #1 (permalink)
smd1973 smd1973 is offline
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Default Calculating embroidery cost

Hello, my company recently brought our embroidery in house and we are trying to get a handle on what our costs are to run our multi-head machine. One of the things that we have not figured out is how to calculate the cost of the thread we use. Is there a formula that anyone uses to assign a thread cost to running embroidery? Maybe a rule of the thumb that relates the number of stitches per design to the amount of thread used? Any help is appreciated. Thank you!
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Old October 5th, 2015, 10:00 AM   #2 (permalink)
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Default Re: Calculating embroidery cost

Honestly at the end of the day thread costs pennies for a garment in most cases.

The issue comes into play that you have to have a assortment of colors and that gets expensive especially when running Multi Head machines where adding on a color adds on multiple cones and we do not use the Mini Cones so when we add a color we buy the full size cones only.

True cost is really pennies per garment in most cases however having a good assortment to offer can really add up.

We fought this for years and now I factor thread cost more like the Light and Water Bill as part of doing business but we do not tie it to a specific job cost if that makes sense.

Backing falls into this same category, except we have standard backings and then we have things that we charge extra to use like Solvy for the added cost and the added time it takes to use it as well.
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Old October 5th, 2015, 01:17 PM   #3 (permalink)
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Default Re: Calculating embroidery cost

Hi Dear,

Method of Embroidery Thread Consumption:

http://owndigitizing.blogspot.com/20...nsumption.html
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Old October 6th, 2015, 10:35 AM   #4 (permalink)
smd1973 smd1973 is offline
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Default Re: Calculating embroidery cost

Great, thanks for the help. The 7mm per stitch method will be perfect for us to get in the ball park with our costs. Thank you!
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Old October 7th, 2015, 10:35 AM   #5 (permalink)
Robert Young Robert Young is offline
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Default Re: Calculating embroidery cost

as a digitizer my question is how many stitches in a normal design are 7mm long?? Very rare for us to have stitches that long.
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Old October 8th, 2015, 12:56 PM   #6 (permalink)
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Default Re: Calculating embroidery cost

Hmm then you gotta factor in that a design has how many colors, and how much thread for each color, so added cones become a cost factor vs single color designs, etc etc etc.

Personally I would use that method to maybe get the pennies it cost per garment and then just say that is how many pennies it cost per garment on an average job. Otherwise the factors get complicated and it still comes down to pennies per garment for most designs.
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Old October 8th, 2015, 01:10 PM   #7 (permalink)
gnizitigid gnizitigid is offline
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Default Re: Calculating embroidery cost

many use how many stitches
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Old October 12th, 2015, 03:48 PM   #8 (permalink)
dchap13 dchap13 is offline
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Default Re: Calculating embroidery cost

I've done cost analysis before, and it's always the same: the cost of thread is less than a penny per garment. It's the custom colors, or "odd" colors (that you only use once) that will end up costing a lot. As you probably know, your biggest expense is your labor. The materials cost is negligible when considered as a cost per item.
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