Is the digitizing industry in the West doomed?

Marc · November 21st, 2011, 09:33 PM

Let's talk about outsourcing. How can Western digitizers compete with less than $2/1,000 stitches, free designs, and no rush and edit charges?

I remember digitizers in the U.S./Canada charging $10+ per thousand stitches not too long ago. It's rare see that kind of pricing now. Although, the industry has moved to charging a flat rate and/or by design complexity. I've seen prices around $35 or lower based on this kind of pricing method. Since the average left chest/hat logo is around 8,000 stitches, that comes out to around $4/1,000 stitches. I've also noticed rush and edit charges included in that pricing.

megrisoft · November 22nd, 2011, 03:45 AM

Hi Marc...

I have been member from many years on this forum and seen prices of many companies....We came down from $3/1000 to $1.5/1000 stitches.

I have also offered Flat prices but those does not work if you are a company.

inkman996 · November 22nd, 2011, 07:58 AM

Marc it is obvious with the advent of the internet and advanced digitizing software it has allowed foreign digitizers to easily tap into our market. A dollar to them is like ten dollars to us. I as well remember when punching was much more time consuming and the internet was just a baby and designs were recieved on floppies.

I really do not see how anyone in the western hemishpere can compete and make any real profit, unless they are living for free in moms basement and working with pirated software.

That brings up another point I am pretty sure the majority of foreign digitizers are using pirated software to start with.

Robert Young · November 22nd, 2011, 08:34 AM

I agreed with the western digitizer doomsday 10 years ago, I was afraid the sky was falling on my skillset so we ventured out to diversify. But I was wrong and now I think the market has pretty much stabilized and prices will only go up as the standard of living (read inflation) hits the rest of the world. I also think that pricing is a self fulfilling prophecy. If you offer 1.00 per thousand designs then you are going to get people who are only price driven. if you mess up, no problem, they are only going to go with a competitor with 1.00 pricing... they are NOT going to go with a higher priced option, they don't see the value in it or the value in having a relationship with a digitizer, it is just a commodity. Besides, if you have higher pricing you don't need as many designs for the same money.
We have not raised or lowered our pricing since opening over 10 years ago as an online digitizing service in America. And it is hard for us to keep up all too often.
This is my 23rd year of digitizing.. going all the way back to Melco Digititrac and paper tapes...

megrisoft · November 22nd, 2011, 08:57 AM

Quote:

Originally Posted by Robert Young

I agreed with the western digitizer doomsday 10 years ago, I was afraid the sky was falling on my skillset so we ventured out to diversify. But I was wrong and now I think the market has pretty much stabilized and prices will only go up as the standard of living (read inflation) hits the rest of the world. I also think that pricing is a self fulfilling prophecy. If you offer 1.00 per thousand designs then you are going to get people who are only price driven. if you mess up, no problem, they are only going to go with a competitor with 1.00 pricing... they are NOT going to go with a higher priced option, they don't see the value in it or the value in having a relationship with a digitizer, it is just a commodity. Besides, if you have higher pricing you don't need as many designs for the same money.
We have not raised or lowered our pricing since opening over 10 years ago as an online digitizing service in America. And it is hard for us to keep up all too often.
This is my 23rd year of digitizing.. going all the way back to Melco Digititrac and paper tapes...

I agree with you.....also clients are not of same thinking as they were before....Sometimes they think even $10 is more for any design and sometime they will ask for Back design and chest design in same cost....

Ink Guy · November 22nd, 2011, 09:57 AM

Quote:

Originally Posted by Robert Young

If you offer 1.00 per thousand designs then you are going to get people who are only price driven. if you mess up, no problem, they are only going to go with a competitor with 1.00 pricing... they are NOT going to go with a higher priced option, they don't see the value in it or the value in having a relationship with a digitizer, it is just a commodity.

Most embroiderers know the difference. Dealing with someone overseas is horrible at times. Under certain conditions there is Nothing better than calling up the digitizer and explaining something in 2 minutes that takes 15 minutes to explain in type..only for them to get it wrong.

I think most of the problem lies in the embroiderer trying to compete to stay in business. Many absorb digitizing fees to get the job which cause other to have to cut corners to get cheaper digitizing.

Embroiderer A gets cheap digitizing done overseas for $18
Embroider B gets high quality digitizing done for $45

It is hard for Embroiderer B to charge for full digitizing when Embroiderer A will give it away.

And to be honest many digitizers even on this end are cutting corners these days.

The best and most dependable of anything is getting slimmer and slimmer.

megrisoft · November 22nd, 2011, 11:06 AM

Quote:

Originally Posted by Ink Guy

Most embroiderers know the difference. Dealing with someone overseas is horrible at times. Under certain conditions there is Nothing better than calling up the digitizer and explaining something in 2 minutes that takes 15 minutes to explain in type..only for them to get it wrong.

I think most of the problem lies in the embroiderer trying to compete to stay in business. Many absorb digitizing fees to get the job which cause other to have to cut corners to get cheaper digitizing.

Embroiderer A gets cheap digitizing done overseas for $18
Embroider B gets high quality digitizing done for $45

It is hard for Embroiderer B to charge for full digitizing when Embroiderer A will give it away.

And to be honest many digitizers even on this end are cutting corners these days.

The best and most dependable of anything is getting slimmer and slimmer.

I do not agree with you when you say that overseas digitizing have quality problems. We are in business from 10 years and have many reputed top companies as our clients. We are based in India.....

Also overseas digitizing companies have facility where they call back and you can call them.

In these days, many companies are cutting costs that why they are sending business outside. They are getting same quality and even better. Just to tell you that many USA and UK digitizing companies send business to India while they claim Made in USA or UK

powerstitch · November 22nd, 2011, 11:30 AM

Just to tell you that many USA and UK digitizing companies send business to India while they claim Made in USA or UK[/QUOTE]

Very true.... we are currently supplying to 2 well known digitizing houses in UK who claim that all their digitizing is done inhouse. Some embroiderers prefer to keep it local for communication purposes and also to support the local industry but what happens in the real world is very different.

Did you know that all the designs supplied by affinity express are being done in a 3rd world country??

The fact remains that the west will not be able to compete in price whether you like it or not. A digitizer is the west will only survive the long run if he / she has loyal customers and the quality is top.

An embroiderer in the west needs to look for a local digitizer who will be able to offer low rates but if that low rate is not low enough, they will loose out to their competition who outsource their digitizing at very low cost.

Don't under estimate the quality of outsourcing. Im not just saying that because of my company but I have recently been studying designs from other digitizers (not from the west) and I have to say they were impressive.

Personally in my opinion if you are an embroidery company in the west and find it difficult to be competitive because of the high local digitizing costs, then you should consider outsourcing. Initially you might incur extra cost to identify the right digitizer but in the long run you will see the savings.

PLEASE NOTE I AM NOT IN ANY WAY DISCOURAGING ANYONE FROM USING YOUR LOCAL DIGITIZERS. I AM ONLY ADVICING ON OTHER OPTIONS THAT YOU COULD TRY ESPECIALLY IN THESE ROUGH TIMES.

There are digitizers all over the world who have tollfree numbers including our company which you can use to find out the status of your order at anytime just like how you would call a local digitizer.

The world is changing and if you dont change with it, you will be left behind.

Ink Guy · November 22nd, 2011, 11:56 AM

Quote:

Originally Posted by megrisoft

I do not agree with you when you say that overseas digitizing have quality problems. We are in business from 10 years and have many reputed top companies as our clients. We are based in India.....

K

I did not say they had quality problems.

I said: Dealing with someone overseas is horrible at times.

Doesn't mean the quality is horrible...But when there is a problem..I think there are more problems with communication..trying to get them to understand what you want different.

I had some digitizers spell words different....as they would say it in their language.

But...Most of the time...there are good results.

powerstitch · November 22nd, 2011, 12:00 PM

HOW TO FIND THE RIGHT DIGITIZER

* collect as many email addresses of digitizers all over the world (atleast 15-20)
* choose a design which has a complex side with small text, maybe gradient, etc which covers most of what is found on majority of the designs
* prepare an order template with all details
* put a note that this design is being emailed to several digitizers and the best one will be chosen
* dont blind copy the email addresses so the receipient can see the others and know its genuine
* send that same design to all the 15-20 digitizers with the same instructions

RESULTS
* you will be surprised how many of them will actually follow your instructions
* discard those who didn't follow your size stated right away because thats the most simple thing to follow
* sample all the designs and make notes for each one (how it ran, number of stitches, etc etc)
* make note of how long it took them to turnaround the design to give you an idea

I know this will be time consuming but in the long run, you will save money and find a satisfactory digitizer that you can work with.

ALL THE BEST!!