Sorry for the newbie questions but we are a team dealer that has been outsourcing all of our embroidering work to two local guys. The problem we have been running into for the last year is they can’t/ won’t turn the order around fast enough. We spend between $40k and $50k a year for embroidering. I’m thinking about buying a machine and doing it all in house. My questions are training, is there somewhere that has on hands classroom training? Or are there any embroiders in the southeast that would take and train someone for several weeks? This is my main concern, as I have no idea how to run a machine and will have to hire/train someone to run it.
What type of machine, I’m thinking at least a 4 head and maybe a 6 head. Our normal order are around 20-35 pieces but can get up to 140-150 on larger orders. Brands? Will 4 heads be enough or should I go 6? Any good sites that sell used equipment.
What are the profit margins that most of you work with? I don’t expect to make a lot of money just break even and the ability to turn around with our machine will generate more business for us.
Thanks!!
BJ24
Tue, 10/09/2012 - 12:41
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Re: Going into embroidering
I would say the most popular brands out there are Tajima and Barudan. With that being said....I have been in the business digitizing since 1995 and worked on many different types of machines and a machine is a machine. If you can learn one you can learn another. They are basically all similar. Now, when you buy the machine try to get training in the package deal from whoever you buy the machines from. Most people will throw in some training on the machines...just like anything there is a learning curve but if you are willing to put in the time it is worth it in the end. I started out at a digitizing company then moved to a production company that ran 24 hours and then started my own digitizing business so I have seen all aspects of the embroidery process.
Once you own the machine, make sure you understand the technical side of it-what I mean is the maintenance of it. What would hurt money wise is having to bring in a tech. to fix issues. They are very costly and usually not from your area so you have to pay for their travel, expenses and then an arm and leg on the repairs. So take good care of your machines and it will pay on itself. If you are having that much profit off of embroidery I don't see why you wouldn't take the chance and run it in house....
If you have any questions that I could possibly help you with just email me.
BJ
bjbabs24@yahoo.com
minimalist
Tue, 10/09/2012 - 13:56
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Re: Going into embroidering
Take your 40K to 50K and divide by the number of items that were embroidered to give you a rough idea of rate of each piece. Now you get to add in labor, maintenance, supplies, software, training, and taxes. If you take the first figure and divide by 50% or so then you know basically what the margin is. If the second set of expenses is less than that then you get a strange concept known as profit.
minimalist
Tue, 10/09/2012 - 13:57
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Re: Going into embroidering
Forgot to mention something. Running the machine is easy. Figuring out the software is more difficult.
nametags
Tue, 10/09/2012 - 15:23
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Re: Going into embroidering
Hope you're ready to pay someone a decent/good salary for running your machines. If not, you'll pay at the other end for repairs and bad embroidery. And how many people. I agree with minimalist above,,,do the math first.
Robert Young
Tue, 10/09/2012 - 16:32
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Re: Going into embroidering
I agree with Nametags .. but first I would talk to the embroiderers you currently have and find out if they can give you faster services...especially if you feel that if you were faster you would get more business... that is their motivation to get back in your good graces...... if not then I would go one step more... I would steal an already trained operator from them . hey sorry, they already know your product and you said nothing about their quality so I am assuming they are good for you.
Modern Embroidery Designer
volant-tech.com
volantfineart.com
teamsports
Tue, 10/09/2012 - 17:27
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Re: Going into embroidering
Thanks for the help. Robert, we have talked with both guys about getting stuff faster and it doesnt seem to help (I agree I thought that would motivate them but it has not). Their quality is great! Nametag, this is my biggest worry about this, is getting someone that can run the machine/software (I dont have time) and I'm willing to pay someone a good salary.
BJ24
Tue, 10/09/2012 - 19:05
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Re: Going into embroidering
Not sure I agree with paying machine operator too much. Where I used to work we ran 3 shifts with about 20 machine operators. They were all around minimum wage. The only person paid a higher amount in production was the floor manager and the quality control person.
nametags
Tue, 10/23/2012 - 08:00
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Re: Going into embroidering
Here is what happens in my area with this situation, and has happened recently as a matter of fact.
A couple of women started their embroidery business in their home. They moved to a store front within 2 years. One toyota and baraudan machine. They traded out their work schedule and embroidery schedule, 6 days a week, 12 hour days. They tired of it quickly.
They hired a lady that had a machine at home, that was familiar with their machines, to do just the embroidery. Five days a week, 8 hours a day, $8 an hour. Now, the owners only work 3-4 days a week, alternating. Now they're open on sunday. The lady does "hobby" type stuff, no real production or sales.
In 6 months, the lady is now very proficient with their machines, and their software enough to do some advanced stuff, but not all.
Then, the machine operator, says she now wants $10 an hour, and 4 days a week. They say "no". It's october, the holidays are coming.
The lady quits, buys her own big machine, a baraudan, sets up in her garage, gets a face book page, puts a few ads in the local paper, and now is in shape to start up her own business.
The original ladies now have no embroidery operator, and have to go back to work themselves, which they do but with great dislike for it now.
Customers, not knowing the circumstances, come into the shop, buy stuff, and bring stuff in, to be embroidered. They can't/wont' handle it. Guess what. They call their former employee, and contract to her...
After the holdiays, long story short here, they close up, as neither wants to now put in the effort to go back to the long days, neither wants to go through the operator process again, and they got lazy not having to work.
The lady in the garage,,,,,still sewing and selling.
Hope this helps.
Robert Young
Fri, 10/12/2012 - 08:42
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Re: Going into embroidering
I agree that if you know what you are doing , and anyone with 20 machine operators is probably in that category... then you can pay market rate. BUT if you are just starting out and need an operator I would err to the side of caution and pay ABOVE market rate. You need an experienced operator.. one who has been around for years. One of the last things you need is to come in one day and find they have left you to work at a fast food place for more money. (to me paying minimum wage means you can lose them any time they get upset or some friend tells them about an opening somewhere else)
I would pay them enough that you KNOW they are not going anywhere... even when the pressure is on and you are being more demanding or asking them to go above and beyond to finish an order, etc.
Modern Embroidery Designer
volant-tech.com
volantfineart.com
minimalist
Fri, 10/12/2012 - 12:09
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Re: Going into embroidering
I'll add that the OP better learn everything about it as well. Otherwise when Robert's scenario occurs, you're dead in the water. I had this happen in my leather business. One sewing machine operator stopped showing up for work and a month later the other one walked out. I taught myself how to sew and reconstructed all the patterns they stole within a week. Luckily I had bought new JUKI TSC441's replacing the POS Union Locks.
leye2004
Fri, 07/25/2014 - 19:51
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Re: Going into embroidering
Hello my name is Ade, also newbie to embroidery......however I have been doing it for the past 3 years with the help of other people. They are a nice family and are trying to sell their business to me. I have been supplying Uniforms to about three Jails here. This family help me to do the patches and the names on the shirts. I have told them , how much I love the business and they are willing to sell the business as they're a bit elderly. Currently, I go to their shop for training every now and then. I have come to a realization that there is a big market for this business hence am trying to develop myself to get to know how to operate the machine and get to know other technicalities involved. My question is, am not so sure of how old the machines are and how much to pay for the whole business.
Also this is the first time am posting something on this site....really I just want to say something, so am not sure if my question actually make any sense.
Thanks
aardvark7
Sun, 07/27/2014 - 07:05
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Re: Going into embroidering
First, even if it is very hard to do, you have to ignore 'being nice'. I don't mean you should suddenly be angry, ill-mannered, or try to cheat, but you do need to look at the situation with a cool detachment.
This is a business and business only works if you can earn more than it costs; pure and simple.
So first look at the costs: simply ask for the details of the machines (the serial numbers should be sufficient if you have to contact the manufacturers, but the owners should know) and then research places like here to see how much equivalent machines are fetching.
Then how much business do you do and what turnover might you acquire with the new business? Do they have long running contracts?
Are you capable of maintaining capacity, or might you let customers down because you couldn't cope with numbers?
There are many other issues, but if you can guarantee the work, and the money it brings in covers all the costs and more, then it would seem like a decent proposition.
However, you need to be brutally honest with yourself (and I mean BRUTAL) and to go over all the books of the business with a fine toothcomb. I'm not saying the other people are conmen, but making sure about everything won't affect them at all whereas not doing so could cost you everything.