pricing

brux · November 27th, 2007, 07:33 AM

Hello all, I am new to embroidery but have been doing other types of stuff for a while.
I have read and searched through the forum on advice on pricing, but nothing. Can anyone help with some advice I can realy use? Once I get set up I dont want to turn customers away for being to high. I have heard that you figure material and labor plus 2.5% is this true?
Thanks

Robert Young · November 27th, 2007, 09:34 AM

Hi, shop the competitors in your area to see what your local pricing is currently. This way you can price your services relative to theirs. Higher if you are going to have better services than they do, lower if you don't think you can. Each area has different pricing so it really does depend on what is happening near you unless you are internet only? Prices here in San Antonio range from 20 cents per thousand to 45 cents per thousand on embroidery... and anywhere from 25% markup on product to 100% markup. Some charge for the digitizing and setup, others include it in the total price... The difference is their experience level and what type of service you can expect to receive generally. Sorry, I know this is not giving you definitive answers but with a little research you can determine for yourself what pricing works for you... and you can change it as you see fit.

brux · November 28th, 2007, 08:36 PM

Ok tell me if this sound correct price of shirt plus 50% mark up plus 1.00 per thousand and 2.5% profit.
That seems to be going rate in my area. Does all this sound familier?

Robert Young · November 29th, 2007, 08:42 AM

This pricing is in line with what our local embroiderers charge.. not sure what you mean by the 2.5 % profit though? Your profit is in the 50% markup and the 1.00 per 1000 stitches and any set-up fees etc... are you adding an additional 2.5% on top of the total of all that?

brux · November 29th, 2007, 01:04 PM

Quote:

Originally Posted by Robert Young

This pricing is in line with what our local embroiderers charge.. not sure what you mean by the 2.5 % profit though? Your profit is in the 50% markup and the 1.00 per 1000 stitches and any set-up fees etc... are you adding an additional 2.5% on top of the total of all that?

Yes, and we still seem to be cheaper.

Robert Young · November 29th, 2007, 05:54 PM

But where do you get 2.5% from... that barely covers your credit card merchant expense, no? That number just seems arbitrary to me...

brux · November 29th, 2007, 07:47 PM

Quote:

Originally Posted by Robert Young

But where do you get 2.5% from... that barely covers your credit card merchant expense, no? That number just seems arbitrary to me...

This is how the company that sold me the machine told me to price. If the 2.5% is not supposed to be added on thin why are we coming up still cheaper than the other companys. Are we still pricing incorrectly?

Robert Young · November 29th, 2007, 09:48 PM

maybe they meant 25%... that sounds more like a profit margin, not 2.5%. While it is important to know what your competitors are doing, just make sure you are happy with what you are doing, that is more important.

brux · December 2nd, 2007, 08:12 AM

10/4

reddog88 · January 17th, 2010, 12:36 PM

Is that 50% the overall markup.

If the shirt is $10, then you mark it to $15, is that what you're saying.

One supplier said double the shirt cost, then add 25%, it comes to $25 that way for the shirt. Add the embroidery at $1 per K. The 25% is some profit and operating expense.

Does that sound correct?