DigitSmith

Pricing HELP!!!

Reply
 
Thread Tools Search this Thread
Old March 14th, 2010, 11:03 PM   #1 (permalink)
Tyrko Tyrko is offline
Junior Member
Join Date:
Jun 2009
Location:
Philly, PA
Posts:
26
Liked:
0 times
Default Pricing HELP!!!

I'm still new to this Embroidery biz, so please bear with me.

I'm having a pricing issue, I own a small gift shop, I do a lot of custom terry towels, monogramming, name drops, etc. I had a very small SWF 6 needle machine, that was rather old, it worked decent, but I couldn't really complain because I paid almost nothing for it, considering what machines go for. It was FAR from a production machine.

Anyway, my embroidery sector was growing, growing pretty well. So I decided to buy a brand new SWF 15-needle 4 head machine. I wanted to grow it, start to get the word out to some litte league teams, local businesses and stuff. Got it in, runs great. I started to solicit some local sports teams, businesses, and such.

Apparently I didn't do very good homework. There is an embroiderer in the next town over from me that is HUGE. He's pretty much got everyone around using him, colleges, school, uniform companies, sports teams. Just for the heck of it, I walked into their showroom, and I can't belive their prices! They are SO cheap. They've got a window in the shop that looks out into their production area. There has gotta be 1,000 heads in this place.

If I have to match their prices, I will never make any money. There were even a few things in there, that they were selling FINISHED cheaper than I could buy BLANK! To make it worse, they do flat rate embroidery, no per K.

They had REALLY nice 6 panel caps for $4 embroidered. Golf towels for $2.50!

I'm freaking out, I just dropped a TON of money on a new machine, and the biggest thing I have run through a 4 head is 12 pcs. How am I ever going to compete? I am I looking at the wrong places for suppliers? How are they so ridiculously cheap????

I'm totally panicing. Anyone have any input????
Send a private message to Tyrko ContactReply & Quote
Old March 20th, 2010, 12:37 AM   #2 (permalink)
Fattyonamoped Fattyonamoped is offline
Member
Join Date:
Apr 2007
Posts:
80
Liked:
0 times
Default Re: Pricing HELP!!!

I've been there with a singlehead. Find ur niche. Go after quality, then turnaround time, then price. People will pay for service. Shops that big treat everyone as a number not as a person. It's all about making connections. Throw in a hat or polo once in awhile to show the customer you appreciate their business, they remember that stuff. Give the customer a reason to spend more money.
Send a private message to Fattyonamoped ContactReply & Quote
Old March 20th, 2010, 05:44 AM   #3 (permalink)
Earl Smith Earl Smith is offline
Senior Member
Join Date:
Nov 2007
Location:
Germany
Posts:
140
Liked:
4 times
Default Re: Pricing HELP!!!

I agree with Fattyonamoped , find your niche. Dont loose faith in yourself. You are in a small gift shop in another town. Your customers will identify with you. Offer a fast and friendly service. When a customer wants to see a sample, then do it. If you can , do it right in front of them. Go out of your way to help them. Dont drop your prices or your quality, that is wrong. Your customers will be totally different from your competitions. You will do many, many small jobs and in one years time you will ask yourself why you were worried.
I have in my town a large competitor. In the two years I have been open I dont think I have lost one customer to them.
Be friendly , helpful and keep smiling.
Good luck.
Earl
Send a private message to Earl Smith ContactReply & Quote
Old March 20th, 2010, 08:01 AM   #4 (permalink)
Elle Elle is offline
Member
Join Date:
Nov 2009
Location:
China
Posts:
44
Liked:
0 times
Default Re: Pricing HELP!!!

I am feeling great when I read this thread as I seem have learnt something from it.
__________________
embroidered patches,embroidery digitizing,and more ... www.momols.com
Send a private message to Elle ContactReply & Quote
Old March 21st, 2010, 01:36 PM   #5 (permalink)
SunEmbroidery SunEmbroidery is offline
Senior Member

SunEmbroidery's Avatar
Join Date:
Dec 2007
Location:
New Jersey
Posts:
338
Liked:
15 times
Default Re: Pricing HELP!!!

I agree, continue what you are doing because it seems to be working. If you find a particular niche such as car clubs or fishing competitions that would be great.

I don't know how your shop is decorated but if you specialize in items that your competitor doesn't carry then you'll maintain your own following. Three vendors you may want to consider are:
http://designimports.com/, http://www.flyingcirclebags.com/ and http://www.pendergrassinc.com/ . Their products are really cute and different from the lines carried by the typical vendors so supplying these items might help you create your own unique customer following.

In reference to general supplier pricing, do you receive case pricing? Chances are that your competitor gets better than case pricing or has items manufactured but if you don't currently have case pricing ask your current supplier for it or switch to a supplier who will give it to you.
__________________
Jennifer

Custom Embroidered Polo Shirts with your logo

Embroidered Button Down Shirts no minimum
Send a private message to SunEmbroidery ContactReply & Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search


Similar Threads
Thread Thread Starter Forum Replies Last Post
pricing of new industrial embr. machines 1965 General Discussions 4 January 25th, 2010 12:24 PM
Help on Pricing Russell Embroidery and Digitizing 1 January 17th, 2010 12:40 PM
Pricing: Always an issue. reddog88 Embroidery and Digitizing 3 January 17th, 2010 12:32 PM
Pricing?? Worn Id Embroidery and Digitizing 11 November 17th, 2009 01:36 AM
SWFMESA Year-end special pricing on selected equipment NEW & Refurbished Machines Brad at MESA Old Embroidery Ads 1 February 13th, 2009 06:07 PM

All times are GMT -4. The time now is 11:59 AM.
Copyright © 2011 DigitSmith. All rights reserved.
Forums software by VBulletin, Copyright © 2000-2019, Jelsoft Enterprises Ltd.
Content Relevant URLs by vBSEO ©2011, Crawlability, Inc.