Thinking of Starting a Business

digitizing.sgi-int.com · July 2nd, 2009, 07:52 AM

Not Necessarily. There is a lot of quality work done via internet with little or no communication gap. When you have got phones emails and other tools, i do not think that the costs saving is not worth a try. Our customers are very satisifed with us even we are working overseas.

So it all depends on company to company. Some are working from home and have not got the real expertise of running a business.

eltri · July 17th, 2009, 12:51 AM

Hi Eric,
Very Interesting your comments, I'm planning to start an Embroidery business but I am not sure if I can start making money with a single Head machine, If i bought the machine I would go for a Tajima TAJIMA NEO2-TEJTII-C1501 (any other suggestion are welcome) Could you please describe with simple numbers the profit i would get ding Polo t-shirt for an example a polo could cost $10.00 with a logo for 10,000 stichs so that could cost $5.00 so could I sell a embroidery Polo for 25? so the profit would be $10 per Polo. Or what would be the profit in % of the sale price. Maybe this could not be a easy question, what would be the estimate or aprox Profit using a single head machines per week or a month.
Thank you very mucho for you feedback

twok4hd · July 17th, 2009, 08:17 AM

Eltri, I am not following your numbers here. If you by the shirt for 10.00 and sell it for 25.00 after you embroidery it, that would be 15.00 profit per shirt. Did I not read something right?

If the logo is 10,000 stitches, I would charge at least 7.00 (Possibly more) per shirt for the embroidery. Got to remember, that the machine has to produce so many $ per hour to cover your overhead. A 10,000 stitch logo takes a minimum of 10 minutes if you are running the machine at 1000 spm. Then you have to factor trims and color changes depending on the logo. We just did some shirts that had a logo under 4000 stitches and it took 8 1/2 minutes to run it because of all the trims and color changes. I could see a complex logo of 10,000 stitches taking 12 to 14 minutes or more. At that pace the most you could do is 4 shirts in an hour, IF you don't have any other problems. So I figure that would be 60.00 per hour. We average 80.00 to 100.00 per hour when doing shirts on our single head. That is for the markup of the garment and the embroidery cost. Most logos that we have done are under 5000 stitches and usually average 5 to 6 minutes run time.

We run an Barudan Elite Pro II and it is a real workhorse.

Good luck

yourdigitizer · July 17th, 2009, 10:47 AM

if you need a cheaper quality digitiser, you can drop me a line and we will send you the disc within 24 hours and get response within 16 hours, my email is [email address]

. Thank you.

Eric · July 20th, 2009, 03:27 PM

Hey there Eltri ... Sorry for the delay, Just getting back from Vacation.

I'm not going to be horribly redundant, because two4hd pretty much nailed it.

You have SO many factors going on here. The answers to all of your questions are a definite maybe. lol

I am going to assume you are going direct to RETAIL? Meaning you buy a "blank" embroider it, and sell it direct to a consumer? With that being said, it dpends on your market. Some places can get $20 or $30 for a cap, Others could only dream of that.

Wit that said:

There are a MILLION pricing stragegies. I am a wholesale & retail embroiderer. Unlike a lot of people in biz I very very very rarely do contract. I am a supplier / embroiderer. Meaning I make money on the garment as well as the embroidery. Typically anything under 10,000 stitches, which is MOST logo's I charge $1 per thousand, PLUS the markup of the garment.

Typically speaking good embroiderers make $100 an hour per head. Sometimes its more, sometimes less. However, thats your target number. Where you run a single, it may be a little less, just cause of the "turn time" and doing a lot of one-offs and two-offs KILLS your profits real fast. Hence why the price of onesies and twosies are astronomical.

You have to stay around your competition. I love selling Caps, because I buy them direct from india, and pay about 60 cents each, and I sell them $8 to $20 bucks each, depending on if its wholesale, or direct to retail.

Hope this helps.

SkyLinePrints · July 21st, 2009, 08:52 AM

Quote:

Originally Posted by Eric

Hey there Eltri ... Sorry for the delay, Just getting back from Vacation.

I'm not going to be horribly redundant, because two4hd pretty much nailed it.

You have SO many factors going on here. The answers to all of your questions are a definite maybe. lol

I am going to assume you are going direct to RETAIL? Meaning you buy a "blank" embroider it, and sell it direct to a consumer? With that being said, it dpends on your market. Some places can get $20 or $30 for a cap, Others could only dream of that.

Wit that said:

There are a MILLION pricing stragegies. I am a wholesale & retail embroiderer. Unlike a lot of people in biz I very very very rarely do contract. I am a supplier / embroiderer. Meaning I make money on the garment as well as the embroidery. Typically anything under 10,000 stitches, which is MOST logo's I charge $1 per thousand, PLUS the markup of the garment.

Typically speaking good embroiderers make $100 an hour per head. Sometimes its more, sometimes less. However, thats your target number. Where you run a single, it may be a little less, just cause of the "turn time" and doing a lot of one-offs and two-offs KILLS your profits real fast. Hence why the price of onesies and twosies are astronomical.

You have to stay around your competition. I love selling Caps, because I buy them direct from india, and pay about 60 cents each, and I sell them $8 to $20 bucks each, depending on if its wholesale, or direct to retail.

Hope this helps.

the other thing not mentioned or at least, i missed it, beyond the run time is the turn around time. (hoop, unhoop, cut backing, set the thread on the machine for the design, load the design, set the color sequence, etc...). all of this eats into the profit area. the onsie, twosies absolutely kill your profit model.

customer comes in your store and wants one shirt (could be 12 shirts. same rules apply). garment cost, run time, setup time, take down time, customer interface time, shop overhead = cost (sale price - true cost = profit)

Eric · July 22nd, 2009, 10:09 PM

Yes indeed ... Good Point Nathan!

Forgot that one!

Stitchitintl · July 23rd, 2009, 01:36 PM

Something that you need to look at is turn around time. If for example you buy a single head then you are going to have a very long turn around time for a job of 300 pieces or so. I have been in this business for a long time and you can't really make "good money" with just a single head.

If you try to do a 300 piece order with 5000 stitches on a single head running at 800 stitches per minute (a comfortable speed) it will take you approximately 7 minutes with your change out time. So if your doing a run every 7 minutes then you can do 8 runs per hour. That is approx. 64 runs in an 8 hour day. At that rate it will take you almost the whole week to do that job. Not a very quick turn around time for a job of 300 pieces. And it seems like one of the selling point for Retail is turn around time.

Now if you take a two head you will cut that time in half.