How to Determine Charges for Machine Embroidery

Machine Embroidery
Machine Embroidery (Image: © Danny Hooks - Fotolia.com)

Machine embroidery is a popular hobby and skill. There are many people who enjoy doing machine embroidery, and there are many people who want to have names and initials embroidered onto items. If you are considering an embroidery business, one of the first things to consider is fees and charges. Because of stiff competition in the machine embroidery field, it is wise to think carefully about what you charge. You need to avoid undercharging and overcharging; and you need to have prices that are comparable with your competitors. Learn how to determine charges for machine embroidery before you begin a machine embroidery business.

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Consider determining a fair and appropriate setup fee for all machine embroidery orders. This fee will cover basic costs of stabilizer, thread, and the time it takes you to manually set up the embroidery job on your machine. A common setup fee is $5 to $8. This is a base fee that will be charged for all of your customers regardless of the embroidery job.

Determine whether you want to charge a certain amount per letter or if you will charge a certain amount per whole name. Some machine embroiderers charge 50 cents to $1 for each letter in a name, and others charge a flat fee of $8 to $10 per entire name. If you decide to charge a certain amount per letter, consider instituting a minimum charge per name (such as $3).

This charge would be in addition to the setup fee.

Decide how you will charge for pictures and characters that you embroider. A common way to charge for embroidery of this kind is to charge by the number of stitches necessary to complete the embroidery image. Some machine embroiderers charge $1 per 1,000 stitches.

This charge would be in addition to the set up fee that you charge all of your customers.

Make a price list for items you provide for your customers, if you plan to offer this service. If you will make available items for them to purchase for embroidery (such as towels, pillowcases, and napkins) know what you paid for these items and mark them up a few dollars so that you can profit.

Do your research before you finalize your rates. Find out what other comparable machine embroiderers are charging so that you can be competitive.

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