Every month I get several emails that ask "How much should I charge for my embroidery work?" Today I got another one and thought I'd share this with you.
First the email...
"Larry, we are kinda new at this, but we purchased 2 BMP6 Baby Lock machines and we are in business but I still feel insecure in pricing. Do you have any suggestions on how much to charge for our services? We are in a small community and people here does not realize what is involved in doing embroidery. If you can, please advise on some pointers on how we should charge."
And my response...
Same thing everywhere! People don't realize what's involved in embroidering their whats-it until you tell them the price. If you are the first person they ever talk to about the cost of doing something for them it will probably come as a shock to them and they won't buy. Eventually they will talk with other people and find out the price is pretty similar then they can decide to do it or not.
You'll lose some of those sales but you'll pick up others where you are the 2nd or 3rd person they've talked to and it starts to sink in that it's not a $1 job to "just add my name" to a garment.
Pricing. There are 2 methods. One is the right way and the other is the wrong way.
What do other people charge? -- wrong way!
What does it cost to run my machine, buy supplies, pay electricity, pay off machines, pay for my time, and return a profit per 1,000 stitches? -- Right way!
I have a calculator on my site that walks you through the process. It's a members-only tool located at this page... http://www.artisticthreadworks.com/members/392.cfm
Here's what's covered in the article and the accompanying calculator...
"Cost Analysis Worksheet
Many people start with embroidery as their hobby, then a friend asks them to do an embroidery job for pay... and they're off-and-running! (30% of pros started with a home machine) How much should you charge? This article answers the question of "What's the right amount" for you!
Talk with a "good" accountant and tax specialist before you make decisions and spend money. (More on what's a "good" accountant in a separate article.) There are some important questions to answer before you commit to anything, and an accountant can help you with those questions!
NOW: On with "How Much To Charge"... (and so on...)
If you're a member, just click in and use the calculator. It will walk you through all the steps to determine the amount you should charge.
-- Larry