How To Charge for Machine Embroidery Work

Let's get one thing straight: If you're not counting every cost down to the thread you’re using, you’re leaving money on the table. This isn’t a hobby; it's a business. First, **overhead** costs are the bread and butter. You’re using supplies—thread, stabilizers, needles—and even **electricity** is a hidden cost. For example, a single spool of quality thread may cost $10, but you could be using $1-2 worth of thread per design. Make sure you’re pricing to reflect these costs, or you’re working for free!

Don't forget the **wear and tear** on your equipment. If you think your machine lasts forever, think again. A multi-needle embroidery machine can cost anywhere from $5,000 to $15,000, and if you don’t factor in its depreciation, you’re kidding yourself. Over 5 years, you should be planning to set aside a portion of your income to replace or repair your machine. The average embroidery machine requires maintenance every 1,000 hours, so that’s a lot of time to calculate into your cost model.

Now, let’s talk **labor**. If you're pricing based on time alone, you’re missing the boat. You’re not just charging for the hours spent running the machine; you're charging for your **skill** and the **expertise** you've built. The average wage for an embroidery operator is $15-20 an hour, but as a skilled business owner, you should be charging significantly more than that, depending on the complexity of the work. Factor in overhead and taxes, and make sure you’re **paying yourself properly**.

Here's where it gets fun: you want to charge at least 2-3 times your **hourly wage** to account for all the hidden costs. So, if you want to make $30 an hour, you're looking at a rate of $60-90 per hour for your client. Don’t get caught undercharging just to stay competitive. That’s a race to the bottom—and trust me, you don’t want to go there.

Final tip: Keep a close eye on all your **expenses** and be ruthless about tracking them. Whether it's **materials**, electricity, or machine upkeep—keep records of everything. Over time, this data becomes gold. You can adjust your rates, evaluate your profit margins, and fine-tune your pricing strategy. If you’re serious about your business, treat every cost like it matters because, frankly, it does.

Here’s the deal: charging by the **thousand stitches** isn’t just a suggestion; it’s the backbone of your pricing strategy. The trick is calculating your rate based on real production time. If you’re undercharging, you’re practically giving your work away. For example, a design with 10,000 stitches could take 15-20 minutes on a machine like the 12-head embroidery machine, but only if you're efficient. Let’s say you’re paying $15/hour for labor—if your machine runs for 15 minutes, that’s about $3.75 for labor alone!

Next up, complexity. A simple logo isn’t going to take the same time as a full-color custom design. Intricate designs or multi-colored patterns require more **thread changes**, **thread trimming**, and **adjustments**, all of which eat into time. For a complex design with 15,000 stitches, you’ll need to adjust your price to reflect this extra effort. The trick? Multiply your base rate by a complexity factor, which can range from 1.2 to 1.5 for more complex work.

Let’s break it down: your rate per thousand stitches should be calculated by factoring in **labor**, **material costs**, and **time**. A solid base rate is typically anywhere from $0.75 to $2.00 per 1,000 stitches, depending on your location and machine speed. If you’re running a **high-end machine** like the multi-head flat embroidery machine, you’re going to be faster and more efficient, so you can afford to charge a premium price. If the design is ultra-detailed, don’t hesitate to go higher—your expertise and equipment justify it.

Here’s the kicker: Don’t let clients talk you down. They can go to a competitor, but they’ll soon realize they can’t get the same **quality** and **speed** that you provide. Stay firm with your pricing model. If you’re too cheap, they won’t respect your work. If you're too expensive, they might shop around, but it’s all about finding that sweet spot.

Finally, for those quick jobs or repeat business, consider offering **discounts for bulk orders** or long-term clients. For instance, if you’ve got an order of 10 shirts, you might cut your rate by 10% to build the relationship, but never drop below what you need to cover your expenses. **Value is everything**, and your clients will learn to trust your pricing once they see the results.

If you're not charging for **custom digitizing**, you're leaving money on the table. This is a **premium service** that requires specialized skill, and it’s time-consuming. For example, a basic logo might take an hour to digitize, but a detailed, custom design can take up to 5 hours. Don’t even think about offering this without a price tag—standard digitizing fees range between $25 to $100, depending on complexity. Add that into your rate, or risk underpricing yourself.

Now, let’s talk about **specialty threads**. You’re not using basic polyester threads for every project, right? For designs using **metallic**, **puffy**, or **glow-in-the-dark** threads, you should be adding an upcharge. These threads cost **way more** than your standard spool, and they’re trickier to work with. A spool of metallic thread might run $10, compared to regular thread at $2. Just like any premium material, these threads demand a premium price. Make sure your client knows they’re paying extra for this unique flair.

Don't forget about the **setup fees**. Whether it’s your **time**, **design preparation**, or **machine adjustments**, those first few minutes count. A basic setup for a standard project might only take 15 minutes, but that’s still time and effort you’re putting in. Some embroidery shops charge anywhere from $15 to $50 for setup, so **don’t let anyone talk you out of it**. When you’re ready for large orders, setup fees are even more crucial, especially if you're dealing with multiple designs. Ensure your clients understand that it’s not just about stitching—it’s about getting everything in place to make it happen.

Here’s a trick for the pros: **rush jobs**. Need it done fast? That’s gonna cost more, and it should. Rush fees are typically 25-50% of the regular price, depending on how quick you’re expected to turn things around. Clients who need their orders in 24-48 hours need to be charged for the inconvenience. A shirt order that would normally cost $5 each may bump up to $7.50 when a client wants it done tomorrow. Charge that extra fee like you’re running a **high-demand** factory.

And remember: **minimum order fees** aren’t just an option—they’re a necessity for small runs. If you're doing a single shirt or a set of custom hats, you can’t afford to work at a loss. For example, a minimum order might be $50, even if the client only wants a couple of pieces. That ensures you’re covering your time, materials, and setup. **Don’t feel bad** about implementing this; it’s a standard in the industry.

Here's the bottom line: pricing with **extra fees** is not a “nice-to-have”—it’s a game-changer. Whether it's digitizing, special materials, rush orders, or setup, these charges are **essential** to your bottom line. Make your fees clear from the get-go and watch your profits climb. As the greats say, “if you're not charging enough, you're **working for free**.”

What’s your take on these extra charges? Have you experienced pushback from clients when implementing them? Drop a comment below and share your thoughts! Feel free to share this if you think others need to see it!