How To Charge for Machine Embroidery

Pricing by the hour is a rookie mistake. Seriously, you’re not just stitching away mindlessly here; you’re creating art. So why charge like a machine operator? The truth is, your time should reflect the complexity of the project, not just the minutes you spend running the machine. A seasoned pro knows that a 20-minute design could be worth far more than a 60-minute one, depending on the stitch count and intricacy. If you're charging by time alone, you're cutting yourself short.

For example, let's talk about a standard embroidered logo. A simple logo can take 10 minutes to stitch, but if it requires 15,000 stitches or more, it’s going to take up valuable thread and machine time. Now, factor in the thread cost, which can vary based on color and type, plus the overhead like electricity, maintenance, and wear on the machine. Still pricing by the hour? Big mistake.

Now, when we dive into stitch complexity, we see a whole new level. A dense design with 20,000 stitches could take double the time of a 10,000-stitch piece, not to mention the additional thread needed. This isn’t just a tiny increase in price—it’s a game-changer. If you're charging flat rates without factoring in these elements, you’re basically giving away your skills for peanuts.

Let’s get real for a second: Are you tracking costs per project meticulously? If you're not calculating material costs (thread, backing, stabilizer), you're doing it wrong. You’re running a business, not a charity. I’ll break it down: A spool of quality embroidery thread runs about $4, and depending on the project, you could use half a spool or more. That’s a material cost you can’t ignore. If you’re working on a bulk order, you need to factor in quantity discounts and adjust your pricing accordingly. After all, no one works for free, right?

Here’s a kicker—your machine time. Let’s say you're using a commercial-grade machine that costs around $5,000. Spread over 1,000 hours of use, that’s $5 per hour just in depreciation. Add in power consumption, maintenance, and repairs, and your machine costs should be a part of the formula. Charging per project rather than by time will save you from making a loss. Do you really think a $10 charge for a 50-minute project with complex stitching is going to cut it? You’ll be lucky if you break even.

In short, stop pricing blindly. Every stitch, every minute, every material cost should be calculated carefully. Once you’ve got your formula down, don’t forget to adjust it as your expertise and reputation grow. Charge what you're worth. You’re not just selling a service, you’re selling the product of years of practice, skill, and artistry.

Underselling yourself is the fastest way to fail in this industry. Seriously, why sell for less when your skills are worth so much more? When you price your work low, you're telling your customers you don't value your time, experience, and expertise. That’s not just bad business—it’s plain foolish. The reality? People value what they pay for. Price yourself like a pro, and you'll attract the high-paying, long-term clients you deserve.

For instance, consider a multi-head embroidery machine setup, like the 10-Head Embroidery Machine. These machines can cost anywhere between $15,000 to $50,000, depending on the features. But here's the kicker: you need to factor that into your pricing! You’re using top-tier tech to make custom apparel, not running a lemonade stand. Do you think these machines are cheap? Exactly. They aren't. So stop underpricing your services.

Also, experience matters. If you’ve been in this game for 5, 10, or even 20 years, your pricing should reflect that. Charging $10 for a logo when you're an expert is laughable. Your experience adds value. You’re saving clients time and headaches by getting it right the first time. That’s priceless, my friend. Pricing low is like throwing your hard-earned skills in the trash. The longer you’ve been at it, the higher you should charge.

Ever considered how much you're actually delivering with your embroidery? Think beyond the basic "just stitching" approach. With machine setups like the 6-Head Embroidery Machine, you're not just printing logos—you're producing high-quality, detailed designs in bulk. Each piece you create has immense value. If you’re not pricing to match that, you're doing it wrong. It’s time to show your worth.

And don’t fool yourself into thinking that underpricing will attract more clients. That’s the biggest myth in the industry. When you charge lower than you should, you’re attracting bargain shoppers who only care about the price. These aren’t the clients who are willing to pay top dollar for your superior skills. High-paying clients will appreciate your premium pricing—they’re buying quality, not cheapness. Be bold with your pricing, and those who truly appreciate your craft will be there.

Every stitch costs you money. Machine depreciation isn’t a joke. A commercial embroidery machine like the 12-Head Embroidery Machine can run anywhere from $30,000 to $70,000, depending on the model and features. Spread that cost across hundreds of orders, and suddenly that $70,000 machine doesn’t seem so expensive anymore. But here’s the catch—if you’re not factoring in machine depreciation into your pricing, you’re essentially working for free!

Let’s break it down. A high-end machine like this could last for around 5,000 hours of embroidery. With $70,000 on the line, that’s $14 per hour just to cover depreciation. Add in maintenance costs (around $500 per year), and you're now at $15 per hour. Are you including this in your rates? If not, you’re eating those costs, not your client.

And then, there’s your thread and material costs. The best thread, like the high-end polyesters used in commercial-grade machines, costs about $2 per spool. For a typical design with 15,000 stitches, you’ll use around 1/3 of a spool. This means you’re looking at roughly $0.70 per design just for the thread. Throw in stabilizers, backings, and the fabric itself, and you’re already pushing $3 to $5 per project in material costs. Why aren’t you factoring this into your pricing? If you don’t, you're just throwing money away!

Let’s not forget labor costs. You’re not just a machine operator—you’re an artist, a technician, and a manager all rolled into one. Your time isn’t free. If you’re running a 6-head machine like the 6-Head Embroidery Machine, you’re likely spending time not only stitching but also troubleshooting, designing, or planning. Your hourly rate should reflect that experience. If you’re paying yourself $50 per hour and you’re working 4 hours on a design, your labor cost alone is $200. Don’t forget that in your pricing!

Now, factor in overhead—stuff like electricity, rent, and even the cost of running a computer to digitize the designs. A small commercial embroidery shop might spend around $200 per month just on utilities. Break that down by the number of orders you complete, and suddenly you’re looking at a significant chunk of your pricing being swallowed by things like power bills. Ignoring that is a rookie mistake. These are your costs, and they matter.

If you’re still charging based on the bare minimum without considering all these factors, you're just leaving money on the table. Seriously, it’s time to take your business seriously and charge accordingly. When you start incorporating depreciation, material costs, labor, and overhead into your pricing, you’ll be amazed at how quickly your profits rise. So what are you waiting for? Start pricing like the professional you are!