Machine embroidery has become quite popular these days, and if you are planning to set up an embroidery business, the charges and fees are one of the first things that you need to consider. There is huge competition in the domain of machine embroidery and you need to plan carefully before charging your customers. With careful considerations, you can keep your price on a par with your competitors and also avoid the problems of under or over charging. Here is how you should calculate the cost of embroidery work.
Think about the setup fee: First of all, you should consider suitable setup fee for each order. It should cover all your basic expenses related to thread, stabilizer as well as the time for manual setting up of the embroidery on your equipment. This commonly varies between 5 and 8 USD, and is charged by all embroiderers irrespective of the type of task that is handled.
Think about fees for letters: You will need to consider whether you wish to charge a specific amount for every name or for each letter that you embroider. The costs can vary between 0.5 - 1 USD for every letter in a whole name or the charges can also be a flat fee ranging within 8 and 10 USD per name. You can think of charging a minimum 3 USD per name, in case you wish to charge a specific amount for each letter. It would be charged apart from the setup fee.
Consider charges for the characters and pictures: You should also consider a specific charge for all the characters and pictures that you will embroider. This can be as per the total number of stitches needed to finish the project, and the rate is commonly 1 USD for every 1,000 stitches.
It is important to do some research and check what others are charging, to charge lower and make your fees competitive.