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This revised and expanded edition commemorates the 10th anniversary of the embroidery industry's longestrunning pricing survey.
The first question raised at the Embroiderers Forum held at ISS Tampa in February had to do with pricing. As did the second question. And the third question, and so on, keeping our panelists and audience preoccupied with this one topic for 30 minutes, until we arbitrarily broke off the discussion to pursue other issues.
The interest in pricing shouldn't have come as a surprise. It is the No. 1 concern for the vast majority of embroiderers - not only newcomers but also shop owners who have been in business for a while and are updating their pricing structure based on the curtain competitive landscape and economic climate.
Embroidery pricing shouldn't be hard to figure. Nor should it be arbitrary. But as EMB's survey respondents reveal, numerous factors affect pricing and sometimes leave embroiderers scratching their heads. Our respondents indicate which of these factors are more important than others, providing you with criteria to apply to your own pricing that was too low. I often did not realize how labor intensive some jobs were."
The survey also sheds light on the special charges embroidery shops apply to more complex embroidery applications. And it offers a snapshot of the numerous value-added opportunines some embroiderers are tapping into to improve their customer service and bolster their bottom lines.
Whether you charge separately for these services or build them into your pricing, the advice the experts offer is to not give them away. "At Micro, the motto is: If we touch it, you pay for it," says Steve Mesiano, Micro Embroidery Punch Systems Inc., West New York, NJ,
To which consultant Frank Gawronski, president, Embroidery Educational Services Inc., adds: "Giving away something implies that it has no value."
There is some additional advice you may want to keep in mind as you study the survey results.
Deborah Jones, embroidery education director for Great Notions, Dallas, put it this way at a recent ISS Seminar: "Your pricing is paramount to your profitability." Gawronski expresses the same goal as a simple formula: "Selling Price = Your Cost + Profit."
Whether you're setting or updating your charges, the survey should provide...