Going BROKE selling t-shirts
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Are you having trouble pricing your embroidery work or you're not finding success with the stitch count method? In this episode of Apparel Academy, Henry breaks down exactly why the stitch count rule is not the best way to price your work. He’ll also tell you what to consider when pricing your work and which pricing method you should use instead. If you want to know the superior embroidery pricing method, make sure to watch this video until the end! Check out the profit calculator here: https://ift.tt/3x5nQiO If you want to see more excellent custom apparel and personalized garments, check out our Facebook group, Embroidery and Custom Apparel Mastery: https://ift.tt/3srQdV7 Follow us on Instagram to view more great videos and tutorials featuring custom apparel masterpieces that you can make from home: https://ift.tt/3pSZMea Join the Ricoma newsletter for educational blogs, videos and live webinars: https://ift.tt/2WgenV5 Get our latest Ricoma embroidery YouTube videos sent straight to your Facebook Messenger: https://ift.tt/2ZaCXIJ Timestamps 1:26 – What is the stitch count rule? 2:05 – No pricing method is perfect 3:21 – There is no perfect way to set pricing because every business is different. 4:49 – Why you should use the time-based formula. 5:27 – How does the time-based formula work? 8:06 – Profit calculator Let’s first go over the stitch count rule. This rule of thumb says that you should charge a certain amount for every 1000 stitches in a design. Many people use the stitch count rule because it’s convenient, but it’s not the best way to price your embroidery. It doesn’t consider the time it takes to complete a design or the complexities and variations of a design. Continuing to use the stitch count rule can lead to underpricing your work, which can cost you money in the long run. Instead, it would be best to price your work based on the time it takes to do the job. Time-based pricing is better than stitch count pricing because it takes into account the complexity of specific jobs. To determine how much you should charge a customer, you first want to figure out your target profit per hour. Step two is to calculate how many items you can produce in a given hour. Once you know that, divide your ideal hourly profit by the number of items you can make in an hour. This will tell you how much you need to profit on each item to hit your target hourly profit. Once you know how much money you need to make on one item, add the cost of materials and a little extra for profit margin. The sum of that is the cost per item you would charge your client. And that’s it! So whether you are a newbie embroiderer or a long-time business owner, we hope you find this formula more accurate to price your embroidery work.
Going BROKE selling t-shirts
