Issue link: https://docs.hic.us/i/403552
seconds which equals 65 stitches, and each color change (including trim) takes approximately 10 seconds which equals 130 stitches. So on a design with 10 color changes, you need to add 1300 stitches to the actual total to cover color changes. Once you calculated your sewing charge, should you always stick with this number when pricing a job? No. First of all, you should have a minimum charge for anything that you do, regardless of the stitch count. Second, your calculated stitch charge should be considered as your "best price". In this business, people expect a discount for larger orders. Therefore, you need to decide at what quantity you will offer your best price, and then charge higher prices for smaller sized jobs. Third, you should thoroughly analyze each job for any special difficulties, such as a difficult hooping application, that will increase the time needed to finish the job. You can use the Cost Per Hour figure that was part of our previous calculations, rather than the stitch count pricing to estimate the price for unique and difficult work. This is referred to as the widgets per hour system. If the cost per hour is $30.00 and you can produce six items (on a specific order) per hour, then the cost to produce each one is $5.00, regardless of stitch count. Now add in the cost of the garment and you know the total cost to produce each item. From there you add in a fair markup and you're done. You identified the cost and ensured that you had a markup that would create a profitable price. NOTE: More on pricing will be discussed in Chapter 12. Also refer to Attachment K for a Sewing Cost Analysis Worksheet Develop And Maintain A Logical Business Plan The Business Plan was discussed in Chapter 3. But there is a another factor that should be emphasized here. Many entrepreneurs create a business plan with the sole intent of borrowing money to start their business. Once they obtain the necessary funds, the plan gets filed away and forgotten. This is a bad decision. The business plan is an integral part of your business and should be treated as such. In fact, it should be referenced on a regular basis to compare how your business is faring against the predictions in the plan. Your business plan is a roadmap to be followed, not discarded. If you choose to ignore it, there is a good chance that your business will lose direction and flounder about aimlessly, instead of growing and generating the desired profits. As part of the "ongoing" business plan, you should set goals in three year cycles. As these goals are achieved, set new ones. If your business takes a different direction, then update the plan to reflect that. Your business plan is important, so treat it as such. www.hsi.us care@hsi.us 75