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minute, that equals 13 stitches per second. Each thread trim will take about 5 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. Another point to consider is that Metallic Gold usually costs three times more than rayon thread, plus its harder to work with. You may need to have a surcharge for using Metallic. When sewing appliqués, there is more to consider besides stitch count. How much downtime is incurred when you stop the machine to apply the fabric? Also, don't forget the cost of the appliqué material. On one design that we sew, the fabric appliqués are pre-cut for us by another firm for $1.00 each.) However, if you have to cut the material yourself, don't forget to account for this in your job pricing. 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. That covers the basics for stitch count pricing, now lets look at garment pricing. If you are going to supply the apparel for an order, then you need to make money on it, separate from your embroidery charges. How much you mark it up will depend on your type of business. If you are strictly a retailer, then you should consider a minimum mark-up of 100 percent. And if you take credit cards, don't forget that they will take a small percentage of each sale, so make sure you compensate for it. On the other hand, if your business is geared towards corporate and/or wholesale, then garment pricing becomes a little bit more complicated. For this type of market, you probably can't add on more than 25% to 50% above your cost. In addition, you will need to set-up price breaks based on quantity. Deciding how much and what quantity is not nearly as scientific as stitch count pricing. However there are several factors to consider. First of all, review the quantity price breaks that your distributors offer. This might give you a good starting point. Also, check in to any minimum size ordering requirements. If your customer only wants 4 caps, and you have to buy a minimum of twelve, then make sure you charge enough to cover the cost of the unused caps that you are stuck with. Better yet, set-up your own minimum order size. Second, check into www.hsi.us care@hsi.us 148

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