Embroidery pricing

Embroidery pricing

Traditionally embroidery companies use a stitch count vs quantity matrix to set the price they charge for embroidery. Prices are defined in an embroidery price table based on number of stitches and number of products. WilcomWorkspace lets you choose whether to configure your digitizing price alone and/or production price. Production price setup has some basic price table validation logic. Charges for each additional 1000 stitches should increase while cost per 1000 stitches should fall as quantity increases. Consider these factors affecting embroidery pricing...

Factor
Description
Setup
Each job no matter how small involves setup and handling. This is usually a fixed cost. It does not generally vary by quantity and can include such things as order handling, machine setup and teardown. WilcomWorkspace has a setup field where you can specify what price you want to charge by quantity break.
Digitizing cost
  1. Wages
  2. Cost of software
  3. Running costs
  4. How many stitches can be digitized in an hour
  5. And work out an hourly rate
Quantity
The number of pieces dramatically affects cost as there are many fixed costs that need to be spread across the pieces. These include order processing, purchasing, job set up, etc. Also different quantities may mean different machinery or sub-contracting options. WilcomWorkspace knows Quantity so this is factored into the pricing scheme by including setup charges and quantity breaks.
Stitch count
Embroidery machines have a maximum stitch rate so stitches can be seen as a variable cost. WilcomWorkspace knows the Stitch Count for existing designs and this is automatically factored into the pricing scheme. For new designs an estimate must be provided. For low volumes the accuracy of the estimate is not critical as the handling and setup costs are the largest cost factor. For higher volumes, it is more important and you should be prepared to provide a higher accuracy estimate or more information so an accurate estimate can be made by the system. WilcomWorkspace allows you to create as many stitch breaks as you require.
Job type
Cap, shirt, jacket, badge etc, all impact on the hooping time and potentially on the job setup time. If the machine is set up for caps and a shirt job is next, the frame will need to be changed. If you feel it justified, you may want to set up special price tables for certain job types – e.g. caps.
Fabric
The maximum speed a job can be run is dependant on the fabric. Fabrics may not be the same for all panels of a garment or the same for all colors in a style. WilcomWorkspace allows you to set up special price tables for specialized fabrics. During order entry the sales person can select alternative price tables – e.g. for leather jackets.
Location
The embroidery location affects hooping time and potentially machine speed – e.g. across join on a cap. You can, if required, set up special price tables for difficult locations.
Colors
The color count has a dramatic effect on running time. A machine has a finite number of colors loaded per head. If a color is not available, the operator has to load it before the job can commence. It also takes a certain time for a machine to switch colors. There is an associated thread-break risk with each color change. Generally, if you analyze your embroidery designs, you will find a relationship between number of colors and number of stitches, and this can be built into the price table. If you want to add a special color charge, you could add a new item to your accounting software and manually add this to the order.
Special processes
Sequins, boring, appliqué, etc, all increase the time a job takes to run. You could set up special price tables for these or special charge items in your accounting software.


Price tables

A price table is a structured listing of pricing information for use with the Estimator app. This app is used to generate accurate estimates. The Price Table page in Wilcom Account Management allows owners to view and edit the Estimator price table. The page can also be accessed via the Estimator app itself. 

Notes...

  1. Only the owner has permission to edit price tables.
  2. Any modifications made by the owner are immediately reflected for all members.
  3. Members are restricted to view-only access and cannot edit any pricing settings.
  4. The owner can access price table settings without the Estimator app.
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