Is $ 1.00 cdn/1000 stitches still a good price to charge for small quantities in embroidery?
Yes, $1.00 CAD per 1,000 stitches is generally a good price to charge for small commercial embroidery orders, especially those under 48 items. However, for very small orders, a per-stitch rate might not cover your overhead costs and you might need to adjust your pricing strategy.
Standard Pricing for Small Orders
The industry standard for commercial embroidery pricing often falls between $1.00 to $3.00 CAD per 1,000 stitches. This rate can vary based on several factors:
Design Complexity: Intricate designs with many color changes or specialty threads (like metallic or neon) typically cost more per stitch.
Item Type: Embroidering on challenging items like hats, jackets, or bags can increase the price compared to a flat t-shirt.
Thread Colors: While many shops include up to 6 thread colors in their base price, adding more can incur extra charges due to the time required for machine rethreading.
For a small, standard logo (e.g., a left-chest logo with 4,000 stitches), the embroidery cost would be around $4.00 at a rate of $1.00 per 1,000 stitches. This is a very competitive price, but you’ll need to ensure it’s profitable for your business.
Orders from 1 to 10 Items
For orders of 1 to 10 items, a per-stitch rate may not be the most profitable or fair pricing model. The time it takes to set up the embroidery machine, hoop the item, and run a single-item job often outweighs the revenue from a low stitch count. 🧵
For these very small orders, consider these alternative pricing methods:
Minimum Order Charge: Implement a flat minimum fee to cover your setup time and costs. This ensures you’re profitable even on a single-item order. For instance, you might have a minimum charge of $15.00 to $20.00 CAD for any order under a certain quantity or stitch count.
Flat-Rate Pricing: Instead of charging per stitch, charge a single, fixed price per item for a standard logo. For example, a flat rate of $12.00 to $18.00 CAD per item for a small, simple logo on a polo shirt can simplify quoting and is generally fair for small orders.
Tiered Pricing: A combination of the above, this model offers a higher per-item or per-stitch price for small quantities, and the price decreases as the order size increases. For example:
1-5 Items: $2.00 per 1,000 stitches
6-20 Items: $1.50 per 1,000 stitches
21+ Items: $1.00 per 1,000 stitches
This approach provides a fair price for low-quantity customers while encouraging larger orders with volume discounts.