Pricing is where embroidery businesses succeed or quietly fail. Charge too little and you work for free; charge randomly and you lose jobs you should win. This guide gives you a clear formula and examples so you can quote with confidence and actually make a profit.
The Core Pricing Formula
A reliable starting point is: Price = (blank cost + materials + labor) x markup. Break it down like this:
- •Blank cost — what you pay for the garment or item.
- •Materials — thread, bobbin, stabilizer, and backing for that piece.
- •Labor — your hourly rate multiplied by the time to hoop and stitch the design.
- •Markup — typically 2x to 3x to cover overhead and profit.
Account for Stitch Count
Embroidery is priced largely by stitch count, because more stitches mean more thread and more machine time. Many shops charge per 1,000 stitches on top of the blank. A small left-chest logo might be 5,000 to 10,000 stitches; a large back design can exceed 50,000. Knowing the stitch count before you quote is essential — SewFlow shows you the stitch count for every design as you convert it.
See the exact stitch count for any design before you quote:
Open the Converter →Charge a Digitizing Fee
Turning a new logo into a stitch file takes time and skill. Most shops charge a one-time digitizing fee per new design ($15 to $50 is common), then a lower per-piece run charge for repeats. Because SewFlow lets you digitize for free, this fee can become pure profit — or a competitive advantage if you choose to waive it on larger orders.
Worked Example: Left-Chest Logo Polo
| Line Item | Cost |
|---|---|
| Blank polo | $8.00 |
| Thread, bobbin, stabilizer | $1.50 |
| Labor (10 min at $30/hr) | $5.00 |
| Subtotal | $14.50 |
| x 2.2 markup | $31.90 |
| Suggested price each | $30 - $34 |
Offer Bulk Discounts (the Right Way)
Volume orders take less setup time per piece, so you can lower the per-unit price while increasing total profit. Set tiered pricing — for example, 1 to 11 pieces at full price, 12 to 49 at a small discount, and 50+ at a larger discount. Never discount below your true cost just to win the job.
Do Not Compete on Price Alone
There is always someone cheaper. Compete on quality, turnaround, and service. Underpricing trains customers to expect bargain rates and makes it nearly impossible to raise prices later.
Common Pricing Mistakes to Avoid
- •Forgetting to pay yourself for hooping and finishing time.
- •Ignoring wasted blanks and thread from mistakes.
- •Not charging for rush jobs or complex placements.
- •Quoting before you know the stitch count.
- •Matching a competitor's price without knowing your own costs.
Price from your real costs, factor in stitch count, charge for your expertise, and protect your margins. Do that consistently and your embroidery business will be sustainable — and genuinely profitable — instead of an expensive hobby.