How to Price Embroidery Jobs Correctly (With Formula and Examples)

Pricing embroidery jobs can be challenging, especially when trying to balance fair pricing, profit margins, and market competition. Whether you price by stitch count, hourly rate, garment cost, or a combination, the goal is to create a formula that consistently covers your expenses and generates profit. Resources such as the guides from Madeira USA and YoPrint explain the fundamentals of embroidery pricing and why a formula-based method is best.

Additional tools and formulas can be found in this Maggie Frames pricing guide, and Thread Logic’s pricing article also provides real-world examples of how shops calculate embroidery costs.

Why a Pricing Formula Is Essential

Embroidery jobs vary in stitch count, density, garment quality, thread colors, hooping difficulty, stabilizer use, and machine time. Without a formula, it's easy to undercharge. Professional pricing strategies, like those discussed in this Echidna Sewing business guide, suggest using multiple variables to calculate a stable selling price.

You can also estimate production times using calculators from Melco’s time and cost tool. These calculations help ensure your final price compensates for both machine runtime and labor.

Basic Embroidery Pricing Formula

The most common industry formula is:

Price = (Stitch Count ÷ 1000 × Rate per Thousand) + Garment Cost + Labor + Markup

For example, if a design has 8,000 stitches and your rate is 1.20 per thousand stitches:

Stitch Price = 8 × 1.20 = 9.60

Then add:

• Garment cost
• Stabilizer, thread, overhead
• Labor or hooping time
• Markup for profit

This approach aligns with the methods discussed in this stitch-based pricing article.

Stitch Count Pricing Method

Most embroidery shops charge by stitch count because it reflects machine time. A common rate is between 1.00 to 1.50 per 1000 stitches. Some embroiderers on forums, such as this Reddit discussion, confirm that stitch-based pricing is widely accepted and easy to calculate.

Time-Based Pricing Method

Some shops price by machine hour. To do this:

• Calculate your machine’s hourly cost
• Include labor, electricity, maintenance, and depreciation
• Divide stitch count by your machine’s stitches per minute

This gives you the runtime per item. Tools like the calculator from Melco make this process easier.

Additional Factors to Include in Pricing

• Thread and stabilizer consumption
• Hooping difficulty
• Number of color changes
• Digitizing costs if applicable
• Rush order fees
• Specialty threads or materials

These recommendations match guidelines from multiple industry sources listed earlier, including Madeira USA and Thread Logic.

Example Pricing Calculation

Design: 12,000 stitches Rate: 1.25 per 1000 stitches Garment Cost: 4.00 Labor: 3.00 Markup: 20 percent

Step 1: Stitch Price = 12 × 1.25 = 15.00

Step 2: Add garment and labor = 15.00 + 4.00 + 3.00 = 22.00

Step 3: Add markup = 22.00 × 1.20 = 26.40

Final Price: 26.40 per item

Common Pricing Mistakes to Avoid

• Undercharging for labor
• Ignoring machine maintenance costs
• Not including digitizing cost
• Charging the same rate for hats and flat garments
• Offering discounts without calculating real profit

Conclusion

Correct pricing ensures your embroidery business remains profitable while delivering fair value to customers. Using formulas, calculators, and cost breakdowns helps maintain consistency and professionalism. The links and resources above provide more tools and examples to help you refine your pricing strategy.