Price your embroidery with a pricing matrix based on cost of item
Pricing your embroidered apparel with a pricing matrix allows you to increase your profit percentage on lower cost items such as t-shirts and baseball caps. The matrix will allow you to say price competitive on higher cost products such as North Face Jackets. An example is when you sell a t-shirt for $8.00 (cost is $2.00) you are making 75% margin($6.00 /$8.00) *100 = 75%. You are making a high profit percentage on this t-shirt.
North Face Jacket Margin Scenario
Let's look at the North Face Jacket that you sell for $90.00 and the cost is $50.00 you are making a 44% margin. ($40.00/$90.00)*100 = 44%. You are making a $40.00 profit which is way more than the $6.00 profit on the t-shirt with a margin of 75%.
What if we kept the same margin as the t-shirt?
You wouldn't be price competitive if you sold the North Face Jacket at a 75% margin. $50.00/(1-.75) = $200.00 selling price. You need to have different margins based on the cost of the item.
Quantity of items and embroidery decoration
Erik Mickelson ,the Operations Manager since 1996 is a 2nd generation embroider. Erik started fulltime in his family's company after is graduation from Washington State University in 1996.