How to Price Embroidery Services: Complete Commercial Pricing Guide
Pricing embroidery services correctly is one of the most important business decisions you will make. Price too low and you work hard for little profit. Price too high and you lose jobs to competitors. This guide covers the most common commercial embroidery pricing models and how to establish a rate structure that generates sustainable profit.
The Stitch Count Pricing Model
The most common commercial embroidery pricing model charges by stitch count, the number of stitches required to produce the design. Industry pricing typically ranges from $0.01 to $0.02 per thousand stitches, often written as $10-$20 per 1,000 stitches or 1-2 cents per thousand stitches.
Common design stitch counts:
- Small left chest logo: 3,000-5,000 stitches — $3-$10 in embroidery fees at standard rates
- Standard left chest logo: 5,000-8,000 stitches — $5-$16
- Cap front embroidery: 5,000-10,000 stitches — $5-$20
- Large jacket back: 15,000-30,000 stitches — $15-$60
Setup and Digitizing Fees
Most embroidery businesses charge a one-time setup fee for digitizing new designs. This fee covers the cost of converting a customer's artwork into an embroidery file. Common setup fees range from $25-$75 per design for standard logos, with higher fees for complex artwork.
Setup fees are typically charged once per design. Repeat orders using the same design do not incur a new setup fee, which encourages repeat business.
Minimum Order Considerations
Many embroidery businesses set minimum order quantities (MOQs) to ensure orders are profitable relative to setup time. Common minimums range from 6-24 pieces for standard garment embroidery. Smaller quantities can be accommodated at higher per-piece rates.
Garment Markup
When providing blank garments as part of your service, mark up wholesale cost by 40-60% at minimum. Most embroidery businesses purchase blanks at $8-$15 wholesale and sell them at $18-$35 retail, depending on quality and market.
Sample Pricing: Standard Corporate Polo Order
- Quantity: 24 polo shirts
- Blank polo wholesale cost: $9.00 each
- Blank polo retail price: $20.00 each
- Embroidery fee (6,500 stitches at $0.015/1,000): $9.75 per shirt
- Total price per shirt: $29.75
- Total order revenue: $714
- Total cost: $216 (blanks only)
- Gross profit: $498 (70% gross margin)
What Affects Your Pricing
- Local market rates in your area
- Your machine and overhead costs
- Order volume and customer relationship value
- Design complexity and stitch density
- Garment type and difficulty of hooping
Starting Your Business with the Right Equipment
Accurate pricing starts with understanding your equipment cost. View our commercial embroidery machines with pricing, and factor your equipment payments into your pricing model.
FAQ
How do I know how many stitches a design has?
Your embroidery digitizing software will show the stitch count for each design. If outsourcing digitizing, request the stitch count with your file delivery.
Should I charge more for cap embroidery than flat garment embroidery?
Many embroidery businesses charge a slight premium for cap embroidery due to the additional setup time and skill required. A $2-$5 per piece surcharge on caps is common.
How do I compete with online embroidery services on price?
Local embroidery businesses compete on speed, personalized service, and no minimum order restrictions, not just price. Many customers prefer local suppliers for corporate uniform programs and team apparel.