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Embroidery Pricing

3 years 3 weeks ago #17785 by scoobylyn66
Embroidery Pricing was created by scoobylyn66
I am on round 3 of trying DN.

Would anyone be kind enough to show me their pricing tables for embroidery. I generally price by placement area ie left chest, simple back, complex back etc but I can't do this in DN and I can't get my head around this new pricing structure in DN.

I would be everso grateful for any help, thank you.

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3 years 3 weeks ago #17788 by brenden
Replied by brenden on topic Embroidery Pricing
Hi,

In DecoNetwork you can create as many price tables as you want. i.e. Left Chest price table, Large Back price table. etc.

The price tables work by quantity of garment stitched and number of stitches.

Let's take your Left Chest first:

You can create a left chest price table that has sewing fees for a design on a left chest based on the quantity sewn and the number of stitches.



You can then assign that price table to a product.

Edit a product then select the 'Pricing Tab'.

You will see a row called 'Decoration Pricing' and a blue cog. Select the cog and change to 'Use custom decoration pricing (Advanced).



Then select 'Edit Price'.

A popup will appear with all your default decoration pricing methods listed for each process. In the bottom of the dialog check "Use Advanced Pricing":



You will see the dialog expands open to show each product view and area as a row, and each decoration process and it's default pricing method as a column:



Scroll over to 'Embroidery Pricing' and locate the row for 'Left Chest'. It will be using the default price table. You can uncheck 'Default Price' and select the 'Left Chest' price table you create:




I noticed you have a simple and complex pricing method for a back design. When pricing is automated and a customer is self serving you need to make your pricing flexible for this. Therefore I recommend you do it stitch count based. If a design has less stitches (simple) you charge less, and if more stitches (complex) you charge more. You can set those stitch count values in your simple and complex levels and set the pricing accordingly.

Today, in fact, we released an eBook for embroidery pricing which you may want to read over: www.deconetwork.com/understanding-embroidery-pricing-ebook

Cheers,

Senior Product Manager
Wilcom - Sydney, Australia

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3 years 3 weeks ago #17790 by 2LiveCards
Replied by 2LiveCards on topic Embroidery Pricing
Well that saved me a lot of typing :cheer:

The only point I would add to Brendens excellent sit-rep is that the issue with having separate tables for each area is making sure you go in to each & every product & set the correct table for each area.......... That's a lot of work, is it going to be cost effective for how much effort is involved versus the speed of simplicity on one standard price table?

We've gone the other way, ditched all the fancy, complicated in house pricing rules & simplified to a single price up to x stitches then price / 1000 if there's more stitches.
It means we look expensive on line if you want a couple of initials opposite your logo but overall it makes using the designer simpler for joe soap who hasn't a clue what we were thinking when we tried to cobble together a system that suited us, but not the man sitting on his sofa pricing up a polo shirt on line
The following user(s) said Thank You: brenden

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3 years 3 weeks ago #17791 by scoobylyn
Replied by scoobylyn on topic Re:Embroidery Pricing
Thanks Brendan I will look at that.

But again I'm so frustrated that in order to achieve this I need to go into every product. But the plus is it will encourage me to only add items I've selected not all the ralawise catalogue!

I really am struggling with the pricing strategy. And with the complex and non complex I am leaning towards the pricing table to calculate it for me. I just can't seem to price it correctly for the table.

I really want this to work. I've invested so much time and money and got nothing to show for it.

Brendan, I really do appreciate your time and efforts I really do. Thank you.

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3 years 3 weeks ago #17792 by scoobylyn
Replied by scoobylyn on topic Re:RE: Embroidery Pricing

2LiveCards wrote: Well that saved me a lot of typing :cheer:

The only point I would add to Brendens excellent sit-rep is that the issue with having separate tables for each area is making sure you go in to each & every product & set the correct table for each area.......... That's a lot of work, is it going to be cost effective for how much effort is involved versus the speed of simplicity on one standard price table?

We've gone the other way, ditched all the fancy, complicated in house pricing rules & simplified to a single price up to x stitches then price / 1000 if there's more stitches.
It means we look expensive on line if you want a couple of initials opposite your logo but overall it makes using the designer simpler for joe soap who hasn't a clue what we were thinking when we tried to cobble together a system that suited us, but not the man sitting on his sofa pricing up a polo shirt on line

That's the problem. I'm struggling to price it up. Is it better to go on a stitch count or area measurements?

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3 years 3 weeks ago #17793 by 2LiveCards
Replied by 2LiveCards on topic Re:RE: Embroidery Pricing

scoobylyn wrote: That's the problem. I'm struggling to price it up. Is it better to go on a stitch count or area measurements?


Well my first question would be "what use is area measurement?" - it takes no account of stitch density / count etc. and as the cost to yourself is entirely a function of time you have to price to that to be effective in making a profit.
For me it's a no brainer - you price on stitch count!

So to "make it work" ask yourself:
1/ how much do I charge for a breast embroidered logo?
2/ how many stitches (how long) am I willing to work for to get that price?
3/ How much do I need to charge to make a living????
4/ Do 1,2 & 3 make sense to each other :/

Then set your price table up for embroidery. For ease I'm going to say £4.17 + VAT is my charge out price for a logo, up to 15K stitches for #4 above...........

So what price is a single polo shirt with an embroidered logo? For ease I'm going to say £13.33 + VAT (£16) as a trawl around UK webstes that's a fairly reasonable & realistic market price

So product price on single top = £9.16 + £4.17 = £13.33 + VAT
Cost = £5 so £8.33 margin on a single top

So if someone wants 2 tops............? Market price looks like £13 per top (£10.83)
So product £6.66 + £4.17 decoration = £10.83 + VAT = £13
So you've £11.66 margin in there .......
etc etc etc for where you have your volume price breaks for your business

So what happens if there's more than the number of stitches you want to include? In your price table put a maximum stitch count in the fixed price then the level above that is a £/1000
So how much per hour do you need to pay the bills? (lets say £40 per hour)
How many stitches do your machines do on average per minute (real not theoretical) & per hour, Lets use 500 so 30,000 per hour
£40 / 30,000 = £1.33 per thousand stitches (the example above is 28p at 15K stitches or 42p at 10k stitches based on a single head)
But this is all variable based on machines used, stitch speed / number of heads etc etc etc - the key is making it work for your business model

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3 years 3 weeks ago #17794 by 2LiveCards
Replied by 2LiveCards on topic Re:Embroidery Pricing

scoobylyn wrote: I've invested so much time and money and got nothing to show for it.


What did you set out to get from it?
What did you realistically expect to get from it?

I had the same conversations for about the first 5 years.......... Eventually I asked myself the questions I should have right at the start........ Do my customers want it? Do I have a customer base that will use it? How do I make it work for my business? (the important part was third one & how do I make myself stand out from the crowd by using it)

There's a couple thousand UK competitors out there all looking for the same customers, the ones who want to shop online - they're all fighting like crazy for anything that's going and with prices as low as 17p / 1000 stitches you've got to ask who's making a living out of it? Personally I wouldn't bother getting out of bed for 17p / 1000 stitches!

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