How to Price Machine Embroidery

Dec 14, 2023

Welcome to The Embroidery Coach, your go-to resource for all things embroidery and crafting. In this comprehensive guide, we will provide you with valuable insights, tips, and strategies to help you determine the appropriate pricing for your machine embroidery services. Whether you are just starting your embroidery business or looking to refine your pricing strategy, we've got you covered.

Understanding the Factors that Influence Pricing

Pricing machine embroidery services requires careful consideration of various factors to ensure fairness, profitability, and market competitiveness. Let's explore some key elements to help you determine the right price for your embroidery projects:

1. Materials

The cost of materials plays a significant role in pricing your machine embroidery services. Consider the type and quality of fabric, threads, stabilizers, and any additional embellishments like beads or sequins. Calculate the cost of these materials per unit or per project and include them in your pricing calculation.

2. Time and Complexity

The time and complexity of the embroidery design directly impact the price. Intricate designs with a high stitch count require more time and effort, and therefore, should be priced higher. Consider the intricacy of the design, the number of color changes, and any special effects required when evaluating the time and complexity of the project.

3. Market Value

Understanding the market value of machine embroidery is crucial in determining competitive pricing. Research local competitors, online marketplaces, and industry standards to gain insights into the average prices for similar embroidery services in your area. This information will help you position your pricing appropriately and remain competitive.

4. Desired Profit Margin

Defining your desired profit margin is an essential step in pricing your machine embroidery services. Determine the percentage of profit you aim to earn and incorporate it into your pricing structure. Keep in mind that your profit margin should cover not only your direct costs but also indirect expenses like overhead, marketing, and other operational costs associated with running your embroidery business.

Tips and Strategies for Calculating Pricing

When calculating the price for your machine embroidery services, consider employing the following tips and strategies for a more accurate and profitable pricing structure:

1. Breakdown Expenses

To ensure you cover all costs and achieve your desired profit margin, break down your expenses into direct and indirect costs. Direct costs include materials, while indirect costs encompass overhead, wages, utilities, and other operational expenses. Analyze these expenses and factor them into your pricing strategy.

2. Calculate Hourly Rates

Estimate the time required to complete a project and calculate your hourly rate accordingly. Consider the complexity of the design, the skill level required, and the necessary equipment. Set a fair hourly rate that reflects your expertise, experience, and the value of your embroidery services.

3. Consider Bulk Orders

Providing discounts for bulk orders can attract larger clients and incentivize them to choose your embroidery services. Determine the minimum quantity threshold for offering bulk discounts and calculate the discounted price accordingly. This strategy can help you maximize your profits while building long-term customer relationships.

4. Factor in Machine Maintenance and Depreciation

Regular maintenance and eventual depreciation of your embroidery machines are unavoidable costs that should be accounted for in your pricing strategy. Estimate the annual maintenance and depreciation expense based on your machine's lifespan and usage, and distribute this cost across your projects.

5. Stay Up to Date with Industry Trends

Keep a close eye on ever-evolving embroidery industry trends. Stay informed about new techniques, materials, and technology that may impact your pricing structure. Embracing innovation can help you differentiate your services and justify premium pricing for unique offerings.


Pricing machine embroidery services is a critical aspect of running a successful embroidery business. By considering the factors discussed in this guide and implementing the tips and strategies provided, you can ensure competitive pricing while maintaining profitability. Remember to regularly review and adjust your pricing as necessary to accommodate changing market dynamics and to optimize your business's growth and success.

For more valuable embroidery and crafting resources, visit The Embroidery Coach, where we provide expert guidance, tutorials, and inspiration to help you excel in your creative journey.

how to price machine embroidery