# Should I outsource embroidery for monogramming or buy equipment?



## katkl (Aug 10, 2012)

A local gift shop in town is closing due to out of state relocation of owner. I plan to start offering parts of their product line that were successful for them, mainly monogrammed items either sublimated, vinyl or embroidery. I am already set up and doing sublimation and vinyl. But not embroidery. 

The past owner outsourced the embroidery (monogram only). The person who did this for her charged her $8 for up to 4" high letters. For 5" high letters they charged her $12. Is this high? (I am in southern Virginia)

I am just wondering if I should consider buying equipment (I have access to two used pieces of equipment both recently serviced (a Brother BAS-410 single head 9 needle or a SWF/E-T1501C singled head 15 needle(the more expensive one)

If I outsource it is hard to make much profit on the monogramming at the $8 I would have to pay. If I had my own machine I could also offer a faster turn around.

But with the machine comes maintenance, a learning curve and expense of thread, hoops etc. and someone to run it.

Any advice would be appreciated.


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## tfalk (Apr 3, 2008)

Not sure, do they still make parts for the BAS machine? That would be my first question before buying it. The SWF is made by Sunstar and parts are still available for them.

The bigger question/issue - you will need software to create monogram stitch files. That can run anywhere from a few hundred to several thousand dollars. There is also a pretty steep learning curve for creating stitch files, commonly called digitizing. You could outsource the digitizing, there are companies out there that do it pretty cheaply. At the same time, if it costs you $5 to have a stitch file created and you are selling the service for $8, is it really worth $3 for all that?

Another thing to consider is buying the machine could open up other areas for lettering and logos on shirts instead of just monogramming...


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## rhilferding (Jun 18, 2010)

How much business are you planning to add? There is more to embroidery than a machine. Consider inventory 9 thread, bobbins, etc) labor, training, maintenance - especially with a SWF, and then see if you can make any money. If you can have enough business to justify the purchase - sure. If you're not sure - outsource it at first and see how it goes.


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## SunEmbroidery (Oct 18, 2007)

Those prices sound high. Have you tried locating a cheaper embroiderer? How much monograming is requested on a weekly basis? Monograming isn't nearly as popular as it was around here. If you do decide to purchase a machine six needles should be fine unless you expand into other types of embroidery. Would you locate the machine in the shop? That might generate business but it would have to be away from the general flow of customers for safety reasons.


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## katkl (Aug 10, 2012)

I would be picking up an exclusive product line that was sold by the store that went out of business to move out of state. They would outsource their monogramming at about 30 items a week on average, and more during the holidays and less in the months of January, February, July and October. She paid $8 to have the monogramming done and charged her customers $10. 

Maybe I should start out outsourcing it even though I would not make much profit and see how it goes. I have just been told that what she was paying seems a little high for a 4" monogram.


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## SunEmbroidery (Oct 18, 2007)

It seems high for a quantity rate but it also depends on the item.


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## katkl (Aug 10, 2012)

The embroidery would be on tote bags, baseball caps, etc. Mainly 3 letter monogram 4" high. The person doing the work for the store would come by twice a week and pick up the items and bring them back for a fee of $8 each item. The past store owner in turned charged $10 to her customers. Just seems high to me and this is why I am contemplating buying a machine. Currently now looking at buying new Brother PR655 single head 6 needle as a place to start.


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## tfalk (Apr 3, 2008)

If you are going down this street, you might want to consider going for the PR1000. The additional cost will give you PE-Design software which can create lettering and monogram files. The built in camera on the 10 needle is also helpful for exact placement on difficult items. Just a thought... (I have the Babylock equivalent machine...)


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## SunEmbroidery (Oct 18, 2007)

Your profit is in the items you are selling not the embroidery. As long as you aren't loosing on the embroidery it sounds like it works for you because it probably increases sales of the item. Your cost sounds high but if everything works smoothly (no ruined product, items completed in a timely manner and you can work with the person) then that cost may be worth it. You could get a cheaper person but they might have a learning curve, ruined product and not pickup or deliver. If you can greatly increase the sales of item to be monogrammed then purchasing a machine might be worth it but there is a definite learning curve for learning to use the software and run the machine and you may need to purchase additional clamps for the bags.


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## shreddedwheat (Jun 19, 2014)

I don't think that rate is high for the south - where monograms still are a huge thing. I charge $12 flat rate for one letter, or a full name, and can keep my machines running. You also have to consider that you're paying for pick up and drop off - which is a really nice convenience - and twice a week at that. $2 profit isn't that great for you - but it's still profit - and you aren't having to worry about ruins, or the time involved in learning and running the machine - which can free you up to do other things with your business.


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## katkl (Aug 10, 2012)

Thank you so much for your reply. I have decided to wait on a machine and outsource the embroidery. Although I am hoping I can work out something to get the prices down. Currently they will charge me $8 for up to 4" tallest letter, $14 for 4"-6" tallest letter and $20 for 6"-10" tallest letter. Still seems a little high and hard for me to mark up and make much profit. But yes, their is convenience in having it picked up and dropped back off.


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