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How to price embroidery

Embroidery prices depend on two things buyers can't see: how many stitches the design has and how long setup takes. A small logo on 50 hats and a one-off name on a single sweatshirt need very different prices.

1. Materials

Count the blank (shirt, hat, tote or hoop fabric), stabilizer, backing, thread (estimate the share of a cone or skein used), and for hoop art the hoop and backing felt. If the customer supplies the item, you may save on materials but take on the risk of ruining their item. Many embroiderers charge extra or ask the customer to sign off on that risk.

2. Labor

Machine: digitizing a new design is a one-time job. Charge it as a setup fee or spread it over the order. Then time hooping, stitching, trimming and finishing per piece. Machine time per piece goes up with stitch count. Hand: stitching is slow, so time a full piece honestly and use that number.

3. Overhead

Machine payments and servicing, needles, hoops, digitizing software, and thread you buy in colors you rarely use. Spread them across monthly output.

Platform and payment fees

Marketplaces usually take a percentage of each sale plus fixed per-order or per-listing charges, and payment processing is often separate. Fee schedules change, so read your platform's current fee page rather than trusting a number you saw once. Remember that fees are charged on the price the customer pays, so they grow as your price grows. Calculate them on your final price, not on your cost.

Choosing a markup

Once you know your true cost (materials + labor + overhead), multiply it to get a price. A common maker rule of thumb is wholesale at about 2× true cost and retail at about 2× wholesale, but that is a starting point, not a law. Check the result against what comparable products actually sell for, then decide whether your quality, story or speed justifies sitting above or below that range. If the price you need is far above what buyers pay, the fix is usually cost or time, not a smaller margin.

For custom orders, price setup and per-piece work separately. That way small orders pay for their setup, and larger orders get a fair per-piece price.

Worked example

Notice that the profit line comes after you've paid yourself for your time. That's the number that tells you whether this product is a business or a hobby.

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