December '20

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A P P A R E L D E C O R A T I N G S T I T C H S O L U T I O N S | J E N N I F E R C O X 8 2 G R A P H I C S P R O D E C E M B E R 2 0 2 0 G R A P H I C S - P R O. C O M TIME TO RETHINK YOUR EMBROIDERY PRICING MODEL O ne of the most frequent themes in my conversations with apparel decoration professionals is pricing. One of the questions that I hear almost every day is, "How do I respond when a customer tells me they can get it for less from someone else?" Why do our customers feel that their question about why our price is higher is even relevant in the first place? Do they go into a gas station and tell the cashier that they can get gas for several cents cheaper from the gas station up the road? I am cer- tain that they do not. There is a significant difference between the prices in our busi- nesses and the gas stations' prices, and that is this: gas station prices are highly visible, even when they change on a daily or even hourly basis. It appears that there is a unique percep- tion about pricing in our industry. Our customers make assumptions based on this perception, and even worse, we our- selves seem to maintain this perception. This self-defeating perception is that our pricing is random. That we just make it up, pull it out of thin air. I think it is about time we do something to change and correct this perception. It is high time to set the record straight about what our time, expertise, equipment, skills, and services are worth as apparel decoration professionals. THE NUMBERS We can apply the gas stations' displayed pricing strategy to our products, even though our pricing is equally as fluid as gas prices. Our prices are usually based on the particulars of any specific order. It is likely that you often sell a certain brand and style of golf shirt, T-shirt, and sweatshirt throughout the year. After the holidays, review your orders over the past two or three months and see where you priced similar orders. Then dig deeper to determine if those orders were profit- able at those prices. Beginning the first of next year, establish set prices for your core products. Set pricing for those core products to in- clude a slightly oversized left chest design, because this allows for higher pricing for larger stitch count designs. In addition, create an add-on price for oversized de- signs, additional logo placements, and for names. Track key information, such as the average stitch counts for your most common placements like a left chest logo, to establish pric- ing that enables you to earn the profits you need. (Image courtesy Tamara Boyer, Threadart & Everything Promotional)

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