How to Sell Embroidery

How Sell Embroidery for a Profit

Ok, it's signed and dated. Now are you ready to sell embroidery? Making a piece for profit is different from making gifts for family and friends.

Do not undersell your time! Giving gifts as a gesture of the heart is one thing, but selling embroidery too low undermines the respect for handmade work. If you are doing machine embroidery, you still need to consider your time and the cost of materials and equipment.

Here's a formula to help you calculate what the price should be:

Materials + Labor + Overhead + Profit = Price

Materials
Add up the total cost of materials: fabric, thread, beads, charms... everything in the finished embroidery. Will the piece be framed? Include the expense for the framing materials. This is where it pays to be registered as a legitimate business. A business ID number allows you to purchase materials at a wholesale price with no tax.

Labor
As I said, it's important to factor in your time. I hope you love to embroider, and it is time well spent, but don't you want to be paid at least minimum wage? To calculate the labor expense, multiply your hourly wage by how many hours the embroidery takes you. Include the finishing and framing time.

Overhead
This covers your operating expenses. In other words, it's the cost of equipment and running your business. As a legitimate business, you will have expenses besides the cost of materials. To calculate an overhead of 33.3%, take the greater of labor or materials and multiply it by .333 for your answer.

Profit
So far, we've only covered the actual manufacturing costs. Now it's time to make some money! Most manufacturers earn at least a 100% profit at this step. So multiply the total manufacturing cost (materials + labor + overhead) by 1. If you want a 125% profit, multiply by 1.25. Place that value into the above formula as profit.

Price
The manufacturing cost (materials + labor + overhead) plus profit gives you the wholesale price. Typical manufactures then sell to retailers at this wholesale price and retailers then add on their profit, which can range from 5% to 200%! As an individual crafter, you don't have to worry about that. I'm just telling you so you'll feel comfortable adding more of a profit to your price when you sell embroidery. You are worth it!

Are you ready to turn your hobby into a legitimate business and make it pay for itself? It's not a journey for the faint of heart!

When you're ready and legally registered, you can sell embroidery at local markets, online, or do both, as I do. Learn from my experiences:

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