If you’re running a commercial embroidery business, one of the most important questions is: How should I charge for embroidery?

Pricing incorrectly can either scare customers away — or leave serious money on the table.

At TheEmbroideryWarehouse, we work with embroidery shops of all sizes and consistently see one major issue: underpricing. Below is a practical, professional framework to structure embroidery pricing the right way.

Charge by Stitch Count (Industry Standard)

Most commercial shops charge based on stitch count because it directly reflects machine time and production cost.

  • Base price up to a set stitch count (example: up to 8,000 stitches)
  • Additional charge per 1,000 stitches beyond that

Why this works:

  • More stitches = more machine time
  • More stitches = more thread usage
  • More stitches = longer production cycles
  • More stitches = increased wear on equipment

Your embroidery machine is your revenue engine — price it accordingly.

Add a Setup or Digitizing Fee

Unless the customer provides a production-ready file, digitizing is a separate professional service.

  • One-time digitizing fee per logo
  • File stored for future reorders

Do not bury digitizing into stitch pricing. It requires skill, software, and experience — and it should be billed properly.

Set a Minimum Order or Minimum Charge

Small orders consume nearly the same setup time as large ones.

Many commercial shops establish:

  • A minimum quantity (example: 6–12 pieces)
    or
  • A minimum dollar amount per order

This protects your schedule from being filled with low-margin single-piece jobs.

Upcharges Professional Shops Should Apply

If a job adds complexity or slows production, it should increase price.

  • 3D puff embroidery
  • Metallic thread
  • Specialty garments
  • Difficult placement areas
  • Rush orders

Premium service should carry premium pricing.

Don’t Compete on Price Alone

Competing solely on low pricing leads to burnout and unsustainable operations.

Commercial embroidery machines from brands such as:

are production tools. They require investment, maintenance, and operating costs. Your pricing model must reflect that.

Professional equipment deserves professional pricing.

Know Your Real Costs

Before setting your embroidery pricing, calculate:

  • Machine payments (if financed)
  • Labor cost per hour
  • Thread and backing cost per job
  • Rent and utilities
  • Maintenance and service expenses

Once you determine your true cost per production hour, pricing becomes much clearer — and more profitable.

Final Advice: Charge for Value

Embroidery adds branding, professionalism, and perceived value to garments.

Don’t price like a hobbyist.
Price like a business.

If you’re investing in commercial embroidery equipment and building a real production operation, your pricing structure should support growth — not just survival.

If you need guidance on scaling your embroidery business with the right commercial equipment, contact TheEmbroideryWarehouse.

Strong equipment. Smart pricing. Profitable production.