The Cost of Equipping an Embroidery Business

Before jumping in, you need to know the equipment and training costs and be sure you have the financial wherewithal to swim.
Nov 5, 2007

By Steven Batts

Now that you have decided to plunge into the embroidery business, it's time to ask some important questions, such as the following: What is your target market? Do you have a niche that you can sell to? And most importantly, what are the costs?

Knowing your startup and operating costs is crucial because it affects all the other categories. It impacts your market strategy by indicating what to charge. It will determine how you will finance your business and whether you will have the capital to keep it going once you get started.

In the Bible, Jesus said, "For which of you, intending to build a tower, does not sit down first and count the cost, whether he has enough to finish it." While this analogy has spiritual implications, it's common sense. Are you in the financial position to start this business? Do you know how much capital will be necessary to get it up and going?

Equipment Costs
When you think of the costs associated with an embroidery business, the first thing that comes to mind is the machine. This cost is simple to find. It's what you will pay for your machine if you buy it outright or your lease payment if you plan to pay for the equipment over time. But there is more to equipment costs than just the machine. There are accessories and supplies that must be purchased before you sew the first piece.

Some accessories are included in the price of the machine, or their purchase can be negotiated with the machine. Typically, a machine comes with a basic set of hoops to handle average jobs. A cap frame attachment is often packaged with the machine. It's important to find out if it is or not when comparing machine costs. One machine may look a lot cheaper compared to one that includes the cap frame and other accessories, especially considering that a cap attachment can cost $1,000 per head.

Supplies for the machine can surprise you, too. It will cost at least $100 per head to outfit the typical machine with thread. Other needed supplies include various backings (stabilizers), needles, scissors and bobbins. The cost of these supplies can easily run $200-$300 for a small machine.

In addition to the machine, you will need some type of software program to view and edit designs, add lettering and possibly digitize your own designs. Depending on what type of program you are looking for, this can cost anywhere from $1,000 to $10,000. Most people don't start out with professional level digitizing programs, but the average program is about $3,500.

Training Costs
The next thing to consider is training. Most of the machine distributors offer free installation and training for larger machines (four heads and up). For smaller machines, you may have to pay for onsite training or for travel expenses to go to a regional training facility to learn how to operate the machine.

Operating a machine and being able to embroider are two different things. There is a lot to learn when starting out — machine operation and maintenance; software usage, including at least lettering and editing knowledge at first, and later digitizing; and a variety of related techniques and applications knowledge, such as needle, backing and thread selection; framing and finishing; and so forth. Because of this, if I were starting from scratch, I would purchase additional training with the machine.

Many distributors recognize the challenges of starting out and offer special startup packages that include all the necessary frames and supplies as well as specialized training to make sure you have the skills you need to get going. These packages are well worth the money when starting out with no experience.

This should give you an idea of what the startup costs are for equipment, software, accessories and training. In a future column, we'll explore the overhead costs associated with launching a new embroidery business.



Steven Batts, a 14-year veteran of the embroidery industry, is a regular speaker at the Imprinted Sportswear Shows. He owns Righteous Threads Embroidery, Greensboro, N.C., which offers digitizing, embroidery, machine maintenance and repair, and consulting. Call him at (336) 379-9380 or e-mail rthreads@bellsouth.net.

This is one of a series of original online articles designed to help prospective decorated apparel business owners get off on the right foot. For classroom instruction, visit ISSshows.com for a complete schedule of courses on how to start and grow an embroidery, screen printing, heat printing or inkjet-to-garment printing business.

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