Special-Occasion Embroidery Gifts Can Be Profitable — and Fun! Part 1

Embroiderers find offering special-occasion gift items is fun, profitable and builds repeat business. Here's how to get started.
March 31, 2008

By Deborah Sexton

When people achieve professional milestones or celebrate anniversaries, a personalized gift can mean more than just a token present. Weddings, graduations, back to school, births, Mother's Day, Father's Day and birthdays are all special occasions that embroiderers can turn into profitable celebrations of their own.

Customers are looking for high-quality gifts that are unusual but practical, and resourceful embroiderers have the opportunity to earn a reputation for specializing in creative alternatives. "What's nice about the gift market is people can get an item personalized so it looks like they didn't just buy it that day," says Ashley Edmunds, owner, Alphabet Soup, Columbia, S.C. "And personalized gifts have a higher perceived value."

The special occasion sector of the embroidery market is one that Ginny Fineberg says is a simple addition for any embroiderer looking to diversify and increase profits. The owner of Sandpiper Embroidery, Wildwood Crest, N.J., has a retail storefront and a full-service custom embroidery operation. "The markup on gift items is higher, and because they're personalized, you get very few returns as long as you spell the name right," she says.

Custom/contract embroiderer Lisa Calder spends time coming up with creative gift ideas that add variety to a sometimes "mundane" job. "Most contract work requires the same thing every day," says the owner of Lisa Calder Embroidery/R&R Enterprises, Vidor, Texas. "With gifts, you can exercise your brain a little; plus, you get to make more money."

Location Considerations
While some custom embroiderers have a showroom or display area within their facilities, those with retail stores can best serve this market. Some shop owners focus solely on being a retail location, while others offer custom embroidery services to enjoy crossover sales from these two distinct markets. Home-based businesses also can successfully compete in this market, especially if they have a display area in their home or are willing to host parties.

"Having a retail location is terrific if you're in the gift market," says Fineberg. "But selling products through a Web site and home parties are also great ways to begin a business if you don't have money [to set up a storefront]. You simply find some unique items, provide embroidered samples and order them to personalize for your customers after they're sold."

Margaret Hamm, owner, Monograms Plus, Cullman, Ala., has combined the best of three worlds with her 5,000-square-foot gift shop/custom embroidery/Web site business. For her, the Web site has turned out to be a significant source of sales. "Our Web site is geared to our retail side, and it's not unusual to have 30 orders a day for more than one item. That number goes up during busier times of the year. At times, I'd estimate, [site sales] account for 25% of our overall sales," she says.

She credits her success in part to finding a good Webmaster who has focused on maximizing pay-per-click results. "Your Webmaster must understand what you're doing," she says. "Ours knows our target market and is local, so she's got her hands on our products."

Patience is essential, she adds. "Your Web site constantly evolves — it isn't something you do once and it works forever."

Voice of Experience
As you tackle the special occasion market, you'll find the mix of merchandise that works best for you. But heed these points from creative embroiderers who've been there:

•    Test your merchandise. "We always test anything we sell that's washable. We make sure it's not going to shrink or fade and that we're not buying inferior products," Fineberg says.
•    Suggest yours, not theirs. "We help people with their choices by encouraging them to buy our bath sheets vs. bringing in their own," Fineberg says. "We know our quality is really good. If they insist in bringing their own, and they're dark, we wash them before sewing. Otherwise, there's a risk the dye will ruin the embroidery on the first wash." Although this seems like a lot of extra work, Fineberg has found it to be a good policy for her shop. "Anyone I ever washed a towel for has become a lifelong customer," she says.
•    Avoid spelling goofs. To prevent personalization mistakes, Fineberg has a specially designed order form. Once it's filled out, she reads it back to the customer and gives her a signed copy. This has gone a long way in avoiding disputes with customers over incorrect merchandise.
•    Offer merchandise you don't monogram. Embroiderers say selling personalized products that you don't customize for clients is a great way to boost sales of special occasion gifts. Alphabet Soup's Edmunds says she orders personalized items from about five vendors, even though she doesn't monogram them. "One [vendor] will put one to three [molded] letters on a bar of soap," she explains. "It usually takes four to five days to have it delivered, which is about as fast as I can get something monogrammed that's purchased from my shop. We also offer leather products that are hot stamped and needlepoint monogrammed shoes." Edmunds marks up these products so she makes a profit without investing any labor.
•    Find friends. Search for a networking group. For instance, Monograms America accepts new members who are not within 50 miles of an existing member. Other associations, such as the National Network of Embroidery Professionals and the Embroidery Trade Association, also offer networking opportunities.
•    Seek vendors that respect sales territories. "The good sales reps will protect you [from market oversaturation]," notes Hamm. She recommends building a good relationship with a select group of suppliers who will not try to sell their product to every store in your immediate area.

"Special Occasion Embroidery Gifts Can Be Profitable — and Fun!, Part 2", which will appear in the April 15 issue of the Impressions Newsletter, will describe some of the most popular special occasion categories, suggested gifts to fit the occasion and where to source them.

Deborah Sexton, the former editor of Impressions, has been in the decorated apparel industry for more than 20 years. She currently does marketing and public relations for decorated apparel companies. To contact her, e-mail dsexton@sbcglobal.net.

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