How to Handle Customer-Supplied Goods

November 09, 2009
By Steven Batts, Contributing Writer

There has long been a debate among individual custom embroiderers as to how to handle customer-supplied goods. Some embroiderers don’t allow customers to do this at all. Others allow it, but they structure their pricing to discourage it. Still, others treat customer-supplied goods the same as the ones they provide themselves. Contract embroiderers, on the other hand, aren't affected in this scenario because their customers always supply the goods that are embroidered.

No matter where your business falls in these scenarios, it is important to have a policy regarding customer-supplied goods. First of all, there is the risk issue. This includes the embroidery machine fouling up a garment, and it's applicable regardless of whether you bought it or the customer bought it. The main question is: Who's responsible for replacing it? For my business, if I supplied the garment, I eat the cost of getting another one. If it is something the customer brought in, the solution is a little more vague.

Some embroiderers have a policy that when they accept a customer’s goods, he has to sign an agreement protecting the embroiderer against liability for any damage to those goods. While this may sound extreme, it lets the customer know there is some risk involved in you, the embroiderer, handling their goods.

Personally, I try to replace anything I screw up. The key word is “try.” The challenge comes in trying to find a replacement. Where did they get it? Do they have another one in the size and color I need? What if I can’t find one? What if it is really expensive?

In lieu of getting a replacement, sometimes I provide the embroidery free of charge. Then, I offer to embroider the replacement for free as well. This works in certain situations, such as when the wrong color is embroidered in the wrong place. The garment isn't defective; it just isn’t embroidered as requested. In this case, not charging for the embroidery and offering to embroider the replacement is a bonus for the customer. Customers may decide they don't mind the way it looks, and they don't mind getting an extra piece embroidered free. Many times, the cost of the embroidery is equal to the cost of the garment, so the tradeoff is a wash in terms of dollars.

Of course, finding a solution that doesn't take money out of your pocket is ideal, even if it means discounting the entire order to compensate for the piece that was messed up. I would rather give away money that I never received than shell out money to buy a new piece.

Either way, it is important to have your policy clearly stated to the customer. It may be in the form of a disclaimer, or you could simply post a sign — in plain view — in your shop. I have found that the best way to avoid confrontation with a customer about a damaged garment is to provide information ahead of time. If a customer knows your policy regarding customer-supplied goods ahead of time, there should be minimal confrontation if a piece gets damaged.

Of course, this still leaves the whole issue of pricing customer-supplied goods vs. the embroiderer supplying the goods. This has more to do with your particular business model. Are you mainly looking to make profit off of the embroidery and think of supplying goods as a means to satisfy the customer and make an occasional profit? Do you want to make your profit off the garment and just add the embroidery on a cost basis? Maybe you are a little bit of both.

We will address this issue, and the challenge that customer-supplied goods present to those particular models, next time. Meanwhile, I would like to hear from you on this particular topic. How do you feel about customers supplying their own garments? How do you handle customer-supplied goods? What are your pricing challenges?

Steven Batts, a consultant with 17 years experience in the embroidery industry, owns Righteous Threads, Greensboro, N.C., which offers digitizing, embroidery and machine maintenance services. Steven regularly leads seminars at ISS shows and is an industry speaker and consultant. For more information or to comment on this article, e-mail Steven at righteousthreads@gmail.com.



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