Help with pricing!

[florida girl]

I've always done the sewing, not the pricing and I'm trying to start my own business in an area that would be specific to marine, and I don't know anyone else here doing it.  Do you charge by the inch, or foot, or by the piece?  Include vinyl costs and and shipping?

[bobbin]

Florida Girl,

There really isn't a one-shot, quickie solution to pricing.  It takes time and it takes attention to detail and some honest questions, too!  But it's "do-able".  There are a lot of things to consider before you hang out your shingle.  So be patient.  Read, ask, and "run the numbers".  I had a fabulous professor in college (Retail Mg't.) and he always said, "any fool can turn a profit, it takes a merchant to hold onto it.".

I assume you're presently working for someone.  You know how much you "take home". 
1.)  Is it enough to do all the things you need to get done (pay bills, SAVE for both future desires and RETIREMENT, and have some pocket money)?  If not, how much more do you need to "take home" to do those things?
2.)  You know how much you presently pay in taxes, it's on your pay stub.  Now you need to know how much your employer pays on what you earn! you have to know that so you will be able to match the "take home pay" you presently earn (if it's enough) when you're the on the stick to the state and the feds..  This is incredibly important and it's where so many new business get tripped up... they haven't "run the numbers" and they don't know, and they get whacked with a huge "bill".  You have to plan for this stuff, or you'll be totally porked!  You do not want the state or feds on your case, so plan for the payments and just make them!
3.)  How much will you have to pay for a work space?  what will your utiliities run(on average) per month? (estimate high!).  What will insurances cost? professional license fees? etc.?  In combination with your wages/taxes, this figure will be your "overhead" and this is the figure that will allow you to determine the hourly rate you must charge customers to "break even". 

Start crunching those numbers and when you've arrived at a numberthat reflects those "costs of doing business"  you'll be ready to move on to pricing materials.  But do the really basic stuff first.  How do you eat an elephant? one bite at a time!  There are so many very talented, experienced people on this board, but you have to really knuckle down and do the grunt work first.  Check out SCORE and any basic adult education courses focussed on business.  Read, read, and read more.   Baby steps, but master them! it will make your life a whole lot easier in the final analysis.

[florida girl]

Thanks for the reply, I've been self employed for over 20 years, and haven't drawn a paycheck as an employee for a long time.  I own a small mobile home park, and do whatever I can to make a living. 

[bobbin]

Then since you're already well versed in the necessary taxes to be compliant and a good citizen of the USA, figuring mark-up and the necessary taxes on the items you wish to resell will be a breeze for you!

Once you're a legitimate and verifiable "business entity" (with all necessary tax numbers and licenses) you'll be able to establish credit with wholesale suppliers.  After you've done that, you will know your materials cost and how much you will need/wish to mark it up before you bill your customer. 

SCORE.  Read, read, and read some more!

[florida girl]

Thanks again!  So do you charge by the square inch, or piece?

[bobbin]

You have all the information you need. 

Or, do a series of searches. 

[kodydog]

Fl G, sounds like you haven't stitched in quite a while. Might want to try getting a job working for a canvas shop and get your feet wet again.

I price by the piece, but I do furniture.

[florida girl]

I'm in the middle of reupholstering a local gym, but charged by the square inch.  There isn't a local canvas shop.  Up coming is a pontoon boat, already done a jetski, have been working with a local fabric shop sewing pillows, etc.  I like the marine stuff.  I've worked for several sewing factories, jeans, Vanity Fair, and one making boat seats, worked for a bridal shop doing alterations, a taylor, and even a college theater department making costumes.  Have done numerous Google searches, but not many, maybe one I've found that actually posts their prices. 

[MinUph]

florida girl,
  This a question asked many times over. And never the reply your looking for. No-one can set a price for you. Each shop sets prices based on many factors. Overhead, supplies, labor, employees, rent, vehicle cost, many many more. You need to figure out what it costs you do do something and then you can figure the price. After adding all expenses, divided by time and adding in profit for you, and your business. This is true for any business.

[Mike]

hi Florida girl   ditto what paul said, prices in my area arnt what one could charge in the palm beach area and i dont know about you neck of the woods. what i do is figure how much material i will need price wise and shipping,  and figure my time to do the job.  hours X  my shop rate +  material costs   =  job  cost. ive got way  to figure a job to make it easy figuring material at a specific price per yard to give a total ( this is easier with simple canvas covers) but not all jobs can be figured this way a simple snap on cover can take 8 yards and a harder console cover with a t top can take 8 yards but the 2 jobs may not be the same price nessarily

[florida girl]

Thanks!

[sofadoc]

I agree with Paul and Mike. There's no magic potion for pricing.
In previous discussions, we've learned that there are as many different pricing strategies as there are stitchers. Some just charge a "lump sum", while others give an itemized invoice.
I wouldn't worry so much about "per inch".  I would put more emphasis on charging adequately for time and materials.

[florida girl]

Thanks! 

[SHHR]

  The key I see with me is to be honest enough with yourself to know exactly how long each job will take, then charge by the hour or job. When I first got going I'd look at a simple seat and tell my self "that should only take 3 hours" then about 6 or 7 hours later when I'm wrapping up the project, I realize how much I actually gave away instead of earning.
  Big manufacturing companies (especially those who practice JIT or lean manufacturing) constantly do studies to know how each minute or in your case Inches or feet cost, but for the small guy who's running a small one or two man shop would do well to work on getting the correct hours for estimating.
  While I have many who want an upfront estimate many more just schedule a job and recieve the bill when finished. Those are the ones I enjoy because I can simply get the work done then add up my time and charge accordingly when finished. I always estimate on the high side anymore too, then if I come in under time I pass that on to the customers final bill and most always appreciate the savings.
   Kyle 

[florida girl]

Thanks!  I'm horrible at estimating time!