Retail / Home Production Cost Analysis
How Much Money Can You Earn With a Ricoma?
While there are other factors which may come into play when you start your business and pick the market niche you wish to serve, below we have outlined the basic formula for calculating you daily embroidery profit.
Number of Heads
Cost
1 2 4 6
1 Day Labor ($9.00/hr. x 8 hours)
$72.00 $72.00 $72.00 $72.00
Average machine cost with software
$12,500 $18,500 $26,500 $35,500
Monthly Payment (60 months @ 10%)
$266 $393 $563 $755
Daily Payment (Monthly payment / 30 Days)
$12.09 $17.86 $25.59 $34.31
Daily Labor + Machine Payment
$84.09 $89.86 $97.59 $106.31
Production
1 2 4 6
Time it takes to sew an average design. (6,000 stitch pattern 3-colors @ 700 stitches per minute) The average corporate logo will be about 3000-5000 stitches. Top machine speed is usually 1200 stitches per minute. Time is allotted for re-loading the garment onto the machine and the extra time it takes for the machine to trim the thread and change colors.
9.6 min 10.1 min 10.6 min 11.1 min
Results
1 2 4 6
Total items produced in one day. (420 minutes (7 hours) divided by time for 1 item)
43.75 83.16 158.48 227.00
Production Cost/Item (One days operation cost divided by items produced, including .04 per item for thread & backing)
$1.96 $1.12 $0.65 $0.50
Retail Pricing
1 2 4 6
Total items produced in one day. (420 minutes (7 hours) divided by time for 1 item)
43.75 83.16 158.48 227.00
Production Cost/Item (One days operation cost divided by items produced, including .04 per item for thread & backing)
$1.96 $1.12 $0.65 $0.50
Retail Pricing
1 2 4 6
Embroidery Profit (6000 stitches x .80 per 1000 x daily production less production cost) Retail pricing will vary depending on location and customer. We took a good average of this criteria and came up with .80 per 1000 stitches.
$124.25 $306.02 $657.69 $976.10
Total Daily Profit
1 2 4 6
Cost
1 2 4 6
1 Day Labor ($9.00/hr. x 8 hours)
$72.00 $72.00 $72.00 $72.00
Average machine cost with software
$12,500 $18,500 $26,500 $35,500
Monthly Payment (60 months @ 10%)
$266 $393 $563 $755
Daily Payment (Monthly payment / 30 Days)
$12.09 $17.86 $25.59 $34.31
Daily Labor + Machine Payment
$84.09 $89.86 $97.59 $106.31
Production
1 2 4 6
Time it takes to sew an average design. (6,000 stitch pattern 3-colors @ 700 stitches per minute) The average corporate logo will be about 3000-5000 stitches. Top machine speed is usually 1200 stitches per minute. Time is allotted for re-loading the garment onto the machine and the extra time it takes for the machine to trim the thread and change colors.
9.6 min 10.1 min 10.6 min 11.1 min
Results
1 2 4 6
Total items produced in one day. (420 minutes (7 hours) divided by time for 1 item)
43.75 83.16 158.48 227.00
Production Cost/Item (One days operation cost divided by items produced, including .04 per item for thread & backing)
$1.96 $1.12 $0.65 $0.50
Retail Pricing
1 2 4 6
Total items produced in one day. (420 minutes (7 hours) divided by time for 1 item)
43.75 83.16 158.48 227.00
Production Cost/Item (One days operation cost divided by items produced, including .04 per item for thread & backing)
$1.96 $1.12 $0.65 $0.50
Retail Pricing
1 2 4 6
Embroidery Profit (6000 stitches x .80 per 1000 x daily production less production cost) Retail pricing will vary depending on location and customer. We took a good average of this criteria and came up with .80 per 1000 stitches.
$124.25 $306.02 $657.69 $976.10
Total Daily Profit
1 2 4 6
HatsCost = $3Retail = $13Profit = $10 + Embroidery.
$554 $1,136 $2,237 $3,246
$554 $1,136 $2,237 $3,246
Polo ShirtsCost = $8Retail = $24Profit = $16 + Embroidery.
$812 $1,634 $3,185 $4,608
$812 $1,634 $3,185 $4,608
JacketsCost = $28Retail = $55Profit = $27 + Embroidery.
$1,285 $2,547 $4,923 $7,105
Note: Above garment profits will be reduced for large orders and/or to compete with other embroiderers.
No comments:
Post a Comment