Impressions - Embroidery 2023 - 16

out how many hours you are spending running your business over that
same time period. Divide your total cost by the number of hours you
are running your business to determine your cost per hour for labor.
Do the same thing for minutes. Once you start thinking of your costs
in minutes and even seconds, you will start to see and think about your
business in a whole different light.
Step 3: What are all the steps and processes you perform in a typical
business each day? How much is each of the following tasks costing
you in terms of your time?
* Taking an order
* Planning out the order
* Ordering the garments for each job
* Checking to see if you have all the supplies you need, including
thread
* Making sure you have the right hoops
* Opening the box of goods once it arrives from the distributor
and checking its contents against the packing slip to make sure
the entire order is there
* Hooping the first two runs
* Running off a design and sending the sample to the customer
for approval
* Cleaning up the garment, removing backing, threads, steaming
it and packing it for pickup or shipping
* Creating the invoice
Each one of these tasks takes time, and you need to keep track of
how long each one takes so you can accurately assess what the costs are
for each of the tasks you perform along with each order.
Shown on the previous page are the production and artwork tracking
and timing forms I use to keep track of each order. The process starts
the exact moment an order is taken and continues through all the steps
of planning and manufacturing right up until it is billed. Each one of
these steps has a time and cost associated with it. The workflow should
be time studied at each stage of development to see if there is another
way or movement that can be changed or incorporated to help the
process be done faster and more efficiently.
As a side note: I have found that in most cases not enough thought
is put into the planning process before each step. This is especially important
as a small embroidery business is growing and expanding into
a larger organization.
It's vital you account for all the steps and
tasks constituting the production process for
your company's various products. Image by
PR Image Factory - stock.adobe.com
Once you have completed time studies of each process or task, you
can figure out what each process is costing you based on how many
minutes or seconds they take multiplied by the figures generated in
Step 2. Again, this is extremely important. Now you can see exactly
how much money the various production tasks you're involved in are
costing you. Add them up to create the Cost of Preparation Time for
each job, i.e., the first part of the equation above.
Step 4: Multiply your costs per minute by how many hours you run
your business per day to get your daily breakeven point. The goal here
is to determine the amount of money you need to bring in to cover your
daily operating costs. It is especially important to analyze your costs
this way if you are working part-time, or your hours tend to fluctuate,
day by day. You now know exactly what it costs you per month, hour,
minute and day to operate your business, thereby providing a rock-solid
base cost for all your pricing.
Step 5: Figure out how long you are running your embroidery machine
per hour. Now that you've calculated how much to charge for
each hour and minute of time spent working you need to do the same
thing for your embroidery machine run times. How many minutes of
each hour is your embroidery machine running? If you are only running
your embroidery machine 30 minutes per hour, your breakeven point,
or cost of machine time based on your overall cost of doing business
as calculated in steps 1 and 2, is going to double for that same hour. If
you are charging by the minute when the machine is running and not
for the time that it is sitting there doing nothing, you are losing money.
If you figure out that in an eight-hour day your machine is running
a total of four or six hours, you must divide your total daily breakeven
point (as derived in Step 4) by the four or six hours your machine is
actually running to arrive at your true breakeven cost per hour. Divide
that cost up into minutes. You now have a true cost per hour of machine
running time that you can base the second part of your pricing
equation on.
Step 6: Figure out how long it takes to run a design on your machine
by the stitch count. In the same way you determined how much
time it takes to performs the various tasks that go into completing each
order, you need to do the same thing for machine time. When you are
timing your designs, do not forget the color changes and trim times.
You are figuring the total time from start to finish, not just the stitch
count run time. Start timing as soon as you slide the hooped garment
16
http://stock.adobe.com

Impressions - Embroidery 2023

Table of Contents for the Digital Edition of Impressions - Embroidery 2023

Impressions - Embroidery 2023 - Cover1
Impressions - Embroidery 2023 - Cover2
Impressions - Embroidery 2023 - 1
Impressions - Embroidery 2023 - 2
Impressions - Embroidery 2023 - 3
Impressions - Embroidery 2023 - 4
Impressions - Embroidery 2023 - 5
Impressions - Embroidery 2023 - 6
Impressions - Embroidery 2023 - 7
Impressions - Embroidery 2023 - 8
Impressions - Embroidery 2023 - 9
Impressions - Embroidery 2023 - 10
Impressions - Embroidery 2023 - 11
Impressions - Embroidery 2023 - 12
Impressions - Embroidery 2023 - 13
Impressions - Embroidery 2023 - 14
Impressions - Embroidery 2023 - 15
Impressions - Embroidery 2023 - 16
Impressions - Embroidery 2023 - 17
Impressions - Embroidery 2023 - 18
Impressions - Embroidery 2023 - 19
Impressions - Embroidery 2023 - 20
Impressions - Embroidery 2023 - 21
Impressions - Embroidery 2023 - 22
Impressions - Embroidery 2023 - 23
Impressions - Embroidery 2023 - 24
Impressions - Embroidery 2023 - 25
Impressions - Embroidery 2023 - 26
Impressions - Embroidery 2023 - 27
Impressions - Embroidery 2023 - 28
Impressions - Embroidery 2023 - Cover3
Impressions - Embroidery 2023 - Cover4
https://www.nxtbook.com/emerald/impressions/20240809S
https://www.nxtbook.com/emerald/impressions/20240506
https://www.nxtbook.com/emerald/impressions/202404S
https://www.nxtbook.com/emerald/impressions/202404
https://www.nxtbook.com/emerald/impressions/202403
https://www.nxtbook.com/emerald/impressions/20240102
https://www.nxtbook.com/emerald/impressions/202312
https://www.nxtbook.com/emerald/impressions/20231011
https://www.nxtbook.com/emerald/impressions/20230809
https://www.nxtbook.com/emerald/impressions/2023
https://www.nxtbook.com/emerald/impressions/20230506
https://www.nxtbook.com/emerald/impressions/202304
https://www.nxtbook.com/emerald/impressions/202303
https://www.nxtbook.com/emerald/impressions/20230102
https://www.nxtbook.com/emerald/impressions/202212
https://www.nxtbook.com/emerald/impressions/20221011
https://www.nxtbook.com/emerald/impressions/20220809
https://www.nxtbook.com/emerald/impressions/20220506
https://www.nxtbook.com/emerald/impressions/202204
https://www.nxtbook.com/emerald/impressions/202203
https://www.nxtbook.com/emerald/impressions/20220102
https://www.nxtbook.com/emerald/impressions/202112
https://www.nxtbook.com/emerald/impressions/20211011
https://www.nxtbook.com/emerald/impressions/DigitalDecorator_2021
https://www.nxtbook.com/emerald/impressions/20210809
https://www.nxtbook.com/emerald/impressions/teamactivewear_2021
https://www.nxtbook.com/emerald/impressions/202106
https://www.nxtbook.com/emerald/impressions/202105
https://www.nxtbook.com/emerald/impressions/imp_0421_digital
https://www.nxtbook.com/nxtbooks/impressions/202103
https://www.nxtbook.com/nxtbooks/impressions/20210102
https://www.nxtbook.com/nxtbooks/impressions/202012
https://www.nxtbook.com/nxtbooks/impressions/dd_fall2020
https://www.nxtbook.com/nxtbooks/nxtbook_bhtest/impwessons
https://www.nxtbook.com/nxtbooks/impressions/20201011
https://www.nxtbook.com/nxtbooks/impressions/202009
https://www.nxtbook.com/nxtbooks/impressions/teamactive_2020fall
https://www.nxtbook.com/nxtbooks/impressions/202008
https://www.nxtbook.com/nxtbooks/impressions/20200607
https://www.nxtbook.com/nxtbooks/impressions/202005
https://www.nxtbook.com/nxtbooks/impressions/dd_2020
https://www.nxtbook.com/nxtbooks/impressions/202004
https://www.nxtbook.com/nxtbooks/impressions/202003
https://www.nxtbook.com/nxtbooks/impressions/202002
https://www.nxtbook.com/nxtbooks/impressions/202001
https://www.nxtbook.com/nxtbooks/impressions/201912
https://www.nxtbook.com/nxtbooks/impressions/dd_2019
https://www.nxtbook.com/nxtbooks/impressions/201910
https://www.nxtbook.com/nxtbooks/impressions/201909
https://www.nxtbook.com/nxtbooks/impressions/teamactive_2019fall
https://www.nxtbook.com/nxtbooks/impressions/201908
https://www.nxtbook.com/nxtbooks/impressions/20190607
https://www.nxtbook.com/nxtbooks/impressions/201905
https://www.nxtbook.com/nxtbooks/impressions/201904
https://www.nxtbook.com/nxtbooks/impressions/201903
https://www.nxtbook.com/nxtbooks/impressions/teamactive_2019spring
https://www.nxtbook.com/nxtbooks/impressions/201902
https://www.nxtbook.com/nxtbooks/impressions/201901
https://www.nxtbook.com/nxtbooks/impressions/201812
https://www.nxtbook.com/nxtbooks/impressions/dd_2018
https://www.nxtbook.com/nxtbooks/impressions/201810
https://www.nxtbook.com/nxtbooks/impressions/201809
https://www.nxtbook.com/nxtbooks/impressions/teamspirit_2018fall
https://www.nxtbook.com/nxtbooks/impressions/201808
https://www.nxtbook.com/nxtbooks/impressions/201806
https://www.nxtbook.com/nxtbooks/impressions/201805
https://www.nxtbook.com/nxtbooks/impressions/201804
https://www.nxtbook.com/nxtbooks/impressions/201803
https://www.nxtbook.com/nxtbooks/impressions/teamspirit_2018spring
https://www.nxtbook.com/nxtbooks/impressions/201802
https://www.nxtbook.com/nxtbooks/impressions/201801
https://www.nxtbook.com/nxtbooks/impressions/201712
https://www.nxtbook.com/nxtbooks/impressions/201710
https://www.nxtbook.com/nxtbooks/impressions/201709
https://www.nxtbook.com/nxtbooks/impressions/201708
https://www.nxtbook.com/nxtbooks/impressions/teamspirit_2017fall
https://www.nxtbook.com/nxtbooks/impressions/20170607
https://www.nxtbook.com/nxtbooks/impressions/201705
https://www.nxtbook.com/nxtbooks/impressions/201704
https://www.nxtbook.com/nxtbooks/impressions/201703
https://www.nxtbook.com/nxtbooks/impressions/teamspirit_2017spring
https://www.nxtbook.com/nxtbooks/impressions/201702
https://www.nxtbook.com/nxtbooks/impressions/201701
https://www.nxtbook.com/nxtbooks/impressions/sportsfanretailer
https://www.nxtbook.com/nxtbooks/impressions/201612
https://www.nxtbook.com/nxtbooks/impressions/201610
https://www.nxtbook.com/nxtbooks/impressions/201609
https://www.nxtbook.com/nxtbooks/impressions/201608
https://www.nxtbook.com/nxtbooks/impressions/teamspirit_2016fall
https://www.nxtbook.com/nxtbooks/impressions/20160607
https://www.nxtbook.com/nxtbooks/impressions/201605
https://www.nxtbook.com/nxtbooks/impressions/201604
https://www.nxtbook.com/nxtbooks/impressions/201603
https://www.nxtbook.com/nxtbooks/impressions/teamspirit_2016spring
https://www.nxtbook.com/nxtbooks/impressions/201602
https://www.nxtbook.com/nxtbooks/impressions/201601
https://www.nxtbook.com/nxtbooks/impressions/sportsfanretailer_201512
https://www.nxtbook.com/nxtbooks/impressions/201512
https://www.nxtbook.com/nxtbooks/impressions/digitaldecorator_2015fall
https://www.nxtbook.com/nxtbooks/impressions/201510
https://www.nxtbook.com/nxtbooks/impressions/201509
https://www.nxtbook.com/nxtbooks/impressions/201508
https://www.nxtbook.com/nxtbooks/impressions/teamspirit_2015fall
https://www.nxtbook.com/nxtbooks/impressions/20150607
https://www.nxtbook.com/nxtbooks/impressions/digitaldecorator_2015summer
https://www.nxtbook.com/nxtbooks/impressions/sportsfanretailer_201506
https://www.nxtbook.com/nxtbooks/impressions/201504
https://www.nxtbook.com/nxtbooks/impressions/201503
https://www.nxtbook.com/nxtbooks/impressions/teamspirit_2015spring
https://www.nxtbook.com/nxtbooks/impressions/201502
https://www.nxtbook.com/nxtbooks/impressions/201501
https://www.nxtbook.com/nxtbooks/impressions/sportsfanretailer_201412
https://www.nxtbook.com/nxtbooks/impressions/201412
https://www.nxtbook.com/nxtbooks/impressions/201410
https://www.nxtbook.com/nxtbooks/impressions/sportsfanretailer_2014fall
https://www.nxtbook.com/nxtbooks/impressions/201409
https://www.nxtbook.com/nxtbooks/impressions/201408
https://www.nxtbook.com/nxtbooks/impressions/teamspirit_2014fall
https://www.nxtbook.com/nxtbooks/impressions/digitaldecorator_2014summer
https://www.nxtbook.com/nxtbooks/impressions/20140607
https://www.nxtbook.com/nxtbooks/impressions/sportsfanretailer_2014spring
https://www.nxtbook.com/nxtbooks/impressions/201404
https://www.nxtbook.com/nxtbooks/impressions/201403
https://www.nxtbook.com/nxtbooks/impressions/teamspirit_2014spring
https://www.nxtbook.com/nxtbooks/impressions/201402
https://www.nxtbook.com/nxtbooks/nielsen/impressions_201401
https://www.nxtbook.com/nxtbooks/nielsen/impressions_sportsfanretailer_201312
https://www.nxtbook.com/nxtbooks/nielsen/impressions_201312
https://www.nxtbook.com/nxtbooks/nielsen/impressions_20131011
https://www.nxtbook.com/nxtbooks/nielsen/impressions_201309
https://www.nxtbook.com/nxtbooks/nielsen/impressions_201308
https://www.nxtbook.com/nxtbooks/nielsen/impressions_teamspirit_2013fall
https://www.nxtbook.com/nxtbooks/nielsen/impressions_20130607
https://www.nxtbook.com/nxtbooks/nielsen/impressions_201304
https://www.nxtbook.com/nxtbooks/nielsen/impressions_201303
https://www.nxtbook.com/nxtbooks/nielsen/impressions_teamspirit_2013spring
https://www.nxtbook.com/nxtbooks/nielsen/impressions_201302
https://www.nxtbook.com/nxtbooks/nielsen/impressions_201301
https://www.nxtbook.com/nxtbooks/nielsen/impressions_201212
https://www.nxtbook.com/nxtbooks/nielsen/impressions_20121011
https://www.nxtbook.com/nxtbooks/nielsen/impressions_teamspirit_2012fall
https://www.nxtbook.com/nxtbooks/nielsen/impressions_20120809
https://www.nxtbook.com/nxtbooks/nielsen/impressions_20120607
https://www.nxtbook.com/nxtbooks/nielsen/impressions_201204
https://www.nxtbook.com/nxtbooks/nielsen/impressions_201203
https://www.nxtbook.com/nxtbooks/nielsen/impressions_teamspirit_2012spring
https://www.nxtbook.com/nxtbooks/nielsen/impressions_201202
https://www.nxtbook.com/nxtbooks/nielsen/impressions_201201
https://www.nxtbook.com/nxtbooks/nielsen/impressions_201112
https://www.nxtbook.com/nxtbooks/nielsen/impressions_20111011
https://www.nxtbook.com/nxtbooks/nielsen/impressions_20110809
https://www.nxtbook.com/nxtbooks/nielsen/impressions_teamspirit_2011fall
https://www.nxtbook.com/nxtbooks/nielsen/impressions_20110607
https://www.nxtbook.com/nxtbooks/nielsen/impressions_201104
https://www.nxtbook.com/nxtbooks/nielsen/impressions_201103
https://www.nxtbook.com/nxtbooks/nielsen/impressions_teamspirit_2011spring
https://www.nxtbook.com/nxtbooks/nielsen/impressions_201102
https://www.nxtbook.com/nxtbooks/nielsen/impressions_201101
https://www.nxtbook.com/nxtbooks/nielsen/impressions_sourcebook2010
https://www.nxtbook.com/nxtbooks/nielsen/impressions_20101112
https://www.nxtbook.com/nxtbooks/nielsen/impressions_20100910
https://www.nxtbook.com/nxtbooks/nielsen/impressions_teamspirit_2010fall
https://www.nxtbook.com/nxtbooks/nielsen/impressions_20100708
https://www.nxtbook.com/nxtbooks/nielsen/impressions_201004
https://www.nxtbook.com/nxtbooks/nielsen/impressions_teamspirit_2010winter
https://www.nxtbook.com/nxtbooks/nielsen/impressions_201003
https://www.nxtbook.com/nxtbooks/nielsen/impressions_201002
https://www.nxtbook.com/nxtbooks/nielsen/impressions_200909
https://www.nxtbook.com/nxtbooks/nielsen/impressions_eco_2009fall
https://www.nxtbook.com/nxtbooks/nielsen/impressions_teamspirit_2009fall
https://www.nxtbook.com/nxtbooks/nielsen/impressions_200910
https://www.nxtbook.com/nxtbooks/nielsen/impressions_20091112
https://www.nxtbook.com/nxtbooks/nielsen/impressions_sourcebook_200906
https://www.nxtbook.com/nxtbooks/nielsen/impressions_201001
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