Education

Appliqué Costing Guide

Based on Price Per Shop Hour


Example: Appliqué design is 40 square inches (B), contains 4400 stitches (C) and the cut piece price is $ 1.40. We are running the machine at 650 spm (A) and our shop costs per hour (D) as below.
   
Average stitches per minute (spm) (A) 650 spm
Size of appliqué in square inches (B) 40 sq. in.
(multiply design length by design width)  
Stitch count of appliqué design (C) 4400 stitches
Pricing structure for your shop (D) see below per hour
a. Price per hour
 
   
CALCULATION
1. Calculate price per minute  
a. ___________ ÷ 60 (minutes)
(F)___________ ppm
Price per shop hour (D)
     Price per minute
   
First we determine our price per minute: $ 50.00/hr ÷ 60 =   $   .84 ppm (F) for Single Head
  $ 62.50/hr ÷ 60 =   $ 1.04 ppm (F) for Four Head
  $ 75.00/hr ÷ 60 =   $ 1.25 ppm (F) for Six Head

Number of heads sewing One Head 4 Heads 6 Heads
Cut piece price    $ 1.40 $ 5.60 $ 8.40
Sew time (4400 st ÷ 650 spm x  ppm) + $ 5.69 $ 7.04 $ 8.46
Placement time (1 minute x  ppm) + $   .84 $ 4.16 $ 7.50
Total cost per machine $ 7.93(1) $ 16.80 ÷ (4) $ 24.36 ÷ (6)
Cost per appliqué $ 7.93 ea $ 4.20 ea $ 4.06 ea
       
Add mark up - 50% mark up $  3.97 ea $  2.10 ea $  2.03 ea
  $ 11.90 ea $ 6.30 ea $ 6.09 ea
       
Add mark up - 100% mark up $ 7.93 ea $ 4.20 ea $ 4.06
  $ 15.86 ea $ 8.40 ea $ 8.12 ea
 
Dalco Athletic Lettering ©
Revised March 15, 2004

Copyright © 2006 Dalco Athletic Lettering Company. All rights reserved.