Embroidery Pricing Guide 2026: How to Use Stitch Count to Avoid Losses

The Silent Killer of Embroidery Profits

In the embroidery business, quoting based on "feeling" or rough estimates is the fastest way to lose money. Whether you run a single-head machine in your garage or a multi-head industrial setup, the principle is the same: Time is money, and stitches take time.

If you estimate 5,000 stitches but the design runs 8,000, you are eating the cost of those extra 3,000 stitches. Over a year, these small miscalculations can add up to thousands of dollars in lost revenue.

The Real Cost breakdown

Every stitch consumes three resources:

Consumables: Thread, backing, and needles.
Machine Time: While your machine is running a low-margin job, it cannot run a high-margin one.
Operator Labor: Hooping, trimming, and monitoring the machine.

Why "Flat Rate" Pricing is Dangerous

Many beginners charge a flat rate for "left chest logos" regardless of complexity.

Scenario A: A simple text logo (3,000 stitches). Runs in 4 minutes.
Scenario B: A dense, filled circle logo (12,000 stitches). Runs in 15 minutes.

If you charge $10 for both, you are making significantly less profit per hour on Scenario B.

How to Price Correctly in 2026

The industry standard for pricing is often based on a "Per 1,000 Stitches" model, combined with a minimum setup fee.

Step 1: Know Your Stitch Count Before You Quote

Never give a firm quote without seeing the artwork. Use a tool like our Stitch Calculator to analyze the design. It uses advanced algorithms to estimate the stitch count from a simple image file.

Pro Tip: Always add a 10-15% buffer to estimated stitch counts to account for underlay and dense areas.

Step 2: Calculate Your "Shop Rate"

Determine how much it costs to keep your shop open for one hour (rent, electricity, insurance, wages). Example: If your shop costs $50/hour to run and you want a 30% profit margin, you need to generate $65/hour.

Step 3: Use the Formula

(Stitch Count / Machine Speed) + Hooping Time = Total Production Time

If a 10,000 stitch design takes 15 minutes to hoop and sew, you can only do 4 per hour. If you need to make $65/hour, you must charge at least $16.25 per item.

Tools to Help You Succeed

You don't need to do this math manually every time.

Embroidery Quick Quote Calculator: Our free tool gives you an instant estimate of stitch count and suggests a price range based on industry standards.
CRM Software: Use software to track which types of designs are most profitable for you.

Conclusion

Don't leave your profits to chance. By using accurate stitch counts and knowing your true shop rate, you can ensure every job is profitable.

Start calculating your quotes now and stop guessing.