--- title: How to Profit in your Embroidery Business with Razor Thin Margins description: In this episode of the Apparel Academy podcast, Henry breaks down the economics behind making a profit in this industry, without pricing too extensively. image: https://info.ricoma.com/hubfs/TN%20youtube.00_36_19_13.Still003.jpg --- ![sale tag](https://ricoma.us/images/promos/tag.png) ##### LOW MONTHLY PAYMENTS: Payments as low as $133/month with 0% financing!\* [LEARN MORE!](https://info.ricoma.us/contact-us/o?utm_campaign=Organic%3A%20Ongoing%20promotion&utm_source=Organic) - Questions? ![Ricoma Phone](https://info.ricoma.com/hs-fs/hubfs/Ricoma_June2018/images/dd_icon_phone.png?width=25&name=dd_icon_phone.png)1-888-292-6282 - [![icoma Contact](https://info.ricoma.com/hs-fs/hubfs/Ricoma_June2018/images/contact-support-triangle.png?v9.96&width=10&name=contact-support-triangle.png)Contact Support](https://www.ricoma.us/tech-support) - [English](https://www.ricoma.us/) - [Español](https://www.ricoma.us/es) [![Ricoma - Thinks Beyond](https://info.ricoma.com/hubfs/Ricoma_June2018/images/Ricoma_logo_color_2.png)](http://ricoma.us/) [![Ricoma - Thinks Beyond](https://info.ricoma.com/hubfs/Ricoma_June2018/images/Ricoma_logo_white_2.png)](https://www.ricoma.us/) - ABOUT US - [MEET OUR TEAM](https://ricoma.com/US/about) - [Check out the faces behind the scenes](https://ricoma.com/US/about) - [GLOBAL FOOTPRINT](https://ricoma.com/US/about#globe) - [See our global influence and industry recognition](https://ricoma.com/US/about#globe) - [BRAND STORY](https://ricoma.com/US/about) - [Where we’ve been and where we’re going](https://ricoma.com/US/about) - [SHOP PRODUCTS](https://ricoma.com/US) - Single head - [SWD Series](https://ricoma.com/US/machine/swd-1501) - [15-needle commercial embroidery machine. 8-inch TrueColor HD touch-screen panel.](https://ricoma.com/US/machine/swd-1501) - [TC Series](https://ricoma.com/US/machine/1501-tc) - [15-needle commercial embroidery machine.7-inch touch-screen panel.](https://ricoma.com/US/machine/1501-tc) - [View Large Embroidery Solutions](https://www.ricoma.us/product/en/large-embroidery-solutions) - [MT Series (Single-head)](https://ricoma.com/US/machine/mt-1501) - [15-needle commercial embroidery machine. 7-inch touch-screen panel.](https://ricoma.com/US/machine/mt-1501) - [EM Series](https://ricoma.com/US/machine/em-1010) - [10-needle home embroidery machine. 7-inch touch-screen panel.](https://ricoma.com/US/machine/em-1010) - Multi head - [MT Series (Two-head)](https://ricoma.com/US/machine/mt-1502) - [Two-head commercial embroidery machine. 15 needles per head. 7-inch touch-screen panel.](https://ricoma.com/US/machine/mt-1502) - [CHT2 Series](https://ricoma.com/US/machine/cht2-series) - [High speed tubular commercial embroidery machines available up to 12 heads. 15-needles per head. 10-inch touch-screen panel.](https://ricoma.com/US/machine/cht2-series) - software - [EmbroideryStudio e4 Designing](https://www.ricoma.us/product/en/embroiderystudio-e4-designing) - [Easy-to-use embroidery digitizing software. Create embroidery designs from start to finish.](https://www.ricoma.us/product/en/embroiderystudio-e4-designing) - [Wilcom DecoStudio E3 Lite](https://www.ricoma.us/product/en/wilcom-decostudio-e3-lite) - [Lite embroidery digitizing software. Update digitized designs by adding stylized text to imported designs.](https://www.ricoma.us/product/en/wilcom-decostudio-e3-lite) - [Chroma](https://ricoma.com/US/software/chroma) - [Digitize and create even the most intricate designs with ease and speed.](https://ricoma.com/US/software/chroma) - [Shop all products >](https://ricoma.com/US) - flatbed - [FHT Series](https://www.ricoma.us/product/en/fht-series) - [High-speed, 15-needle flatbed embroidery machines. Up to 30 heads. 8-inch LCD monitor.](https://www.ricoma.us/product/en/fht-series) - GO EVEN FURTHER - Supplement your core business. Add heat-pressed mugs, plates, shirts and more to your product offerings, or purchase accessories that make embroidery a breeze. - [DTG & Heat Press](https://www.ricoma.us/shop-category/DTG%20%26%20Heat%20Press) - [Professional direct to garment printing machines and heat transfer equipment](https://www.ricoma.us/shop-category/DTG%20%26%20Heat%20Press) - [steam presses](https://www.ricoma.us/shop-category/steam-presses) - [Professional steam presses for a dry-clean finish on all types of garments.](https://www.ricoma.us/shop-category/steam-presses) - [accessories](https://shop.ricoma.com/collections/embroidery-machine-accessories) - [Hooping aides, additional frames, extended tables and more.](https://shop.ricoma.com/collections/embroidery-machine-accessories) - [cutters](https://shop.ricoma.com/collections/vinyl-cutters) - [Mass trimming fabric cutters. 6-, 8- and 10-inch blades.](https://shop.ricoma.com/collections/fabric-cutters/type_knife-cutter) - RESOURCES - [TRAINING + RESOURCES](https://www.ricoma.us/resources/training) - [Schedule a training session or download manuals, parts books and view instructional videos for the following models](https://www.ricoma.us/resources/training) - [EM Series](https://www.ricoma.us/resources/training/machine/em-series) - [MT Series](https://www.ricoma.us/resources/training/machine/mt-series-%28single-head%29) - [TC Series](https://www.ricoma.us/resources/training/machine/tc-series) - [CHT2 Series](https://www.ricoma.us/resources/training/machine/cht2-series) - [SWD Series](https://www.ricoma.us/resources/training/machine/swd-series) - [FINANCING](https://ricoma.com/US/financing) - [Personal financing & leasing made easy](https://ricoma.com/US/financing) - [FREE DOWNLOADS](https://ricoma.com/US/software/chroma) - [Free embroidery designs and software demos](https://ricoma.com/US/software/chroma) - [COMPARE MACHINES](https://www.ricoma.us/best-embroidery-machine-comparison) - [Videos & charts comparing different Ricoma models](https://www.ricoma.us/best-embroidery-machine-comparison) - [GLOSSARY + FAQ](https://www.ricoma.us/resources/glossary) - [Embroidery terms and frequently asked questions](https://www.ricoma.us/resources/glossary) - [WARRANTY](https://ricoma.com/US/warranty) - [Check out our 5-year limited warranty details](https://ricoma.com/US/warranty) - [REFERRAL PROGRAM](https://www.ricoma.us/refer-a-friend) - [Refer a friend and receive Ricoma credit](https://www.ricoma.us/refer-a-friend) - CUSTOMER SUCCESS - [REVIEWS](https://www.ricoma.us/reviews) - [Find out what our customers are saying](https://www.ricoma.us/reviews) - [CASE STUDIES](https://www.ricoma.us/customer-success/case-studies) - [See how our customers have succeeded](https://www.ricoma.us/customer-success/case-studies) - [SUBMIT REVIEW](https://www.ricoma.us/customer-success/review) - [Tell us what you think](https://www.ricoma.us/customer-success/review) - NEWS & EVENTS - [NEWS & BLOG](https://blog.ricoma.com/) - [Ricoma news, tips, embroidery how-to and more](https://blog.ricoma.com/) - [VIRTUAL DEMOS](https://ricoma.com/US/virtual-demo) - [See our machines running live](https://ricoma.com/US/virtual-demo) - [TRADE SHOWS](https://ricoma.com/US/events/tradeshows) - [View our upcoming trade shows](https://ricoma.com/US/events/tradeshows) - [RICOMA INSIGHTS](https://ricoma.com/US/insights) - [Get the latest scoop on Ricoma](https://ricoma.com/US/insights) - [RICOMA EVENTS](https://ricoma.com/US/events) - [Join us at an exclusive Ricoma event](https://ricoma.com/US/events) - [Contact Us](https://ricoma.com/US/contact-us) [![Ricoma English](https://info.ricoma.com/hubfs/Ricoma_June2018/images/usa.png "English")](https://www.ricoma.us/es) [![Ricoma](https://info.ricoma.com/hubfs/Ricoma_June2018/images/R-orange.png)](https://info.ricoma.us/blog) [![Ricoma Logo](https://info.ricoma.com/hs-fs/hubfs/Ricoma%20Logo.png?width=152&name=Ricoma%20Logo.png)](http://info.ricoma.us/blog) - ABOUT US - [MEET OUR TEAM](https://ricoma.com/US/about) - [Check out the faces behind the scenes](https://ricoma.com/US/about) - [GLOBAL FOOTPRINT](https://ricoma.com/US/about#globe) - [See our global influence and industry recognition](https://ricoma.com/US/about#globe) - [BRAND STORY](https://ricoma.com/US/about) - [Where we’ve been and where we’re going](https://ricoma.com/US/about) - [SHOP PRODUCTS](https://ricoma.com/US) - Single head - [SWD Series](https://ricoma.com/US/machine/swd-1501) - [15-needle commercial embroidery machine. 8-inch TrueColor HD touch-screen panel.](https://ricoma.com/US/machine/swd-1501) - [TC Series](https://ricoma.com/US/machine/1501-tc) - [15-needle commercial embroidery machine.7-inch touch-screen panel.](https://ricoma.com/US/machine/1501-tc) - [View Large Embroidery Solutions](https://www.ricoma.us/product/en/large-embroidery-solutions) - [MT Series (Single-head)](https://ricoma.com/US/machine/mt-1501) - [15-needle commercial embroidery machine. 7-inch touch-screen panel.](https://ricoma.com/US/machine/mt-1501) - [EM Series](https://ricoma.com/US/machine/em-1010) - [10-needle home embroidery machine. 7-inch touch-screen panel.](https://ricoma.com/US/machine/em-1010) - Multi head - [MT Series (Two-head)](https://ricoma.com/US/machine/mt-1502) - [Two-head commercial embroidery machine. 15 needles per head. 7-inch touch-screen panel.](https://ricoma.com/US/machine/mt-1502) - [CHT2 Series](https://ricoma.com/US/machine/cht2-series) - [High speed tubular commercial embroidery machines available up to 12 heads. 15-needles per head. 10-inch touch-screen panel.](https://ricoma.com/US/machine/cht2-series) - software - [EmbroideryStudio e4 Designing](https://www.ricoma.us/product/en/embroiderystudio-e4-designing) - [Easy-to-use embroidery digitizing software. Create embroidery designs from start to finish.](https://www.ricoma.us/product/en/embroiderystudio-e4-designing) - [Wilcom DecoStudio E3 Lite](https://www.ricoma.us/product/en/wilcom-decostudio-e3-lite) - [Lite embroidery digitizing software. Update digitized designs by adding stylized text to imported designs.](https://www.ricoma.us/product/en/wilcom-decostudio-e3-lite) - [Chroma](https://ricoma.com/US/software/chroma) - [Digitize and create even the most intricate designs with ease and speed.](https://ricoma.com/US/software/chroma) - [Shop all products >](https://ricoma.com/US) - flatbed - [FHT Series](https://www.ricoma.us/product/en/fht-series) - [High-speed, 15-needle flatbed embroidery machines. Up to 30 heads. 8-inch LCD monitor.](https://www.ricoma.us/product/en/fht-series) - GO EVEN FURTHER - Supplement your core business. Add heat-pressed mugs, plates, shirts and more to your product offerings, or purchase accessories that make embroidery a breeze. - [DTG & Heat Press](https://www.ricoma.us/shop-category/DTG%20%26%20Heat%20Press) - [Professional direct to garment printing machines and heat transfer equipment](https://www.ricoma.us/shop-category/DTG%20%26%20Heat%20Press) - [steam presses](https://www.ricoma.us/shop-category/steam-presses) - [Professional steam presses for a dry-clean finish on all types of garments.](https://www.ricoma.us/shop-category/steam-presses) - [accessories](https://shop.ricoma.com/collections/embroidery-machine-accessories) - [Hooping aides, additional frames, extended tables and more.](https://shop.ricoma.com/collections/embroidery-machine-accessories) - [cutters](https://shop.ricoma.com/collections/vinyl-cutters) - [Mass trimming fabric cutters. 6-, 8- and 10-inch blades.](https://shop.ricoma.com/collections/fabric-cutters/type_knife-cutter) - RESOURCES - [TRAINING + RESOURCES](https://www.ricoma.us/resources/training) - [Schedule a training session or download manuals, parts books and view instructional videos for the following models](https://www.ricoma.us/resources/training) - [EM Series](https://www.ricoma.us/resources/training/machine/em-series) - [MT Series](https://www.ricoma.us/resources/training/machine/mt-series-%28single-head%29) - [TC Series](https://www.ricoma.us/resources/training/machine/tc-series) - [CHT2 Series](https://www.ricoma.us/resources/training/machine/cht2-series) - [SWD Series](https://www.ricoma.us/resources/training/machine/swd-series) - [FINANCING](https://ricoma.com/US/financing) - [Personal financing & leasing made easy](https://ricoma.com/US/financing) - [FREE DOWNLOADS](https://ricoma.com/US/software/chroma) - [Free embroidery designs and software demos](https://ricoma.com/US/software/chroma) - [COMPARE MACHINES](https://www.ricoma.us/best-embroidery-machine-comparison) - [Videos & charts comparing different Ricoma models](https://www.ricoma.us/best-embroidery-machine-comparison) - [GLOSSARY + FAQ](https://www.ricoma.us/resources/glossary) - [Embroidery terms and frequently asked questions](https://www.ricoma.us/resources/glossary) - [WARRANTY](https://ricoma.com/US/warranty) - [Check out our 5-year limited warranty details](https://ricoma.com/US/warranty) - [REFERRAL PROGRAM](https://www.ricoma.us/refer-a-friend) - [Refer a friend and receive Ricoma credit](https://www.ricoma.us/refer-a-friend) - CUSTOMER SUCCESS - [REVIEWS](https://www.ricoma.us/reviews) - [Find out what our customers are saying](https://www.ricoma.us/reviews) - [CASE STUDIES](https://www.ricoma.us/customer-success/case-studies) - [See how our customers have succeeded](https://www.ricoma.us/customer-success/case-studies) - [SUBMIT REVIEW](https://www.ricoma.us/customer-success/review) - [Tell us what you think](https://www.ricoma.us/customer-success/review) - NEWS & EVENTS - [NEWS & BLOG](https://blog.ricoma.com/) - [Ricoma news, tips, embroidery how-to and more](https://blog.ricoma.com/) - [VIRTUAL DEMOS](https://ricoma.com/US/virtual-demo) - [See our machines running live](https://ricoma.com/US/virtual-demo) - [TRADE SHOWS](https://ricoma.com/US/events/tradeshows) - [View our upcoming trade shows](https://ricoma.com/US/events/tradeshows) - [RICOMA INSIGHTS](https://ricoma.com/US/insights) - [Get the latest scoop on Ricoma](https://ricoma.com/US/insights) - [RICOMA EVENTS](https://ricoma.com/US/events) - [Join us at an exclusive Ricoma event](https://ricoma.com/US/events) - [Contact Us](https://ricoma.com/US/contact-us) ABOUT US We’re a team of motivated professionals dedicated to providing business opportunities. Learn more about the people who make it all happen. SHOP PRODUCTS Shop our wide range of home and commercial embroidery machines, heat presses, cutters, accessories and more. Beginner or longtime embroidery expert, there’s a product for everyone at Ricoma. MT SERIES (TWO-HEAD) ![Ricoma](https://info.ricoma.com/hs-fs/hubfs/Ricoma_June2018/images/dropdown_MT_02.png?width=160&name=dropdown_MT_02.png) Suitable for all embroidery needs, this 15-needle multi-head embroidery machine can embroider on caps, flats, bags, finished garments and more. [View](https://www.ricoma.us/product/en/mt-series-%28two-head%29) RESOURCES Getting started in the embroidery business? Gain access to training videos, industry terms, free downloads and more. CUSTOMER SUCCESS We’ve helped embroidery businesses start and expand in over 130 countries. See what you can achieve with us. NEWS & EVENTS Keep up with us! Your source for embroidery how-to, business tips, company news and more. ![sale tag](https://ricoma.us/images/promos/tag.png) ##### LOW MONTHLY PAYMENTS: Payments as low as $133/month with 0% financing!\* [LEARN MORE!](https://info.ricoma.us/contact-us/o?utm_campaign=Organic%3A%20Ongoing%20promotion&utm_source=Organic) # Don't Get Crushed by Razor Thin Margins | Podcast ![TN youtube.00_36_19_13.Still003](https://info.ricoma.com/hs-fs/hubfs/TN%20youtube.00_36_19_13.Still003.jpg?width=591&name=TN%20youtube.00_36_19_13.Still003.jpg) ##### “Automatically, the multi-head owner is given 6X the production capability **SIMPLY** because they have more heads. Hence, they are able to price their items lower than a single head owner could!" [Tweet](https://twitter.com/intent/tweet) [Mail](mailto:?subject=How%20to%20Profit%20in%20your%20Embroidery%20Business%20with%20Razor%20Thin%20Margins&body=See%20more%20athttps://info.ricoma.com/blog/how-to-profit-in-your-embroidery-business-with-razor-thin-margins) [](https://www.ricoma.us/blog/post/5-machine-embroidery-ideas-for-a-memorable-thanksgiving-dinner)   ### Complete the form below for your complimentary consultation! X   Ever wonder how some embroiderers can price their embroidered items below industry average ***AND still*** profit? In this episode of the Apparel Academy Podcast, Henry answers a few questions from our Facebook group, [Embroidery and Custom Apparel Mastery](https://www.facebook.com/groups/embroiderymastery), and breaks down the economics behind making a profit in this industry, without pricing *too* extensively. You can also follow along with the audio link below!   ### **#1: Low pricing, yet still profitable** The main reason people are able to price their items high, even with razor thin margins, is because they most likely have a few multi head machines **OR…** They have a setup which is conducive for them to take on bulk orders. What is considered a high price? We’re talking about charging $10-$12 per hat and ***still*** ending up with a profit! This is **only** possible with an efficient workflow that allows for the business to produce multiple products. Let’s look at the comparison between a 6-head and a single-head for instance and what that could mean for the profit potential of each business owner. These machine owners have the very **SAME** target profit amount per hour in mind.  Automatically, the multi-head owner is given 6X the production capability **SIMPLY** because they have more heads. Hence, they are able to price their items lower than a single head owner could! The single head embroiderer on the other hand, will only be able to maximize profit by charging higher for their few personalized items. However, this could still end up working in their favor, depending on how often he or she is offered custom design work. If you’ve never heard about the “**the magic number,**” [this webinar will tell you all about it! We talk about a price structure that can help embroiderers when pricing their products.](https://info.ricoma.com/the-number-one-factor-in-determining-profitability/) It is important to price your items correctly, while still remaining competitive.   ### **#2: Let’s consider equipment costs and capabilities** There are a few things to consider when using the pricing method above. When investing in a multi-head machine, there is more of an upfront, long-standing commitment because there is a longer payback time involved. **The cost of a multi-head is also higher, which attributes to the longer payback time.** Single-heads give you the ability to personalize smaller, one-off orders, which are not as economical with a multi-head machine. On the other hand, multi-heads give you an advantage and increases value when it comes to bulk orders! [If you’re ready to take your productivity to the next level and expand your business, consider investing in a multi-head!](https://info.ricoma.com/multi-head-sale/o?utm_campaign=Multi-head%20Ongoing%20Promo%20-%20Organic&utm_source=Organic)   ### **#3: Personalizing items VS. Producing more ** As the embroiderer, if you take the time to personalize your offerings, you improve your chances of standing out from your competitors.  This can be done with one-off orders and easily brought to life with a single head. The more time you take to **personalize**, the more you are able to price your items according to the **time taken** to design and specifically craft each item, for your customers’ needs.  These are the little things that add more value and customers are willing to pay more just because it is customized. However with the multi-head, you automatically get **more**.  Your productivity goes up and you are then able to price lower as your production increases. [If you’re interested in what a multi-head or even a single-head could do for your business, contact us today!](https://www.ricoma.us/contactus)   ### **BOTTOM LINE** When it comes to making financial decisions about your embroidery business, you have to decide what your trade off is. If you know your business is designed to produce **smaller, personalized** items, you can still be profitable with a single head, as you will be able to charge accordingly for these personalized items. However, if you know your business strictly focuses on **large scale, bulk orders**, then you may want to consider investing in a multi-head. If you have a custom apparel business or are thinking of starting one, what are some of the questions you’ve been considering? Have we answered any of them here? Leave a comment below or let us know on our [Facebook group, Embroidery & Custom Apparel Mastery.](https://www.facebook.com/groups/embroiderymastery) For additional help, feel free to join our free Facebook group,[**Embroidery and Custom Apparel Mastery**.](https://www.facebook.com/groups/embroiderymastery) In it, over 10,000 members share their thoughts about embroidery, give insight on various embroidery related issues and provide connections to wholesale items and even jobs! [![Join the group!](https://no-cache.hubspot.com/cta/default/3019581/156d7e1d-c870-407e-adb9-87c71e863894.png)](https://cta-redirect.hubspot.com/cta/redirect/3019581/156d7e1d-c870-407e-adb9-87c71e863894) About the Author Raegan Daley is the content specialist at Ricoma Embroidery Machines. Ricoma engineers, manufactures, and distributes embroidery equipment worldwide. To support both the industry and its customers, Ricoma regularly creates blog and video content to give both beginners and experts the confidence to start or grow their custom apparel business with embroidery. For more information regarding Ricoma, visit [www.ricoma.us/contactus](http://www.ricoma.us/contactus). To contact Raegan directly, email [raegan](mailto:raegan@ricoma.com)[@ricoma.com](mailto:raegan@ricoma.com). #### [Business Tips Hiring an Embroidery Operator? 4 Questions to Ask Yourself](https://info.ricoma.com/blog/4-questions-to-ask-before-hiring-an-embroidery-operator) #### [Case Studies Embroiderer Spotlight: Jennifer Moore](https://info.ricoma.com/blog/from-cnn-reporter-to-full-time-sewing-reporter) #### [Business Tips Drop Shipping vs. Keeping Production In-House | Podcast](https://info.ricoma.com/blog/drop-shipping-vs-keeping-production-in-house-podcast) Please enable JavaScript to view the [comments powered by Disqus.](https://disqus.com/?ref_noscript) [![](https://info.ricoma.com/hubfs/Presidents%20Day%20Sale%20Banner.png)](https://info.ricoma.com/presidents-day-sale-2020/o?utm_campaign=President%E2%80%99s%20Day%20Sale%202020%20%E2%80%93%20Organic&utm_source=Organic) [![view reviews of our company](https://info.ricoma.com/hubfs/Ricoma_June2018/images/Machine-comparison-SB-reviews.jpg)](https://www.ricoma.us/reviews) [![join our newsletter](https://info.ricoma.com/hubfs/Ricoma_June2018/images/Machine-comparison-SB-newsletter.jpg)](https://info.ricoma.us/newsletter/) ![Rocima Newsletter](https://info.ricoma.com/hubfs/Ricoma_June2018/images/home_newsletter_icon.png) #### Sign up for our newsletter Keep up with our latest promotions and industry news! 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