How to determine Embroidery costing for garments

If we talk about garment or apparel sector, we know embroidery is one of the most important sections in apparel industry. To make fashionable cloth or decorate the garments, we can use embroidery. Embroidery makes the garments for attractive to the customer. As we know, embroidery is one of the most important sections in garments industry, so as a merchandiser we have to calculate accurate embroidery cost for the garment.
For calculating embroidery costing, there are many factors are related to charge in garments. Main factors are given below to calculate the cost of embroidery.  
  • Total stitch number
  • Embroidery type
  • Estimate time to complete the batch
  • Thread color
  • Cutting of appliqué
  • Position of the embroidery
  • Resource and total manpower involves in doing embroidery
  • Restriction on use of embroidery thread
  • Any lab test require
As we know, per unit stitch is 12,000 stitches but sometime embroidery factory will not agree to accept any order on stitch, if the total production handling time is too long due to combination of work with patch and appliqué. 
1 unit embroidery = 12000 stitches

For determining the price of embroidery we need to know the following first and consider some parameters:
  1. Quantity of the design stitch
  2. Rate of per units
By using below formula, we can estimate the embroidery costing for garment;
Stitch quantity x 12 / 12000 x Rate per unit design

Find the below details with example to estimate the embroidery costing
Suppose, an order for buyer – H&M, qty- 50,000 pcs polo shirt. Now we have to calculate the embroidery cost, where the required data is in the following:
  • Stitch quantity – 9500
  • Per unit price for design - $0.30 per dozen
Embroidery cost = Stitch Quantity / 12000 x Rate per unit design
= 9,500 / 12,000 x $0.30 
= $0.237 / pcs

So, for 50,000 pcs garments we need total $11,750 (50000 pcs x $0.237) to complete the embroidery.