Embroidery digitizing in-house vs outsourcing
It’s common knowledge that starting an embroidery or screen printing business at home makes individuals feel more secure since they can see everything that’s going on, which is true to some extent, but did you know?
A lot of people don’t have a lot of experience in the embroidery digitizing sector, so it may be difficult for them to get started.
Cost of Digitizing software
The cost of digitizing a piece of software is the sum of all costs that are incurred to create, maintain and distribute digital versions of the software.
The term “digitize” can be used in different ways: it may refer to the process of converting physical items into digital files (e.g, images), or it may refer to the conversion of data into a digital format (e.g., text). In this case, we will focus on the first meaning.
The most important cost factor is the license fee. This is usually paid once per year, and covers the use of the software over one full year.
It includes the price of the application itself, plus any updates or upgrades that were released during the previous year.
Cost of expert digitizer
Digitizers are experts who convert your designs into a digital format. They work with CAD programs such as AutoCAD or SolidWorks and then export the design into a file that can be viewed by the embroidery machine.
Digitizers also help customers understand how their designs should look on fabric before they begin production.
Digitizers charge anywhere from $40-$100 per hour depending on what kind of expertise they possess. If you’re looking for a professional digitizer, expect to pay between $80-$150 per hour.
However, if you want to save money, you can find cheap digitizers online. You just need to search around for the right company.
You’ll probably have to pay a deposit upfront, and then monthly payments after that. Some companies require payment up front, others allow you to pay off the balance over time.
Management and expenses of dedicated setup
The following table shows the management and expenses for a dedicated setup. The figures are based on an average annual production level of 1,000 tonnes per year.
Management & Expenses Dedicated Setup*
- Maintenance – $3,500
- Setup – $10,000
- Total – $13,500
Based on an estimated annual production level of 1 tonne per week.
Time frame of setup
In order to set up a new embroidery or screenprinting business, you’ll need to invest a considerable amount of time and effort.
Depending on the size of your operation, you could spend anywhere from two weeks to six months setting up your entire system.
In addition to the time required to set up your equipment, you’ll also need to plan ahead for training sessions, digitization services, etc.
If you decide to outsource these tasks, you can expect to complete them within three to four weeks.
Costs associated with outsourcing
If you choose to outsource your digitizing needs, you’ll need to take into account additional costs. These include shipping fees, taxes, insurance, storage charges, etc.
For example, let’s say you hire a professional digitizer to digitize your designs. This person will ship the files directly to your manufacturer, and you’ll only need to cover the shipping costs. Your manufacturer will then send the files back to you.
However, if you choose to digitize yourself, you’ll need to purchase the software, install it, train your employees, and perform other administrative tasks.
This means that you’ll need to budget for all of these extra costs. In some cases, you may even need to buy more than one package of software because you won’t be able to share licenses with multiple users.
Licensing fees vary depending on the type of software you use. For example, you can get free versions of Adobe Illustrator or CorelDRAW. But if you want to use Autodesk Inventor, you’ll need to pay a licensing fee.
Licensing fees can range from $0-$1,200 per user. Most companies offer discounts for larger orders.
Training requirements
Depending on the type of software used, you may need to undergo extensive training. For example, you’ll need to learn how to use Photoshop, Illustrator, and Inventor.
Some programs such as CorelDRAW and AutoCAD are much easier to use than others. So, before you begin digitizing, you should familiarize yourself with each program.
Software maintenance
Software maintenance refers to keeping your software updated. For example, you may need to update your software every time a new version comes out.
Some companies provide automatic updates, whereas others charge a small fee for this service.
Shipping fees
Shipping fees depend on where you’re located. If you’re buying products online, you’ll have to factor in shipping costs as well.
Taxes
Taxes can add another 2% to 3% to your total bill. Some states require businesses to collect sales tax, and others don’t.
To avoid any surprises, check with your state government about what types of taxes apply to your industry.
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