For many years I worked very hard trying to make a living with my embroidery business and no matter how many hours I put into it or how hard I worked, I just could not seem to make ends meet! I could not understand what I was doing wrong. I was at the point where I had to make a decision, either I figure out how to turn this business around or close the doors! I could not do that; I had 32 employees at that time and they depended on me! That alone was a huge responsibility!
I finally sat down with my accountant and he told me that I need to raise my prices. I was scared to death to raise my prices; I would loose all of my customers! He told me that I needed to start keeping track of every movement that I made in my shop. At first I thought that he was way off base and did not understand how my business worked. I thought there was no way that I could track everything, but he showed me exactly how to do it!. After a week of keeping track of all of the steps that actually went into each job, I discovered that I had been loosing a lot more money than I originally thought! I also discovered that I had no choice but to raise my prices! I was giving all of my work away and absolutely not making any money! My employees were the only ones that were benefiting from this business! I was not getting anything from it except a huge headache and a lot of sleepless nights!
I understand! I felt exactly the same way. I knew all along that I needed to raise my prices but how could I do that and not loose my customers? I was working way too many hours a week, but I was not making enough to even take home a paycheck! Are you able to take a paycheck from your embroidery business? My accountant said this was no way to run a business and we was right!
I was clueless when it came to how to price my embroidery! I just doing what everyone else was doing! That was not the way to go, but I did not know any different! I had no business background and up until a short period before my accountant started helping me, I did not even have an accountant!