“How To Control Costing In Your Embroidery Business And Make It More Profitable!”
Learning how to control costing in your embroidery business is extremely important! Whether you are just starting your embroidery business, trying to grow your embroidery business or create a more profitable embroidery business controlling or reducing your costs can create the difference between losing money, just breaking even or creating a small profit or even a larger profit! There are 3 costing factors that you must be aware of and keep of good eye on at all time that will help to reduce these costs.
• Production Costs
• Inventory Costs
• Wastage or Spoilage Costs
How To Cut Your Embroidery Production Costs
You must carefully analyze all of your Production Costs! You should know what each and every piece of your production is costing you. Review all of your production processes to see if there is a way for you to develop an easier method or a shorter time for each one of your processes.
If you have not done so in the past, start timing each of your processes. Each operator should be carefully observed as they are performing each step. Maybe there is something that was missed in their training or they are taking an extra step that could be cut out. This is very important. Each job process should be timed over and over to determine the most efficient way of performing that task.
Each separate process of the job should be kept track of from start to finish determining its true cost. An easy way to do this is having your operators punch a time clock at the beginning and end of each process. An inexpensive time clock can be purchased to be placed in the center of the production area for this purpose. This will not be the same time clock that is used for clocking in at the beginning of the day. That clock needs to be in the entry way as they come in the door.
When an employee knows that they are being timed they have a tendency to move quicker and more efficiently. It is very important to start this process from the time that the order is taken until it is shipped out of the door. You over look a lot of time that it actually takes to produce that finished product if you are not carefully tracking every single movement and moment of time.
In our next tip, I will talk about your Embroidery Business Inventory Costs.
Joyce Jagger
The Embroidery Coach
