pricing for custom embroidery on handbags

I have a few questions about a job I've taken on...
I embroider fabric handbags before they are sewn together on a weekly basis for a custom handbag studio. I really enjoy it but I feel as though I may be underpaid and need to know what I should be charging. I am becoming busy with other orders and I want this to be worth my time. I am being paid as follows:
$4.00-one small letter
2" letter-6.00
3" letter 7.00
$6.50-two letters
$9.00-three letters or a name

The store charges the customer double the amount for embroidery.
I do not have a minimum charge, how do I determine how much that should be?
I pickup the order and deliver it in one week. Many times they need something ASAP and since I live close I say yes. Gas is too expensive now and I need to charge for pick up and delivery. What should I charge for pick and delivery? Any thoughts would be great!

Location: 
United States
Robert Young's picture

Debbi, For our market here in San Antonio your prices sound very similar..., The only thing I would suggest is make someone from the store do drop off and pick up for rushes , you have your standard weekly run, anything outside of that schedule they either transport or you could impose a $25 rush fee for that additional service. Just my opinion.

Modern Embroidery Designer
volant-tech.com
volantfineart.com

Robert Young wrote:
Debbi, For our market here in San Antonio your prices sound very similar..., The only thing I would suggest is make someone from the store do drop off and pick up for rushes , you have your standard weekly run, anything outside of that schedule they either transport or you could impose a $25 rush fee for that additional service. Just my opinion.

Thanks so much to both who answered... I think I will charge a delivery fee but also remember that it has to be reasonable , they are loyal and I wouldn't want to lose the account. Thanks for helping, sometimes you wonder if prices are ok, etc.

exactly, the store is charging double they can come get the stuff. I always charge a 25% rush delivery for anything that needs to be done fast. SO i think theyre getting a pretty good deal from you. Although you have to think how many units does the store give you, and how long have they been dealing with you for. If a company stays loyal its usually three factors price location and service. Your service may be keeping them from switching. Your location isn't far you said so i wouldn't worry there. But i would either charge for pick up and delivery or include it in the price. Everyone likes to hear theyre getting something for free.

SunEmbroidery's picture

I agree that your prices sound right but I'm wondering what your weekly quantity is and how much set-up time you spend. If your quantity is low then you might establish higher pricing for smaller quantities. I would definitly charge extra for rush orders that require to pick-up additional times and disrupt your production schedule.