The flat pricing model was born out of an idea to make pricing for logo embroidered apparel easier for the customer to understand. It is pricing philosophy that is more customer focused and less producer focused.
Two components that make it for customer focused are the facts that it is easy to understand it is also very transparent. The traditional pricing models, those done by stitch count, are mostly something only the industry insiders understand which make it very confusing and less transparent.The basic idea behind a flat pricing model is that the embroidery of the logo is included or built into the price of the item-like the polo shirt or jacket. Therefore customers see one price for the custom embroidered polo shirt instead of one price for the shirt and the additional cost for the embroidered logo.
For example, if you see a price of $25 for an embroidered polo shirt, that price includes the embroidery of your logo. Pretty simple concept, right?
One of the biggest advantages of using a flat pricing model is that there is no need for a quote. Under stitch count pricing the embroidery shop has to figure out how many stitches it takes to create a logo in embroidery and then attach that cost to the shirt. That usually requires a getting the logo to the supplier so they can produce a quote based on that logo. That whole process adds a lot of time onto the front of the transaction.
In addition, a flat pricing model is transparent. Under a stitch count model, the embroidery shop holds all of the power in the pricing model. They are the ones how you will tell customers how many stitches in are a logo. The problem is that customers have no idea if the number of stitches is right or not. Therefore, an embroidery shop could inflate the number in order to get a higher price for the item.
The flat pricing model takes an average of all logos and uses that as a basis for their pricing formula.
The flat pricing model is has been used by embroidery shops for at least the last 15 years. Thread Logic has used this model since we started in 2002. We have found it much easier for our customers to understand and much more efficient way to price our products and services.
Embroidery suppliers are beginning to see the benefits of a flat pricing model as more and more of them are beginning to use it. Some are also using it in combination with a stitch count model which takes into account larger stitch count logos.
So next time you see a supplier employing a flat pricing model, now you know the advantages of working with such a supplier.
