Images Magazine November 18

KB BUSINESS DEVELOPMENT www.images-magazine.com 46 images NOVEMBER 2018 Erich Campbell is an award-winning digitiser, embroidery columnist and educator, with 18 years’ experience both in production and the management of e-commerce properties. He is the partner relationship manager for DecoNetwork in the USA. www.erichcampbell.com multi-head solution. Having to tie up multiple heads for sampling or single- item production is far from ideal, which is why this combination is a solid option for staying versatile. Putting them in their place A consideration you don’t always hear discussed is the available area in your workspace. If you do choose to get a multi-head machine, you’ll have to be clear about both where it will go on your shop floor and how you will get it in place. For those working with limited space, networked single-heads can be arranged around corners or placed in more than one room so long as they can be connected to the network; with multi-head machines, workspace must allow for the straight configuration. Moreover, whereas many single-head machines can fit through a standard size doorway, most multi-heads will require a larger opening and may have to be hoisted through a purpose-made opening to be placed on an upper floor of a multi-level shop. Whether you are a home-based business or a commercial business with limited access, multi-head machines may require professional assistance to install. Sales secrets In my time in embroidery, I’ve made friends with many machine salespeople and I’ve found that most, particularly those with experience who can offer insights based on previous installs, are more than willing to give you information on which you can make judgments, even as they tout their products. That said, there are a couple of practices I think you should be aware of in the sales process… ■ Counting on production Although I see it less frequently in recent advertisements, an old tactic favoured by most machine manufacturers in the past was to break down an estimated monthly payment for a machine into a number of garments with a certain decoration one had to complete to cover the investment. The problem isn’t with the idea of finding a break-even point, more that the calculations almost always overlooked critical parts of the pricing process. Sure, if one takes a £200 payment and posits that some specific cap style sells for £20 decorated, we can all do the flawed maths that says if 10 of those caps go out this month, one would technically have the cash to make the payment. The problem is that, even with an idealised decorated cap, the costs a decorator will pay includes materials and blank items, and should include a reasonable wage for personal labour, even if that work is done by the owner. One can’t establish pricing without a real idea for the costs of running one’s equipment and what it takes to provide the labour, materials and power you need to operate over time. Without knowing your overheads and having solid pricing, you can’t know how many items you need to sell to pay for your monthly lease. ■ Breaking the bundle This is simple: sellers like to bundle software and accessories with machines – that doesn’t mean that you need the software or accessories to use your machines. Unless your machine requires it, most digitising and embroidery software from any source can be used for your machine. Select your software based on your actual needs and business plan, not because it was bundled by the distributor. Do your research, find out what the add-on products can do for you, and find out from your salesperson how much these bundled items would cost if you decide to add them to your shop some time later. Ask about breaking the bundle apart and assess the ‘deal’ before you sign on the dotted line: check with others in the industry who have bought from your distributor and see how well any packaged-in product is regarded by the community before you commit. Wrapping it up The core requirements of a considered approach to expansion are to always ask questions and to maintain a clear image in mind of how you intend to operate. Know your customer, including how and what they order. Know yourself and your employees and what you all need to work efficiently. Know the long-term costs of operation and understand how your workflow and cash flow interact. If you can adequately describe your needs, you are well on your way to having them served. Ask about breaking the bundle apart and assess the ‘deal’ before you sign on the dotted line The prosumer sector of the embroidery machine market is ‘surprisingly strong‘