Challenge Update #1

Last month about this time I challenged you to time yourself when you are working on any quilt, whether it was for a customer, for a charity, for family or for yourself. I am hoping that by doing this, you have discovered some interesting information.

To begin discovering some of this interesting information, let’s start with the obvious.

To determine how much $$ you made per hour when working on an individual quilt, take the total hours worked on the quilt (from when you timed yourself on this quilt) and divide it into the price you are charging.

If you go back to my post from last month, (to view that post Click Here)I documented two customer quilts I worked on. The first one, Starry Night Quilt, 74 x 83 inches, took me 4.83 hours to quilt. I charged my customer $250 for the quilting labor. So, $250 divided by 4.83 = $51.75 per hour that I “made” when I was working on this quilt.

The other quilt I documented was All My Scraps are Stars, 91 x 108 inches, with a LOT of detail quilting. This quilt took me 14.57 (rounded down to 14.5) hours to quilt. I charged my customer $500 for the quilting labor. So, $500 divided by 14.5 = $34.48 per hour that I “made” when I was working on this quilt.

These numbers do not include any business or operating expenses or any self employment taxes. A very general calculation would be – one third of your hourly “wage” goes to business and operating expenses, another third goes to self employment taxes and possibly recovering the cost of your quilting machine, the remaining third is your profit or what you actually make! Yes, all this can be individualized to your personal situation.

If you track what you make per hour, per quilt, over time, you should be able to come up with two important pieces of information. You should determine 1) the average time it takes you to quilt a quilt – you can break that down into quilt sizes like King size, Queen size, etc. – and 2) you should be able to determine an average hourly rate / wage you are making when you are working on these quilts depending on the pattern / technique you are quilting.

For example – I can quilt a Queen size quilt with medium density, “light” custom, free hand quilting in about 6 – 8 hours. If I charge, on average, $300 to quilt a Queen size quilt, then my hourly “wage” will be between $50 – $37.50 per hour. ($300 divided by 6 hours = $50 per hour, $300 divided by 8 hours = $37.50 per hour.)

Knowing this information, when I am consulting with my customer about quilting designs – and I have been tracking the time it takes to quilt the patterns / designs / techniques – I can recommend quilting designs that are appropriate for that quilt, that I can quilt in 6 hours, maybe less, but no more than 8 hours.

Also knowing this information, if the quilt says it needs a pattern / design / technique that will take MORE time, then you can start raising your price accordingly for that project. Estimate how many extra hours it will take you to quilt the particular pattern / design / technique, multiply that by your hourly “wage” and add that to your price.

Example – Let’s take the Queen size quilt from above and even though I may be doing somewhat simple quilting in the body of the quilt (let’s assume there are many busy prints in the body of the quilt) my customer decides she wants a feathered cable design in the border. I quilt the feathered cable design with templates, which is a more complex, time consuming technique. I have to determine HOW much extra time I will need to quilt this border design. Let’s assume that I estimate that it will take an extra 3 hours to quilt the border. For simplicity’s sake, let’s say I have an hourly wage of $30 per hour. Because I KNOW all this information, I will ADD an additional three hours to my estimated time of quilting and ADD an additional 3 hours of my hourly wage to this quilt ($30 x 3 = $90, rounded up to $100 to make things easy.) An estimated price then would be in the $400 range, for quilting labor only!! Batting, backing, thread and binding are all charged separately and not included in this price.

What if you don’t know how much extra time it will take you to quilt a different pattern / design / technique? Then I add percentages such as an extra 25%, 50%, 75% or more, depending on the complexity or difficulty of the quilting.

For our Queen size example from above with $300 for “basic” quilting, 25% extra would be $75, which I would probably round up to $100, which is about 30% of the basic price, 50% extra would be an additional $150, etc.

I can hear some of you right now saying, “Cindy, you are a crazy woman!! I could NEVER charge my customers that much money for my quilting!!” And I would answer you by saying “Why not???”

YOU are a highly trained, skilled, professional person. If machine quilting were so “simple” your customer could do it themselves – but they don’t. YOU have invested thousands and thousands of dollars into your quilting machine. YOU have invested hours and hours of your life learning how to use your quilting machine. YOU have invested more hours and hours and hours practicing, practicing, practicing your quilting skills. YOU can do things with your quilting machine that your customer CAN’T do and they are paying YOU to do this!

I travel around the country and talk to other quilters about their businesses. So many quilters are “locked” into the length x width x XX cents per square inch pricing. They will do all sorts of fancy, complex quilting – free hand, pantograph, computerized, templates, etc. – and NEVER charge anything more than length x width x XX cents per square inch, AND they will spend HOURS AND HOURS AND HOURS working on the quilt with NO idea of how many $$$ they are making (or loosing) per hour!

Let’s say you are thinking of putting a deck or porch on the back of your house. You want the deck to be 7-1/2 feet x 9 feet. You talk to a contractor about this and he says a basic deck / porch, no railings, nothing fancy will be $500. You think that having railings around the deck / porch might be a good idea, especially when the kids and /or grand kids come to visit. You also say that you would like to have a cover over the deck / porch, seats built into the railings and some planter boxes on the top of the railings. Is the contractor going to do all of the extras for the same $500 cost? I don’t think so!! He would – and he should – raise the price he is charging you according to what you want to have done to your deck / porch.

Why are YOU any different from the contractor in this example? If you haven’t figured it out, 7-1/2 x 9 feet is 90 x 108 inches, the same size as a Queen size, pre-cut batting! Think of yourself as a “quilting contractor” – the more quilting your customer wants, the more YOU SHOULD be charging for it, and they should and WILL pay for it!

Trust me, I have a LOT more to say about this, but for now, let’s finish with this – keep timing yourself on every quilt you work on. Begin to collate and group your information by quilt size, technique, pattern, etc., and see what information is starting to emerge about YOUR quilting.

As always, please leave a comment – I WILL be wearing my flame proof underwear or maybe I should make it a flame proof suit!

If you would like, send me a personal email at longarmu@aol.com

Advertisements

About Cindy Roth
Mother of 3, Grandmother of 10 and quilting forever!

3 Responses to Challenge Update #1

  1. Ilona O Strull says:

    This is a very interesting concept for me. I’ve been wondering as I quilt more and more for others how to accurately compensate myself. I haven’t started timing myself, but I will since reading your blog!

  2. Jeanell says:

    I appreciate your challenge. I have always thought about time since I started my business. I’ve gotten a little bit discouraged when I have timed a quilt though, I do have a timer built into my machines, I have two handiquilter models, because it only counts the actual stitching time and not the time it takes to load, advance rows, unload and meet with the customer. I usually feel like I need to multiply the stitching time by 3 to accuratly reflect my time.

  3. Deanna Sprinkel says:

    Cindy, think your article is GREAT!!! It makes so much sense!!! I’m so glad we came to Longarm University before we began our adventure of longarm quilting as a business!!!

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s

%d bloggers like this: