July '18

For the Business of Apparel Decorating

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2 0 1 8 J U LY P R I N T W E A R || 25 THE MARK-UP Shops may attempt to reduce the impact of potential customer loss by charging a higher rate for digitizing. Even when outsourcing, decorators may mark-up the digitized file to make file production a profit center. Though charges can be justified via costs incurred while communicating with the digitizer and customer, preparing art, and acquiring approvals, profit requires covering that labor as well as an increased margin. THE HANDOVER In contrast to shops that look to profit from digitizing, those whose customers are especially resistant to setup fees may choose to pass digitizing costs directly to the customer, particularly if they outsource. By providing the file 'at cost,' even going so far as to include invoices from the digitizer as documentation, they position themselves as hav- ing provided a deal to the customer, as well as transparency about fees. THE COMPLETE PACKAGE Shops that release files may limit the assets they turn over by releasing only the machine-formatted file, not the editable 'work' file used by digitizing software, meaning any alteration of the file will most likely require that it be re-digitized. Shops may withhold samples, color selections, digital previews, or printed specifications, only releasing the machine file unless, like the 'Transfer Fee' method of retention, the customer pays for a prepared file product. In doing this, the shop releases the file while keeping color selections and any other informa- tion about the execution of the embroidery within their walls and passes that work onto the next shop. ~~~ September 13 & 15, 2018 ~~~ Indiana Convention Center & Lucas Oil Stadium 800-866-7396 • Register for individual classes, or for the full conference and save up to $50! This conference is co-located with THE NBM SHOW! Registration for any of the classes also gets you registered for the trade show. ~~~ Indianapolis ~~~

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