Choosing whether to digitize designs in-house or outsource is a common dilemma faced by many embroidery shops. While outsourcing may seem like a time and effort-saving choice, doing the digitization process internally is often the wiser decision.

Price Range

The cost of outsourcing embroidery digitizing typically depends on the stitch count, design complexity, and details. A simple design may take 1-2 hours, a moderately complex design might take 5-10 hours, and complex designs could require more time. Here are some price references:

• Simple designs (e.g., text or simple graphics): Up to 5000 stitches approximately $10 - $30
• Moderately complex designs (e.g., medium complexity graphics, badges): 5000 to 10000 stitches approximately $30 - $80
• Complex designs (e.g., detailed patterns, many details, multiple colors): 10000 to 15000 stitches approximately $80 - $150
• Higher stitch counts and complex designs: Over 15000 stitches starting at approximately $200, potentially higher depending on design complexity.

Prices may vary based on the platform and specific design requirements. Freelancer platforms are more affordable, ranging from $10 to $100. In contrast, Creative Stitch and The Digital Embroidery offer more professional and high-quality services, usually between $50 and $300. Embroidery design companies generally have higher starting prices, while companies or individual designers in low-cost regions might offer lower prices.

Advantages

1. Cost Savings: Reduces initial investment and training costs. No need to purchase expensive software and hardware or provide costly and time-consuming software training for employees.
2. Professional Assurance: Professional digitizers have extensive experience and skills, providing high-quality embroidery designs. Outsourcing companies can usually complete design tasks quickly, shortening delivery times.
3. Convenience: Outsourcing can help manage a high volume of design requests during peak order periods.
4. Focus on Core Business: Outsourcing complex digitizing allows you to focus on embroidery order production and marketing.

Disadvantages

1. High Long-Term Costs: Accumulated outsourcing costs may be higher than in-house digitizing over time. Handling urgent orders or complex designs can significantly increase costs.
2. Data Security and Intellectual Property Risks: Customer information and design data may be at risk of leakage during outsourcing, and design copyrights and proprietary technology protection might be compromised.
3. Communication and Coordination Issues: Projects may be delayed due to communication issues or internal problems within the outsourcing company. If you choose low-cost international services, you also need to deal with language, time zone, and cultural differences.
4. Unstable Quality Control: Despite the experience and skills of digitizers, there are individual differences. You cannot control the quality of outsourced designs, requiring repeated search and adjustment. If designs do not meet expectations, multiple revisions may be needed, increasing time and costs.
5. Lack of Flexibility: Each design modification and adjustment requires re-communication with the outsourcing personnel, making the process cumbersome.
6. Dependency: Long-term reliance on outsourcing may lead to a loss of in-house digitizing capabilities and technical accumulation. Issues with the outsourcing provider (e.g., closure, decline in service quality) can directly impact business operations.

 In summary, outsourcing embroidery digitizing requires no initial investment, making it suitable for small, start-up embroidery shops. However, outsourcing costs are high for each design, especially for shops with large order volumes, making in-house digitizing more cost-effective in the long run.

In-House Digitizing

Compared to outsourcing, in-house digitizing requires a high-performance computer, digitizing software, design materials, and skilled designers (who could be your employees or yourself). If you have higher demands, such as designing from scratch, you might also need graphic design software like Adobe Illustrator.

Price Range

Digitizing software is essential for in-house digitizing. There are various types, with prices differing based on software features, brand, and use. Here are some common embroidery digitizing software options and their price ranges:

• High-end professional software (e.g., Wilcom EmbroideryStudio): $2,000 - $4,500
• Mid-range professional software (e.g., Hatch Embroidery): $399 - $1,299
• Entry-level and basic software (e.g., Embrilliance Essentials): Free - $179

You can choose suitable embroidery digitizing software based on specific needs, budget, and the embroidery equipment you use.

Disadvantages

1. High Initial Costs: Purchasing professional digitizing software and hardware equipment requires high initial investment, potentially several hundred to several thousand dollars. Employee training also requires time and financial investment.
2. Technical and Experience Requirements: The learning curve for mastering complex digitizing software and techniques takes time, and initial efficiency might be low. Inexperienced designers might not immediately reach professional levels, requiring time to accumulate experience.
3. Resource and Time Investment: Digitizing requires dedicated personnel and time, potentially affecting other business activities.

In conclusion, while in-house digitizing requires significant initial investment and complex technical training, it provides more stable quality control, data security, long-term cost savings, and enhances the reputation and competitiveness of your embroidery shop. It's a highly worthwhile endeavor.

Comparison: Outsourcing vs. In-House Digitizing

If the descriptions above are still not clear, let's compare with a series of numerical examples!

Cost Comparison:

• · Outsourcing Costs: Each design typically costs $20-$100 or more. Assuming 20 designs per month, outsourcing costs range from $400 to $2000.
• · In-House Digitizing: A one-time software purchase cost of $2000, with a 5-year lifespan, results in an annual cost of approximately $400, or about $33.33 per month, far less than outsourcing costs.

Case 1: Small Embroidery Shop

• · Order Volume: 20 designs per month
• · Outsourcing Cost: $50 per design, total monthly cost $1000
• · In-House Digitizing: One-time software cost $2000, 5-year depreciation, monthly cost approximately $33.33
  • o Annual Outsourcing Cost: $1000 * 12 = $12000
  • o Annual In-House Digitizing Cost: $33.33 * 12 = $400
  • o Annual Savings: $12000 - $400 = $11600

Case 2: Medium Embroidery Shop

• · Order Volume: 50 designs per month
• · Outsourcing Cost: $50 per design, total monthly cost $2500
• · In-House Digitizing: One-time software cost $3000, 5-year depreciation, monthly cost approximately $50
  • o Annual Outsourcing Cost: $2500 * 12 = $30000
  • o Annual In-House Digitizing Cost: $50 * 12 = $600
  • o Annual Savings: $30000 - $600 = $29400

Additional Profit Calculation:

• · Outsourcing Profit: Only the profit from embroidery orders, with a portion spent on outsourcing.
• · In-House Digitizing Profit: In-house digitizing attracts new customers and orders faster and increases income (by taking on others' digitizing needs). Assuming each design brings an additional $50 income, completing 20 extra designs per month would bring in an additional $1000. After deducting software costs, the net monthly profit is approximately $966.67.

In summary, in-house digitizing not only saves costs and increases profits in the long term but also enhances your embroidery shop's market competitiveness in multiple aspects, making it a smarter choice than outsourcing! If you're unsure which digitizing software to choose, check out our blog: Unleash Your Creativity: Embroidery Digitizing Software Recommendations.