I’m looking for some outside opinions on a business situation because I genuinely don’t know if I’d be crossing a line.
I currently do contract sewing/embroidery work for another small business. She provides the materials, and I do the sewing, embroidery, and assembly for her. I’m paid $6 per finished item.
I did agree to the $6 price, so I completely understand that part is on me. However, the amount of work involved has gradually started increasing. There are now pieces she is having me cut myself that previously came to me already cut and ready to use. So while I agreed to the original rate, I’m now spending additional time prepping and cutting materials on top of the sewing and embroidery.
The items also have a very large stitch count, so they take a decent amount of machine time and put quite a bit of wear and tear on my embroidery machine.
The other issue is that the work is extremely inconsistent now. She hasn’t given me anything to do in about 4 weeks, and I genuinely need the extra income. There’s no agreement guaranteeing me a certain amount of work, and there’s no non-compete or anything like that.
Because of that, I’ve started considering making and selling my own version of this type of product.
One thing I want to be completely transparent about is that I would likely use the same digital sewing pattern/file that she uses. However, this is not a file that she created or owns. It is a commercially available digital file that anyone can purchase from the original seller, and I would purchase my own copy.
I also wouldn’t make the product exactly the way she does. After making so many of these, I’ve actually come up with a slightly different construction method that I think would work better. I would change some of the materials and the way the finished product is put together. I would also choose my own fabrics, colors, embroidery designs, branding, photos, packaging, etc.
The part that makes me hesitate is that we would technically have similar customers because it’s an occasion-based product. People are purchasing these for the same types of celebrations, so there would inevitably be some overlap in the customer base.
She sells through both Etsy and her own website and has a much larger social media following than I do. I would primarily be selling through Etsy, so our products could potentially show up in some of the same searches.
I also know her business does very well. From what I can tell, she has probably done somewhere around $90,000 in revenue this year alone from this type of product.
I want to be honest that, yes, I would essentially be entering the same market and selling a very similar product. I don’t want to pretend there wouldn’t be some level of competition between us, because there probably would be. We would be selling to the same general type of customer, and we would both have Etsy shops.
At the same time, she has built a much larger social media following and an established customer base that I simply don’t have. I would be starting from scratch with this product and would expect my sales to be a fraction of hers. I’m under no illusion that I would immediately have the reach or sales volume that she has.
For me, it’s more about looking at a skill I already have, equipment I already own, and a market that I now understand pretty well and wondering if it makes more sense to try selling the product myself rather than relying on $6-per-item work that may or may not be given to me.
And that’s where I’m conflicted. I realize that I learned a lot about making this particular product by doing work for her, and I don’t want to ignore that fact. At the same time, the digital file itself is commercially available for anyone to purchase, I would buy my own copy, and I would change the construction and materials based on things I’ve learned and ways I think the product could be improved.
I genuinely need the additional income, and right now I can go weeks without receiving any work from her. I already have the equipment and skills, so it feels like this could be a realistic way for me to bring in some extra money for my household. But I also don’t want to do something that would generally be considered unethical or taking advantage of the relationship I’ve had with her.
Would you consider this crossing an ethical line? Or is it reasonable for me to take the skills and experience I’ve gained and start my own version of this type of business?