Modern embroidery machines cannot work with standard JPG, PNG, or other image files. Ungeachtet, the graphic should be transformed into a format that the machine could turn into stitches. Quotes from embroidery shops would often tag the cost of this process as a setup cost or digitizing cost. It is a one-time cost and any repeat runs would be capable to utilize a similar digitized file. Digitizing is an intricate process that needs professional training and it is not something you could do with your basic graphic editing software. There are a lot of considerations when preparing an embroidery design, like determining how far apart the stitches must be, and the kinds of stitches that would be used.