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If you want color blending this is an additional charge on top of the stitch count. If you find someone that is charging less, then you had better try them out on a design that is for a customer that would not complain if it is not the kind of quality that you envision. If the price is low, I would truly beware.
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How much does it cost to digitize a file for embroidery? There is a huge range when it comes to pricing for digitizing and different approaches to the way that they price their digitizing. Some digitizers charge by the stitch count only. The range for most good digitizers is from $15 to $40 per thousand stitches. There are even good digitizers that will give you a choice and will create designs based on a scale. If you want a lot of detail it will cost you more than if you want less detail.