Pricing

Setting a minimum order quantity that protects margin

Set your minimum from setup cost, not from tradition. Work out the order value at which fixed setup falls below about a quarter of total cost, and set your floor there. For most shops a minimum order value works better than a minimum quantity, because it lets a small order of expensive garments through while still blocking the unprofitable ones.

An MOQ is a margin tool, not a gate. Why a minimum order value usually beats a minimum quantity, and how to pick the number.

Minimums have a bad reputation because they are usually inherited rather than calculated. "We don't go below 24" is a habit. The question worth answering is: below what point does this job cost more to handle than it earns?

The admin floor nobody costs

Every order, however small, consumes: a quote, an artwork check, a proof, an approval chase, an order entry, a production slot, a pack, a dispatch, an invoice, and sometimes a payment chase. In most shops that is 30 to 60 minutes of non-production time. At a £35 loaded hourly rate, that is £17 to £35 of cost before anyone touches a garment.

That is your true floor, and it applies to every method including the ones with no setup.

Calculating your minimum

  1. Take your admin floor per order, measured not guessed.
  2. Add the setup cost for the method in question.
  3. Divide by the share of revenue you are willing to have those two consume, say 25 percent.

For screen print with a £54 three-screen setup and a £25 admin floor: (54 + 25) / 0.25 = a £316 minimum order value. For DTG with no setup: 25 / 0.25 = £100.

Those numbers will feel high the first time you calculate them. That reaction is the useful part.

Why value beats quantity

Order Quantity Value 24-piece MOQ £250 MOV
Cheap tees, one colour 24 £180 Accepted Declined
Embroidered jackets 8 £460 Declined Accepted
Full-colour hoodies 15 £520 Declined Accepted

A quantity minimum accepts the worst job on this list and rejects the two best. Value minimums fail far less often.

Softening the floor

Publish it

An unpublished minimum gets argued about on every enquiry. A published one filters before it reaches you and makes the exceptions feel like favours. Put it on your quote template, your stores and your enquiry form.

Printer's Friend can hold a per-method minimum on your price matrix so a quote that falls under it flags before it goes out, and your affiliate stores can enforce their own floor at checkout. See also pricing so you win the job.

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Get the pricing pack

One formula per decoration method, a worked example, and the seven numbers to watch. Free PDF.

  • One formula per decoration method
  • 100 black tees, priced line by line
  • The seven numbers to watch weekly

Questions

Is a minimum quantity or a minimum order value better?
Minimum order value, in most cases. Twelve cheap tees and three embroidered jackets can be the same revenue, but a quantity minimum blocks one and allows the other for no good reason.
Should the minimum differ by decoration method?
Yes. Screen print carries heavy setup so it needs a real floor. DTG and DTF have almost none, so their floor only needs to cover handling and admin.
How do I turn down a small job without losing the customer?
Offer the alternative rather than refusing. Quote the same design in DTG or transfers at low quantity, or state the minimum and the price at which you would take it. Most customers accept a number and resent a no.

Run the shop, not the chaos.

Printer's Friend turns every job in this article into a tracked order: quote, artwork approval, production stage, invoice.

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Read next

How to price DTG printing per garment → How to price screen printing (with a worked example) → How to price embroidery by stitch count →