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.

A person with tattooed arm holding neatly folded clothes in neutral tones.
Photo: Timur Weber / Pexels

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An unpublished minimum gets argued about on every enquiry.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.

Cost the order, not the garment

The reason a minimum is necessary is that a large part of your cost per order does not care how many garments are on it. Quoting takes the same time. Proofing takes the same time. Invoicing, packing and answering questions take the same time.

Activity Time on a 6-piece order Time on a 120-piece order
Quote and specification 12 min 15 min
Proof and approval handling 15 min 18 min
Purchasing and receiving 10 min 20 min
Scheduling and setup 35 min 45 min
Production 8 min 150 min
QC, pack, dispatch 12 min 40 min
Invoice and payment 8 min 8 min
Total 100 min 296 min

Twenty times the garments for three times the time. That ratio is the entire argument for a floor, and it is also why a minimum order value beats a minimum quantity: what you are protecting is your hours, not your unit count.

Set the number from your own measurement

The honest way to set a minimum is to measure a handful of small orders end to end and price the hours. If small orders are clocked against the job like any other, the job costing report does it for you: sort by margin after labour and the orders below your floor announce themselves.

A usable rule: set your minimum order value so that the smallest order you accept still returns your target margin per shop hour after all of the activities above. For most shops that lands somewhere between £120 and £250, and it varies more by decoration method than by garment.

Three ways through the floor, all of them priced

A minimum works better with doors in it. Each of these keeps the customer and the margin:

  1. A small order handling fee. Simple, transparent, and it converts most objections in one sentence.
  2. A stock-design route. Pre-made designs on held blanks, produced in batches, so a single piece has no setup at all. This is what makes single-piece work viable rather than charitable.
  3. A grouped run. Hold small orders for a scheduled day per method. The customer waits a little, you set up once. On transfers this is the gang sheet argument, and it is the strongest case for a longer lead time on cheap work.

Enforce it where the order is taken

A minimum that lives in an email signature is a suggestion. It needs to be enforced at the two places orders actually arrive: on the quote, where a job under the floor flags before it is sent, and at online checkout, where a store or campaign refuses to close an order below the threshold.

Both of those are settings rather than discipline, and settings survive rush weeks. Publish the same number on your website, so a customer meets it before they invest time in a conversation they were always going to lose.

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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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.
Should I charge a small order fee instead of refusing the job?
Usually yes. A handling fee turns an unprofitable order into a profitable one and keeps a customer who may bring you a much larger job later. A refusal saves you the work and loses you the relationship, so keep refusals for work you genuinely cannot produce well.
How do I know what my admin cost per order really is?
Count the touches on a small order: quoting, proofing, chasing approval, ordering blanks, scheduling, producing, packing, invoicing, chasing payment. Then price the time at your loaded rate. Most shops land between £18 and £45 per order regardless of its size, which is exactly why a minimum is necessary.
Does a minimum lose me customers?
It loses you the orders you were losing money on and very few of the customers. Published clearly with a reason and a route through it, a minimum reads as professional. Discovered at the point of quoting, after the customer has spent time on it, it reads as a bait and switch.

Run the shop, not the chaos.

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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 →