Minimum Order Value: Set Prices That Protect Your Shop

Every decorated apparel shop has faced it: a customer walks in wanting a single embroidered polo, or orders two screen-printed t-shirts with rush delivery. Your equipment is idle. Your team could knock it out in an hour. But the math doesn't work.

Without a clear minimum order value (MOV) strategy, small orders erode profit margins, distract your production schedule, and train customers to expect underpriced work. The solution isn't to turn jobs away—it's to price them honestly.

Let's build a defensible MOV framework that keeps your shop profitable while remaining competitive.

What Is Minimum Order Value (and Why It Matters)

Minimum order value is the lowest dollar amount you'll accept for a job, regardless of quantity. It's different from minimum quantity per design (e.g., 6 shirts minimum); MOV covers the total invoice.

Why set one?

• Setup and overhead costs are fixed. Whether you're running 1 screen-printed shirt or 50, you're burning screen costs, setup time, color changes, and labor.
• Small jobs compound inefficiency. Your team context-switches between jobs, reducing throughput on larger, more profitable orders.
• Pricing discipline attracts better customers. Clients who respect your MOV tend to be serious, repeat customers—not one-off bargain hunters.
• It protects your labor floor. An operator earns $18–$25/hour. If a 2-shirt job takes 45 minutes to set up and run, you need the invoice to justify that time.

Calculate Your True MOV

Start with the data you already have (or should track in a system like Kontraktr). Your MOV should cover:

1. Design & Setup Costs

• Design modification or digitizing: $25–$75
• Screen burning (screen printing): $15–$30 per color
• DTF film or vinyl cutting setup: $10–$20
• Embroidery hoop prep: $5–$15
• Administrative time (quoting, proofing): $15–$30

Small-job example: A 2-color screen print setup = $30 (screens) + $25 (design/admin) = $55 in non-fabric costs before a single shirt runs.

2. Production Labor (Minimum Time)

Even the fastest jobs have a production floor.

• Single-color screen print: 10–15 minutes minimum
• Multi-color screen print: 15–30 minutes minimum
• Embroidery: 20–40 minutes (depending on stitch count)
• DTF/DTG: 5–10 minutes per piece

At $20/hour, 15 minutes of labor = $5 in wage cost. Add overhead (utilities, equipment depreciation, rent) at 1.5–2x labor cost, and that 15-minute job really costs $12–$15 in labor + overhead alone.

3. Material Cost + Margin

Use your cost of goods sold (COGS) + your target margin.

Example for a screen-printed t-shirt:

• Blank shirt: $3.50
• Ink & supplies: $0.75
• Subtotal: $4.25
• Target margin: 50% = $2.13
• Material contribution per shirt: $6.38

For a 2-shirt order: $6.38 × 2 = $12.76

4. Add Everything Together

Cost Category	Amount
Setup (screens, design, admin)	$55
Labor + overhead (15 min @ $20/hr + 1.5× markup)	$15
Material (2 shirts @ $6.38)	$12.76
Total cost to you	$82.76
Target profit (20% on total)	$16.55
Minimum invoice needed	~$100

That 2-shirt order needs to hit $100+ to be worth your time. Price it lower, and you're subsidizing the customer.

Common MOV Strategies

Flat MOV Across All Services

Set one minimum (e.g., $75 or $100) regardless of service. Simple, easy to communicate.

Pros: Customers understand it instantly. Easy to enforce.
Cons: May be too high for simple embroidery, too low for complex screen printing.

Best for: Shops with a mix of service types and moderate volume.

Service-Specific MOV

Different minimums for screen printing, embroidery, DTF, vinyl, etc.

Examples:

• Screen printing: $85 minimum
• Embroidery: $60 minimum
• DTF/DTG: $50 minimum
• Vinyl/signage: $75 minimum

Pros: Reflects actual cost structures. More competitive on lower-setup services.
Cons: Customers may find it confusing. Requires clear communication.

Best for: Shops with very different production processes or equipment.

Tiered Pricing with Quantity Breaks

Small orders = higher per-unit price. Larger orders unlock volume discounts.

Example:

• 1–5 shirts: $15/shirt + $60 setup fee = $135 total
• 6–20 shirts: $12/shirt = $72–$240 total
• 21–50 shirts: $10/shirt = $210–$500 total

Pros: Incentivizes larger orders. Feels fair to customers.
Cons: Math gets complex. Requires clear quote communication.

Best for: Shops running a mix of small custom and bulk orders.

How to Communicate Your MOV

Don't hide it. Lead with it.

1. Display on your website in your FAQ or pricing page: "We maintain a minimum order value of $75 to ensure quality and timely delivery."
2. Mention in early conversations. When a prospect calls, ask about order size first. If it's below your MOV, offer solutions immediately (add more items, upgrade design, expand the order).
3. Show value, not restriction. Frame it as protection: "Our $75 minimum ensures we dedicate proper setup time and quality control to your job."
4. Offer alternatives for small orders:
   • Suggest larger quantities (buy 5 instead of 2).
   • Recommend a lower-setup service (DTF instead of screen printing for 1-off).
   • Offer a future bulk order discount if they place a second order within 30 days.

Handle the Exceptions (Thoughtfully)

Sometimes it makes sense to break your MOV:

• Repeat customers: A client who orders every month earned flexibility. Lower the minimum for their next job.
• Upsell opportunity: A 2-shirt order today might lead to 100-shirt reorders tomorrow. Absorb the setup cost as relationship investment.
• Slow production periods: If your press is idle Tuesday afternoon, a small job is better than empty time.
• Bundle across services: A 2-shirt embroidery order + vinyl sign might hit your combined MOV, justifying the setup.

Use a job management system like Kontraktr to flag when you're breaking policy. Track whether those exceptions became repeat customers. If they didn't, stop making them.

The Real Benefit: Profit Protection

A thoughtfully set MOV doesn't just protect individual jobs—it changes how you operate:

• Better scheduling: You spend less time on low-value setup, more on high-throughput runs.
• Happier teams: Operators aren't context-switching between tiny jobs. They run longer, more efficient production.
• Better customer mix: Bargain hunters move to competitors. Quality-focused clients stay.
• Visible profitability: When you stop accepting $25 jobs that cost $40, your margins visibly improve.

Your Action Item

This week, calculate your true MOV using the template above:

1. Pull three recent small orders (under 5 pieces or rush jobs). Calculate actual setup, labor, and material costs.
2. Add 20% profit margin to get the true minimum.
3. Set your MOV based on the highest number you find, rounded up to a clean number ($75, $85, $100).
4. Publish it on your website and train your team to quote it confidently.

Your shop can remain competitive and profitable. An honest minimum order value makes that possible.