Dashboard Policies Hub LTM Fee Policy

Less Than Minimum (LTM) Fee Policy

Essential guide for orders under 24 pieces

Effective: July 10, 2025
Review: Annually
Owner: Erik Mickelson
Version: 1.0
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Quick Reference

Fee Amount
$50.00 flat fee
Embroidery/DTG/DTF
Under 24 pieces
Screen Print
Under 48 pieces
Exceptions
Webstores (always waived)

Purpose

The Less Than Minimum (LTM) fee ensures we recover administrative costs associated with small orders while maintaining transparency and fairness. This $50 fee applies to orders under our minimum thresholds (24 pieces for most services, 48 for screen print) and covers:

  • CSR Coordination: Order entry, quoting, and customer communication
  • Purchasing: Sourcing blanks from suppliers like SanMar
  • Receiving: Unboxing, counting, and quality checks

Important: The LTM fee does NOT include production setup, design, or digitizing costs. These are billed separately if applicable.

Service-Specific Thresholds

Different decoration methods have different minimum order requirements based on production realities:

Service Type LTM Threshold Reason
Embroidery Under 24 pieces In-house production, digital setup
DTG (Direct-to-Garment) Under 24 pieces In-house digital printing, minimal setup
DTF (Direct-to-Film) Under 24 pieces In-house transfer production
Screen Print Under 48 pieces Subcontracted to Ed's shop - requires screen burning & press setup
Why Screen Print is Different:

Screen printing has a higher minimum because:

  • We subcontract to our trusted printer Ed
  • Each color requires burning a physical screen ($30+ per screen)
  • Press setup and color alignment is time-intensive
  • The setup investment needs 48+ pieces to be economical
  • Ed prefers 72+ pieces for optimal production efficiency

How the Fee Works

The $50 fee is prorated across all items in the order and added to the 24-piece base price:

Example Calculation:

10 embroidered hats

  • Base price (24-piece rate): $15.00 per hat
  • LTM fee per item: $50 ÷ 10 = $5.00
  • Final price per hat: $20.00
Another Example:

5 DTG shirts

  • Base price (24-piece rate): $12.00 per shirt
  • LTM fee per item: $50 ÷ 5 = $10.00
  • Final price per shirt: $22.00
Screen Print Example:

30 screen printed t-shirts (1-color)

  • Base price (48-piece rate): $8.50 per shirt
  • LTM fee per item: $50 ÷ 30 = $1.67
  • Final price per shirt: $10.17
  • Note: 48-piece minimum for screen print

Waiver Eligibility Matrix

Waivers are limited to specific scenarios to maintain consistency:

Scenario Eligible Services Waiver Amount Conditions Approval
Webstore Orders All services Full waiver (100%) Automated via Insoft/Shopworks Automatic
Fill-In After Large Order Embroidery, DTG only Full waiver (100%) • Within 30 days of $500+ order
• Limit 1-5 items
• NOT for Screen Print or DTF		 CSR Discretion
Loyal/Repeat Customer Embroidery, DTG only Partial ($25 instead of $50) • 3+ orders in past year
• NOT for Screen Print or DTF		 Erik Approval
DTF DTF No waiver Always apply full $50 fee (under 24) N/A
Screen Print Screen Print No waiver Always apply full $50 fee (under 48)
Subcontractor requirement		 N/A

Note: All waivers must be documented in Shopworks with the reason and any required approvals.

Step-by-Step Process

  1. Check Order Quantity: Is it under the service minimum? (24 for most, 48 for screen print)
  2. Identify Service Type: Embroidery, DTG, DTF, or Screen Print?
  3. Check for Webstore: If webstore order, waive automatically.
  4. Review Order History: Look for recent large orders or repeat customer status.
  5. Apply Fee or Waiver: Based on the eligibility matrix above.
  6. Document in Shopworks: Include waiver reason if applicable.
  7. Communicate to Customer: Use the scripts provided below.
  8. Finalize Quote: Ensure system reflects the correct pricing.

Customer Communication Scripts

When Applying the Fee (Embroidery/DTG/DTF):
"Since your order is under our 24-piece minimum, there's a $50 administrative fee that covers our order processing costs. This is divided across your items, adding $[X] per piece. Would you like to add more items to reach 24 pieces and avoid this fee?"
When Applying the Fee (Screen Print):
"Screen printing has a 48-piece minimum because we subcontract this service and the setup process requires burning screens for each color. Since your order is under 48 pieces, there's a $50 fee that's divided across your items, adding $[X] per piece. Would you like to increase to 48 pieces to avoid this fee? Our printer actually prefers 72+ pieces for best efficiency."
When Waiving for Fill-In:
"Great news! Since you had that large order with us recently, we'll waive the minimum fee for these additional items as a courtesy."
When Partially Waiving for Loyalty:
"As a valued repeat customer, we're reducing the minimum fee from $50 to $25 for your order. We appreciate your continued business!"
For DTF (No Waiver):
"For DTF orders under 24 pieces, we apply a $50 minimum fee to cover our administrative costs. This helps us maintain quality service even on smaller orders. The fee is divided across your items."

LTM Fee Calculator

Use this calculator to quickly determine how the LTM fee affects per-item pricing:

Frequently Asked Questions

Why do we have this fee?
The LTM fee covers the same administrative costs for a 5-piece order as a 24-piece order - CSR time, purchasing, receiving, and processing. Without this fee, we would lose money on small orders.
Can customers combine orders to avoid the fee?
Yes! We encourage customers to combine orders or add items to reach 24 pieces. This is the best way to avoid the fee and get better per-item pricing.
What if a customer orders exactly 23 pieces?
The fee still applies to orders of 23 pieces. We strongly recommend adding one more item to reach 24 and avoid the $50 fee entirely - it's almost always more cost-effective for the customer.
Does the fee apply to sample orders?
Yes, the LTM fee applies to all orders under 24 pieces, including samples. However, if the sample leads to a large order within 30 days, we may waive the fee retroactively.
What about add-on orders for existing customers?
If the customer had a $500+ order within the last 30 days and needs 1-5 additional items (embroidery or DTG only), we can waive the fee. This doesn't apply to screen print or DTF.
Why is screen print different from other services?
Screen print requires a 48-piece minimum (vs. 24 for others) because:
• We subcontract to Ed's print shop
• Each color needs a physical screen burned ($30+ per screen)
• Press setup and alignment takes significant time
• The investment only makes sense at higher quantities
• Ed strongly prefers 72+ pieces for optimal workflow
How do I request an exception?
For situations not covered by the standard waiver scenarios, contact Erik directly with the order details and reason for the exception request. Document the approval in Shopworks.

Staff Responsibilities

Role Responsibilities
CSRs
(Nika, Taylar, Taneisha, Adriyella, Jim, Ruth, Bradley, Steve)		 • Apply policy consistently to all qualifying orders
• Check eligibility for waivers using Shopworks history
• Document all waivers with reasons
• Communicate transparently with customers
• Suggest upsells to reach 24 pieces
Erik (Manager) • Approve edge-case waivers
• Review waiver logs monthly
• Coordinate with Ed on screen print minimums
• Update policy as needed
• Ensure profitability targets are met
• Train staff on policy updates
All Staff • Refer to this document for guidance
• Escalate uncertainties to Erik
• Maintain consistent application
• Track and report any issues

Related Resources

Tags

LTM Fee Less Than Minimum Waivers Pricing Policy Admin Fees Order Processing Embroidery DTG DTF Screen Print Customer Service Shopworks Webstores