Contract Screen Printing and Embroidery: How It Works
What contract screen printing and embroidery are, how pricing and minimums usually work, and what to ask before you outsource.
How contract decorating works, how contract pricing and minimums are usually structured, and what to ask before you outsource screen printing or embroidery.
Contract screen printing (and contract embroidery) means a production shop decorates blank garments for another business at wholesale rates, usually from that business's purchase order, artwork and blanks, so the reseller can sell under its own brand without owning the equipment.
Definition: contract decorating
Contract decorating is wholesale screen printing, embroidery or transfer work done for resellers such as promotional product companies, apparel brands, designers and other print shops. The decorator produces the job; the reseller owns the customer relationship.
Part of the DAX Learning Hub: practical, exhibitor neutral guides for apparel decorating. Building a pricing model first? See Pricing Custom Apparel. For bulk branded work, see corporate and team orders.
Also see Licensing and Trademark Basics for Printed Apparel (Not Legal Advice).
What Is Contract Screen Printing and Embroidery?
A contract decorator acts as outside production capacity. Typical customers are promotional product distributors, brands, agencies, designers and decorators that need overflow help or a method they do not run in house. Many contract shops do not sell direct to the public so they do not compete with their customers.
A typical job flows like this:
- The reseller sends a purchase order and print ready art.
- The decorator confirms the method and returns a mockup or sew out sample for approval.
- Blanks arrive, either shipped in by the reseller or ordered by the decorator.
- The job runs through production and quality checks.
- Finished goods are packed and shipped, often blind shipped straight to the reseller's customer.
Some contract shops ask for a business license and resale permit before offering contract terms.
How Contract Pricing Is Usually Structured
Price lists differ, but most contract pricing is built from the same parts:
- Screen printing: a per piece price that falls as quantity rises and climbs with each added ink color, plus a setup or screen charge per color.
- Embroidery: a per piece price based on stitch count and location, plus a one time digitizing charge for new logos.
- Art and changes: fees to prepare art that is not print ready, and sometimes for color changes or ink matching.
- Rush service: a surcharge for shorter turnaround.
- Extras: charges for added locations, specialty garments, finishing such as tagging or bagging, and shipping.
Minimums are usually set per design and vary widely by shop and method, from around a dozen pieces at some shops to much larger runs at shops built for high volume. Digital methods such as DTF often run lower minimums than screen printing. For how setup and minimums shape what you charge, see Setup, Rush and Minimum Fees.
Contract Decorating vs Buying Your Own Equipment
| Factor | Contract decorating | In house equipment |
|---|---|---|
| Upfront cost | No equipment purchase | Equipment, space, utilities and training |
| Control | Depends on the decorator's schedule and standards | Full control of schedule and quality |
| Turnaround | Commonly one to three weeks from blank arrival, plus shipping | Set by your own capacity |
| Range of methods | Access to methods you do not own | Limited to what you buy |
| Margin | Wholesale cost per piece | Your own labor and overhead per piece |
If you are still planning the business, see Start a Custom Apparel Business.
Questions to Ask a Contract Decorator
- What are your minimums per design, and do different garments or caps count separately?
- How is pricing built: per piece tiers, per color or stitch count, setup, digitizing and art fees?
- What turnaround do you quote, and does it start when blanks, art and the PO all arrive?
- Do you supply blanks, or do we ship them in? What blank condition do you require?
- How do you handle misprints and spoilage, and how many extra pieces should we send?
- Do you send a mockup or sew out sample before production?
- Can you blind ship to our customers, and whose carrier account is used?
- Do you sell direct to the public?
How to Prepare Blanks and Art for a Contract Order
- Send new, clean, print quality blanks with tags and stickers removed if the decorator requires it, and include a small overage if they ask for one. Blank Inventory and Sizing covers size runs and overs.
- Supply art in the format each method needs: vector files or high resolution raster for printing, and a digitized stitch file or approved logo for embroidery.
- List print size, location, ink or thread colors and garment counts by size on the PO.
- Include a mockup showing placement for every location.
Frequently Asked Questions About Contract Decorating (FAQ)
What does contract screen printing mean?
It means a screen printing shop prints garments for another business at wholesale rates. The reseller sells the finished product under its own name, and the printer handles production.
Do contract printers supply the shirts?
Often the reseller supplies the blanks, but some contract decorators will order garments for you. Ask which way they work and what blank condition they require.
What are typical minimums for contract printing?
Minimums are usually set per design and vary widely, from around a dozen pieces at some shops to much larger runs at high volume shops. Screen printing tends to have higher minimums than digital methods because each color needs its own screen setup.
Is contract decorating cheaper than doing it in house?
It depends on your volume. Contract work avoids equipment, space and training costs, which suits low or uneven volume. At steady high volume, in house production can cost less per piece, but only after the equipment, labor and overhead are covered.
Pricing structures, minimums and turnaround vary by decorator. Confirm every term in writing with your supplier.
Clear POs and print ready art keep contract jobs on time. Browse more guides in the DAX Learning Hub, and check cities and dates on the DAX show schedule to meet contract decorators and equipment suppliers in person.