MONTHLY MINIMUMS GUIDE

A minimum is a floor, not another fee.

When a minimum applies to pick-and-pack charges, calculate those charges first. Add only the shortfall below the minimum.

Use the scope written in the contract

Margin Desk applies the minimum only to pick-and-pack. Storage, receiving and fixed monthly fees are added afterward. If your provider applies a minimum to a different group of charges, this model will not match the contract without a separate adjustment.

The calculation

Minimum top-up = max(0, fulfillment minimum − calculated pick-and-pack). Monthly total = pick-and-pack + top-up + storage + receiving + fixed fees.

Why lower order volumes matter

Consider fictional pick-and-pack pricing of $2.25 per order and a $1,500 monthly minimum. At 500 orders, calculated charges are $1,125. The top-up is $375, making fulfillment $1,500 before other costs. Adding the entire $1,500 minimum to $1,125 would incorrectly double-count part of the bill.

At 1,000 orders, calculated pick-and-pack is $2,250 and the top-up is zero. With these simplified rates, the minimum stops binding at 667 whole orders: 667 × $2.25 = $1,500.75. Changing units per order also changes this threshold.

Questions to ask before signing

• Which charges count toward the minimum?
• Does the minimum vary by month, season or location?
• Are setup and special-project fees separate?
• Is storage based on an average, maximum or other measurement?
• What changes if the actual volume is below the forecast?

Answers must come from the provider's quote and contract. These questions do not imply that every provider uses the same terms.

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Illustrative USD figures, not vendor quotes or a savings promise. Limitations and privacy.