Merch subscriptions and continuous programs
How we run recurring merch subscriptions for corporate clients: annual contracts, monthly drops, automatic replenishment, consolidated invoicing and operational benefits.
A subscription turns a recurring order into a predictable operation
Most corporate clients do not place one promotional order per year; they place four to twelve, in seasonal campaigns, regional activations, new hires, product launches or loyalty milestones. Treating each as an isolated order is inefficient: the client repeats the same brief, re-approves the quote, re-signs the sample, repays the deposit, re-coordinates the delivery. The subscription turns that flow into a predictable operation: annual contract, pre-approved catalog, delivery calendar, consolidated invoice and automatic replenishment without per-event requoting.
The standard subscription runs on a twelve-month framework agreement with a committed annual volume. The volume is split into four to twelve deliveries based on the client's cadence, and each delivery is invoiced at the unit price agreed in the contract, not at the spot list price. This removes the price variability that happens when the client places a new order every quarter and raw material has moved up. For clients with very predictable consumption, such as a restaurant chain or a retail network, we structure eighteen or twenty-four-month contracts with auto-renewal, securing better unit pricing in exchange for the longer commitment.
The pre-approved catalog is the heart of the subscription. At contract signing the client approves a set of five to twenty products or SKUs, with their artwork, their personalization techniques and their sizes or specs. Each new delivery comes off the catalog without re-approval, provided the product and the artwork stay the same. If the client wants to introduce a new SKU, we add it to the catalog in a contract amendment with a mini approval cycle that normally takes one week. The catalog lives in a digital file accessible to the client and to our production operators, avoiding the classic "we lost the file from the last shirt."
The delivery calendar is agreed at the start of the contract and published in a shared sheet the client can check in real time. For clients on monthly drops, each delivery is scheduled for the fifth day of the following month and delivered between the tenth and twentieth. For clients on quarterly cadence, each delivery is scheduled for the first day of the second month of the quarter. If the client needs to move a delivery one or two weeks for an internal activation, we manage it without penalty provided the notice is at least ten business days. Moving a delivery with less notice may impact the schedule if the production line is already calibrated.
Automatic replenishment runs when the client has inventory at our warehouses or at their own warehouse with defined minimum levels. When inventory drops below the minimum we generate a production order automatically, without the client having to issue a new purchase order. The order is invoiced against the framework agreement and delivered on the agreed cadence. This model works very well for clients with physical stores who need to keep a permanent stock of uniforms or branded gifts, and it cuts the client's administrative workload to zero.
Consolidated invoicing bundles every delivery of the month in a single summary CFDI with detailed lines by delivery, by SKU and by unit. The invoice is issued the first five business days of the following month and references each individual delivery with its order number and its Carta Porte 3.0. For clients with many SKUs and many deliveries, this consolidation simplifies account reconciliation and cuts the AP team's work. The consolidated invoice also serves as the base for the monthly activity report, which includes units delivered, inventory level, upcoming deliveries and consumption against the committed annual volume.
Frequently asked questions about subscriptions
What brand managers, buyers and operations teams ask when evaluating a merch subscription model.
What is the typical duration of a subscription contract?
Twelve months as standard. For clients with very predictable consumption we structure eighteen or twenty-four-month contracts with auto-renewal, securing better unit pricing in exchange for the longer commitment. Early cancellation is allowed with 60 days notice and a small administrative fee.
What happens if actual consumption exceeds the committed annual volume?
The additional units are invoiced at the contract unit price plus a five percent overage surcharge. If the client exceeds the volume by more than twenty percent during three consecutive months we renegotiate the contract to reflect the new real level. We do not penalize under-consumption: the unconsumed balance is delivered in the final months of the contract.
Can I introduce new SKUs mid-contract?
Yes, through a contract amendment that adds the new product to the pre-approved catalog. Each amendment takes about one week depending on whether a new prototype is needed or one from the catalog can be reused. The amendment does not interrupt deliveries from the original catalog.
How does automatic replenishment work?
The client defines minimum levels per SKU at their warehouse or at ours. When inventory drops below the minimum we generate a production order automatically, invoice against the framework agreement and deliver on the agreed cadence. No purchase order is required per event.
Can I change sizes or specs between deliveries?
Yes, provided the change stays within the range approved in the original catalog. For example, if the catalog approves sizes S to XXL, a delivery can request forty percent M, thirty percent L, twenty percent XL, ten percent S. Changes outside the approved range require a catalog amendment with a mini approval cycle.
How is monthly consumption invoiced?
A single consolidated invoice issued the first five business days of the following month, with detailed lines by delivery, by SKU and by unit. The invoice references each individual delivery with its order number and its Carta Porte 3.0. The summary CFDI simplifies the client's account reconciliation.
What if I want to end the subscription before the term?
Early cancellation requires 60 days notice and an administrative close-out fee. Pending deliveries already scheduled are delivered on the original calendar unless the client requests suspension with the corresponding charge. The unconsumed balance is invoiced against the minimum commitment of the contract, if any.
Related FAQs
Other topics tied to continuous programs and recurring operations.
Want to structure your merch as an annual subscription?
Send us your estimated annual consumption, the typical products and the delivery cadence you need. We come back with a contract model, a tentative calendar and the projected unit cost.