When it comes to hat and apparel embroidery, all embroidery files need to be digitized to a format the embroidery machines support. Each embroidery type (flat/3D/partial) requires a separate digitized file that costs $10 per hat or $10 per shirt. You can later reuse the digitized files for the same type of embroidery orders (note that the digitized files are for internal use only, so they can't be used elsewhere).