What is MOQ?
MOQ stands for minimum order quantity. It is the smallest amount of product you have to order from a manufacturer for them to take on your production.
The quantity differs by manufacturer but it’s often too high to make sense for a smaller brand. If the MOQ is for more product than you need - you will be stuck with excess stock which maybe difficult to sell, ties up your cash and requires wasteful spending on the raw materials to make it.
Factories require MOQs because they have to cover the costs of setting up their equipment with your specific threads, trims and other materials and training their employees on your job. Doing this for small production runs is time consuming and less profitable.
Here are some things to keep in mind:
When reviewing a factory, first find out the MOQs and try not to waste time with factories that are not an option for you. There is an increasing number of manufacturers who are willing to work with small brands and to negotiate their MOQs.
If you find a factory you love but don’t meet the minimums, you can offer to pay more. For example if the factory requires 500 piece minimum at a price of $20 each you can offer $22 each for just 250 pieces. Never cut more than a 3% overage on your orders. If you can’t sell enough to meet the production minimum, it’s best not to produce the piece at all.
Make sure you understand the definition of ‘minimum’. Some factories may have a minimum of 200 of each style, but that may include all sizes and several color options.
Remind a factory owner that working with your small order now will lead to bigger orders in the future. You want to find a partner who will support you and help you grow over time.
When designing your collection, cutting the same silhouettes in different colors and fabrics and adding different trims saves on patterns and can help meet minimum’s. Even though the products look different, the cutting and sewing steps are the same for the factory so you can get a lower price and meet your MOQs.
To find suppliers and production partners who offer low MOQs, visit Resources