Are you looking to find a reliable clothing manufacturer? When you contact with clothing factories, you’ll often encounter the term MOQ (Minimum Order Quantity). You might wonder why they often set these minimums. This requirement can be particularly challenging for new brands and startups. Here’s a simple explanation to help you understand why this is important.
Lower Production Costs
One of the main reasons factories require a MOQ is to control costs and enhance efficiency. When producing a large number of units, the cost per unit decreases due to economies of scale. This includes savings on raw materials, labor, and machinery setup. For example, cutting fabric for 50 pieces takes almost the same time as cutting for 500 pieces. However, the cost per unit is significantly lower with larger orders. This is because the fixed costs, such as machinery setup and labor, are spread over more units, reducing the overall cost per piece.
Production Efficiency
Creating a piece of clothing involves many steps, usually six or seven even for a simple style. It takes time and effort for workers to familiarize themselves with each new design, often making ten to twenty pieces before they become fast and efficient. If the order is only 30 or 50 pieces, workers just get good at it before they have to switch to a new design. This frequent changeover reduces efficiency. When workers have to constantly adapt to new designs, the time cost becomes too high.
Workers are typically paid based on the number of items they produce. The more they make, the more they earn. Therefore, they prefer simpler styles, as these are easier and faster to produce. They also favor larger quantities, as it allows them to increase their output once they are familiar with the style. The time taken to adapt to a new style becomes worthwhile with larger orders.
Different Factories, Different MOQs
The MOQ varies depending on the size and capacity of the factory. Larger factories generally require larger orders to start production, while smaller factories might accept small quantity like a few dozen pieces. Typically, most factories can handle orders starting at around 100 pieces. But remember, the smaller the order, the higher the unit price. Conversely, larger orders allow for negotiating lower prices.
For smaller brands or startups, it is often better to partner small factories that can take smaller order. Building a strong, long-term relationship with a manufacturer can also lead to more flexible MOQs, making it easier to manage your production needs as your business grows.
It’s crucial to be in touch with some potential factories to find out their MOQs and pick the one that works best for you.
The MOQ requirement exists to balance costs and efficiency, ensuring that production is viable for factories. The key is to engage with multiple factories, understand their MOQs, and choose the one that best fits your production needs.
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