Understanding MOQs and Negotiating Minimums

MOQ—Minimum Order Quantity—is the number that kills more new brands than anything else. You're not ready for 500 units. Neither is your bank account. Here's how to navigate minimums when you're just starting out.

Why MOQs Exist

Factories set minimums because of setup costs. Every production run requires: machine setup, fabric ordering, worker training on your specific garment, and quality control systems. For small orders, these fixed costs eat into (or eliminate) their profit.

Understanding this helps you negotiate. It's not arbitrary—it's economics.

Typical MOQs by Factory Type

• Overseas (China, Bangladesh): 300-1,000+ units per style/color
• Mid-tier overseas: 200-500 units per style/color
• Domestic (US/EU): 50-200 units per style/color
• Small batch domestic: 24-50 units per style/color
• Custom cut-and-sew startups: 12-25 units (premium pricing)

How to Negotiate Lower MOQs

1. Pay More Per Unit

Factories often accept smaller orders at higher prices. If their MOQ is 500 units at $12/unit, ask what 100 units would cost. They might say $18/unit. That's a viable path for testing.

2. Use Stock Fabrics

Custom fabric orders have their own MOQs (often 500+ yards). Using fabric the factory already stocks eliminates this barrier and often lowers overall minimums.

3. Simplify Your Design

Complex construction = higher setup costs = higher MOQs. A basic tee has lower minimums than a jacket with 15 components.

4. Commit to Future Orders

"I need 100 units now, but I'm planning 500 units in 3 months." This signals you're a serious client worth accommodating.

5. Bundle Styles

Some factories will lower per-style MOQs if your total order volume is higher. "Can I do 50 tees + 50 hoodies?" might work when 100 tees alone won't.

The Math You Need to Do

Before committing to any MOQ, run the numbers:

• Total cost: MOQ × per-unit cost + shipping + duties
• Break-even: Total cost ÷ your retail price = units you must sell
• Cash tied up: How long until you sell through? Can you afford to wait?
• Storage: Where will you store 500 hoodies?

When to Accept Higher MOQs

Sometimes higher minimums make sense:

• You have pre-orders or committed buyers
• The per-unit savings are significant enough to offset risk
• It's a core product you'll sell for years
• You can afford the cash being tied up

The Bottom Line

MOQs aren't walls—they're starting points for negotiation. Ask questions. Get creative. And never over-order just because a factory pushed you. Better to pay more per unit and stay lean than to drown in inventory you can't sell.