Dimension Sports offers industry leading MOQs for custom clothing – from 50pcs per design

Dimension Sports offers industry leading MOQs for custom clothing – from 50pcs per design. We’re committed to providing exceptional garments which meet the high standards of our customers, regardless of quantity

What Does MOQ Mean?
MOQ stands for “Minimum Order Quantity”. It’s used to signal the minimum order someone can place with a manufacturer. It also tells you the minimum amount of product the manufacturer is willing to produce

 

 

 

 

Why MOQs are Important?
MOQ’s are important for two people:

Buyer
Manufacturer
For the buyer a MOQ means there’s a lower barrier to entry and they don’t need to spend much money on inventory.

It also means that the buyer can test products and reduce the risk of ordering a large amount of defective products if the supplier turns out to be untrustworthy.

You can move slower and make sure the supplier is great to work with before committing to a large order.

For the manufacturer a MOQ is important because they can use it to filter out low quality buyers and people that aren’t serious about starting or growing their businesses.

Suppliers also use their minimum order quantity to make sure they aren’t losing money on the products they make. If a supplier needs to make 5 products to break even and they set a MOQ at 10 then every order guarantees a profit.

It gives them more room to negotiate with people and take a loss on an order if they want to.

What is a Low MOQ?
A low “Minimum Order Quantity” is anything between 1 and 50 units. But it depends on your business and how much you’re selling. “Test Orders” can range from 50 – 200 if you have significant demand and want to see how a manufacturer does with a larger order.

Once a manufacturer is asking for a minimum order over 200 units then you know you’re dealing with a supplier that only wants to deal in large quantities. It’s possible to negotiate with the supplier but they might not budge.

Why Do Suppliers Use MOQs
The main reason suppliers use MOQs is because they want to control the costs to create a product.

Suppliers want to be able to create the product, cover the complete cost of making it and also have profit left over.

To do that they calculate every expense and come up with a number that can work for them and their customers.

There are suppliers with a minimum order quantity of 1 unit. And that doesn’t mean the supplier is making money off their single unit sold but they’re willing to take on some loss to get a customer.

If you find a supplier willing to have an MOQ of 1 then most likely they are new and are trying to generate business

Advantages & Disadvantages of MOQs
You’ll notice on Alibaba there is a range in the price of a product. For example, if you look at a product listing it will say $4-$8, that means the more you order the more you can save. The smallest order can cost you $8 per unit and the largest order can cost you $4 per unit.

The advantages of having a MOQ is that you save money per unit the more you order. And it gives you room to negotiate with the supplier to get a better deal for your business since you know the range they work with. On the other hand, the disadvantage of having a large MOQ is that you might be required to place a large order upfront to save money on the product you want to sell. There’s a possibility that you won’t be able to sell everything you bought and lose money because you mismanaged demand. A smaller MOQ can reduce the possibility of having too much inventory on hand.

How to Meet MOQs
Depending on what stage of your business you’re currently in, finding a manufacturer with a MOQ you’re comfortable with is important. Here’s how to filter suppliers based on their MOQ:

If you can’t meet a suppliers MOQ and you tried negotiating with them then the next step is to find another supplier. Every product has multiple suppliers that are willing to meet your requirements. And the truth is that it’s possible to use one factory for your small orders then when you grow you change suppliers. What’s important is that you keep your options open and don’t buy more units than you’re comfortable selling. We recommend staying on Alibaba when looking for more suppliers but there are a few places you can use to find additional suppliers