For any brand looking to manufacture apparel, Minimum Order Quantities (MOQs) can be a major roadblock. At Rad Sourcing, we’ve worked with brands of all sizes, and we know firsthand how challenging MOQs can be—especially for startups and small businesses. But why do they exist? And more importantly, how can you negotiate lower ones without sacrificing quality or production efficiency? Let’s break it down.
What Is an MOQ & Why Do Manufacturers Require Them?
MOQs are the minimum number of units a manufacturer requires per production run, generally per SKU. These numbers vary depending on the factory, product complexity, and materials involved.
Why do manufacturers set MOQs?
- Economies of Scale – Factories work more efficiently with bulk production, reducing costs per unit.
- Material Sourcing – Many fabrics and trims have supplier MOQs, meaning manufacturers must buy materials in bulk.
- Production Setup Costs – Each production run involves machine setup, labor, and testing. A low order volume often doesn’t justify the cost.
- Profit Margins – A factory’s business model depends on producing at a certain scale to remain profitable.
One of our clients, a new sustainable activewear brand, approached us with a problem: their factory required a 1,000-unit MOQ per style, but they only needed 300 pieces for their launch. By adjusting fabric selection and working with a factory that catered to smaller brands, we helped them meet their goals while staying within budget.
How to Negotiate a Lower MOQ
While MOQs are often rigid, they aren’t always set in stone. Here are some strategies we’ve successfully used to lower MOQs for our clients:
1. Choose Readily Available Fabrics & Materials
Many manufacturers require high MOQs because they need to purchase fabric in bulk. Opting for in-stock or deadstock fabrics can help reduce this requirement.
💡 Tip: Ask your manufacturer if they have surplus fabrics from previous production runs. You might find a great option at a lower MOQ.
2. Work with Factories That Specialize in Small Runs
Some manufacturers cater specifically to emerging brands and offer lower MOQs. At Rad Sourcing, we’ve built relationships with factories that accommodate smaller orders without compromising on quality.
3. Start with Fewer Color Variations
If your design has multiple colors, consider reducing the number of SKUs (stock-keeping units). Factories often require higher MOQs per color because dyeing and printing processes involve setup costs.
4. Group Orders with Other Brands
Some manufacturers allow brands to group orders for similar products using the same materials. If you can align your production with another company, you may be able to reduce your MOQ requirement.
5. Offer to Pay a Slightly Higher Price Per Unit
Factories set MOQs to ensure profitability. Sometimes, offering a slightly higher price per unit can make up for their lost margins on a smaller order. While this isn’t ideal, it can be a good compromise if you need a low MOQ to start.
6. Negotiate a Test Run or Pre-Order Commitment
Some factories will agree to a lower MOQ if you commit to a larger order after testing the first run. If you can show demand (such as through pre-orders), manufacturers may be more flexible.
Final Thoughts: Making MOQs Work for Your Brand
Negotiating lower MOQs requires flexibility, strategy, and the right manufacturing partners. At Rad Sourcing, we specialize in helping brands navigate these challenges. Whether you need sustainable fabric alternatives, small-batch production, or supplier connections, we’ve got you covered.
💬 Have questions about MOQs? Need help negotiating with factories? Contact us at www.radsourcing.com to find the right solution for your brand.