What is MOQ in manufacturing?
MOQ (Minimum Order Quantity) is the smallest order a factory will accept. Low MOQs reduce your initial capital risk; high MOQs give lower unit prices but require more upfront investment. MOQs typically range from 100 to 10,000 units depending on the product.
Should I always choose the supplier with the lowest unit price?
Not necessarily. A lower unit price at a higher MOQ ties up more capital. A higher unit price at a lower MOQ might be better when testing a new product. Consider total investment, cash flow, and sell-through risk alongside unit economics.
How do I negotiate a lower MOQ with a Chinese supplier?
Common negotiation tactics: offer to pay a higher unit price for a lower MOQ, ask to share a mold or tooling cost, start with one color or variant, or position yourself as a long-term buyer. Many factories will negotiate MOQ for new customers with genuine orders.
What is the difference between MOQ and lead time?
MOQ is the minimum quantity per order. Lead time is how long production takes. Both affect your inventory planning — a low MOQ with a 90-day lead time still requires significant advance planning to avoid stockouts.