When it comes to ordering products from a factory, MOQ is an important factor to consider. MOQ stands for Minimum Order Quantity, which is the minimum number of products that a factory is willing to produce and sell to a customer.
MOQs can vary greatly depending on the product, the factory, and the market. Some factories may be willing to produce smaller quantities, while others may have a higher MOQ due to the need to justify the setup costs, such as mold or tooling expenses, and to make a profit.
Take plastic injection factory for example. Plastic products producing mainly includes below process:
- Injection machine debugging
This is important before production. If the machine cannot work normally, the production will be failed.
- Install mold
We have to install the mold on exactly right place to make sure products will be made in good way. This is a process need to be handled carefully and slowly until the mold is fixed in right place.N
- Clean the machine and mold
Before starting injection, we have to check about the materials and colors left on the machine and mold. It is necessary to check if there are any foreign objects or metal pieces left in the hopper, material barrel feeding port or heating cylinder, mold etc. This check can help us avoid damaging the machine and the mold. Additionally, it can ensure that the color of newly produced products is more accurate.
- Plastic material preparation and coloring
We have to confirm what type of plastic will be used and mix them with right color.
- Material drying
The drying time is according to the product will be produce and material used. This process often takes 2-4hours.
- Injection molding
This is the main process of injection. It decides the efficiency and products quality. After this process is completed, the production is coming to an end.
- Product packaging
This is the last process of plastic products production. Finish the packing we finish production.
It is precisely because production involves so many processes, each of which incurs costs, that factories have MOQ requirements for customers. For example, injection molding machines can produce hundreds or thousands of products in just one day, and they can produce up to 100,000 products per month. However, various adjustments are needed before the machine begins production, such as installing the mold and cleaning the pigments left in the machine from previous runs. Therefore, for factories, it is not cost-effective to run the machine for only one or two days at a time.
In general, setting an MOQ is a way for factories to ensure that they can produce a sufficient volume of products to justify the production costs and make a profit. MOQs can range from a few hundred units to tens of thousands or more, depending on the product and the factory.A higher MOQ may result in lower unit costs, but it also means a larger upfront investment and a greater risk of having unsold products taking up space and tying up capital.
To consider production costs and personnel costs, most factories have MOQ requirements for customized orders. However, if your order is not a large order, the product is relatively common, does not require customization, and the factory has inventory, then the MOQ will be relatively low. For startup customers who are just starting out, it is necessary to try small batch orders to test the market. So for customers, if you can find such factories, you can place small batch orders even mixed orders.
By working closely with the factory and understanding their MOQ requirements, you can make an informed decision that will ensure the success and profitability of your business. So, before placing your next order, make sure to consider the MOQ and all its implications.
We, HANGZHOU COSTAR TRADE CO., LTD, have a warehouse in Yongkang city, Zhejiang province. Most of our products are in stock. So just feel free to contact us if you want to start with us from small trial order. Also we welcome customized orders since we have over ten years experience.