Understanding Minimum Order Quantities
What you need to know about MOQs before negotiating with factories — regional benchmarks, cost modelling, and tactics to land a workable deal.
Joe Lauder·Founder, Kōbō·Updated Apr 22, 2026Minimum Order Quantities (MOQs) can make or break a production run — especially for new and growing brands. This guide covers realistic regional benchmarks, what drives MOQs, an illustrative surcharge scale for sub-MOQ orders (so you can model costs), and the levers that help you land a workable deal. You'll also see where PLM/ERP slots in to align buys with demand and cash.
Regional MOQ Benchmarks
Baselines for mainstream categories. Complex construction, custom materials, or peak seasons can push higher.
| Region / Sourcing Hub | Typical MOQ (per color per style) | Notes |
|---|---|---|
| Portugal | ~150 | Premium basics, strong knits/wovens, quick turns. |
| China | 300-600+ | Broad capability & finishing; setup economies favor larger runs. |
| Turkey | 200-400 | Denim/knits; fast EU access. |
| India | 250-600 | Diverse textiles; embroidery/handwork. |
| Bangladesh | 500-1,000+ | Scale/value basics. |
| Vietnam | 300-600 | Outerwear/active expertise. |
| Eastern Europe (RO/BG, etc.) | 150-300 | EU logistics; small/mid runs. |
| USA/UK small workshops (CMT) | 50-150 | Low MOQs, higher unit costs; great for capsules/tests. |
What Sets MOQs (and How to Influence Them)
| Driver | Why It Raises MOQs | How to Lower It |
|---|---|---|
| Fabric & trims sourcing | Mill/trim vendor minimums, dye-lot sizes | Use stock fabrics; consolidate colors; standardize trims |
| Product complexity | More panels/finishes = longer line time | Start simple; iterate after demand validates |
| Factory size & line planning | High-volume lines need longer batches | Choose smaller/CMT shops; schedule off-peak; share 6-12 mo forecasts |
| Print & dye method | Screen setup per color; batch constraints | Use digital print or fewer screen colors; batch colors across styles |
| Supplier risk | New brands face conservative policies | Ship a clean tech pack sample; run a paid pilot (sample apparel) |
Sub-MOQ Orders: Surcharge Scale
Assume the factory's MOQ = 300 units per color per style. A sliding surcharge scale could look like:
| Ordered Quantity | Surcharge on Unit Price |
|---|---|
| 50-100 pcs | +30% |
| 101-200 pcs | +20% |
| 201-299 pcs | +10% |
| 300+ pcs (meets MOQ) | 0% (base price) |
Effective Unit Price = Base Unit Price x (1 + Surcharge%)
High vs Low MOQs
Pick by risk, cash, and speed.
Lower unit cost. Higher cash outlay. Broader material options (custom mills/dyes). Higher inventory risk. Easier factory priority.
Higher unit cost (per agreed scale). Lower cash outlay. Mostly stock materials. Lower inventory risk. Harder factory priority (unless you pay for slotting).
Negotiation Tactics
Fewer styles, more colors — to hit style-level MOQ.
Use stock fabrics — to avoid upstream mill minimums.
Pilot first — (paid sample apparel run) and negotiate surcharge credit-backs on reorder.
Share a 6-12 mo forecast — so the vendor sees repeatability.
Go CMT where needed — (you source; factory Cut/Make/Trim).
De-risk with a bullet-proof spec — and tech pack sample.
Clear Up the Supplier Language
People interchange "supplier," "vendor," "manufacturer," and "wholesaler." If you've ever looked up the difference between supplier and vendor (or variants), remember: the contract is what counts. Define MOQ rules, surcharge scale, QC, rework liability, and timelines.
If you sell B2B as a manufacturer and wholesaler, publish MOQs, surcharge scales, and price breaks in your line sheets.
Plan Like a Pro with PLM + ERP
PLM for Pre-Production
Centralize BOMs, graded sizes, versions, approvals, supplier docs, compliance, and change logs so factories always build from the latest spec. Start with a tech pack sample workflow.
ERP for Purchasing & Inventory
Turn approved specs into POs, track receipts, landed costs, and stock by location; align buys with demand to avoid over-ordering.
Tie It Together
Sync items, BOMs, suppliers, POs, and status — no double entry, fewer surprises.
MOQ Checklist
MOQs are negotiable. Factories set minimums based on efficiency and risk — both can be addressed. The key is understanding what drives their MOQ and offering solutions: forecasts, stock materials, simpler designs, or willingness to pay surcharges for flexibility.
Joe's the founder of Kōbō Labs. Before this, he founded Satta, a fashion brand he scaled to sell internationally at Mr Porter, SSENSE, and Beams Japan. A decade of running his own brand — design, suppliers, production, the lot — is what Kōbō is built on.
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