MOQs – why why why?

For many new start-ups you will hear this terminology constantly from every aspect of your project whether it be with the contract manufacturer or the packaging supplier.  This is quite simply the backbone of any world class manufacturer.   Whether your order consists of 200 or 2000 units, the set-up time is exactly the same as is the time it takes to clean the line; to name a few of the required steps.   These costs need to be amortised over the number of units, so yes you need to be aware that the smaller the quantity the more expensive it is to produce.  For an initial start-up launch, you will need to weigh up whether its viable to purchase at a lower price larger manufacturing quantities which will require holding stock for a longer time on your shelves or to produce smaller quantities at more expense but in doing so allows you to establish your brand without the risk of the product ageing beyond the expiry date.