How to Negotiate MOQs: 5 Questions to Ask
Minimum Order Quantities (MOQs) can make or break your cash flow as an indie brand. Before you sign with a factory, ask these 5 critical questions to protect your business.
1. "Can the MOQ be split across variants?"
Many factories set MOQ at 1,000 units TOTAL, but won't tell you that you can split it across 5 different shades or scents. This gives you variety without doubling your cash outlay.
Example:
Instead of 1,000 units of one lipstick shade, negotiate: 200 units x 5 shades = 1,000 total.
2. "What's the price break at 500 vs 1,000 vs 2,000 units?"
Factories often quote their "best price" at 1,000 units, but the jump from 500 to 1,000 might not be worth it. Get the full pricing tier table.
| Quantity | Price per Unit | Total Cost |
|---|---|---|
| 500 | £8.50 | £4,250 |
| 1,000 | £7.00 | £7,000 |
| 2,000 | £5.50 | £11,000 |
In this example, ordering 500 units twice gives you more flexibility than one order of 1,000.
3. "What's included in the MOQ - packaging and labeling?"
Some factories quote MOQ for "product only" and then hit you with a separate MOQ for custom packaging (often another 1,000 units). Clarify this upfront.
- Does MOQ include your custom logo/branding?
- Is packaging included in the unit price?
- Can you use your own packaging materials?
4. "What's the penalty for canceling part of the order?"
If your sales are slower than expected, you need to know your options. Some factories allow order reductions up to 30 days before production.
5. "Can I order a sample batch below MOQ?"
Always, always order samples before committing to full MOQ. Ask for a "sample run" of 20-50 units to test quality, packaging, and market response.
- Sample cost: Usually 2x-3x the bulk unit price
- Lead time: Often 2-3 weeks (faster than bulk)
- Use this for product photography and pre-launch marketing
MOQ Negotiation Script
"We're interested in your 1,000 unit MOQ, but we'd like to split it across 5 variants (200 each). Can you also provide pricing for 500 units total? We're also planning a sample run of 30 units first to test the market. What would be the total cost and timeline for: (a) 30 sample units, (b) 500 units split across variants, and (c) 1,000 units split across variants?"