The MOQ on a quotation is a starting position, not a fact about physics. It is usually the number at which one production run covers its own setup. Below that, the setup cost has to be spread across too few units, and the unit price climbs.
Why MOQ is not the number that matters
Setup cost — tooling amortisation, first-article approval, colour matching, packaging setup — is largely fixed. It is amortised across the run. So the real question is not "what is your MOQ", it is "what is the run length you quoted for, and what happens to the price if I take two runs instead of one".
| Batch strategy | Effect on unit price | Effect on your cash |
|---|---|---|
| One long run | Lowest per unit | Higher up-front cash, more stock risk |
| Two or three shorter runs | Higher per unit | Lower risk per run, faster feedback from the market |
| Start long, split later | Best of both once you know your sell-through | You learn the real demand before committing |
Sampling: the part everyone under-budgets
Budget for three sample rounds, not one. The first sample usually demonstrates that the supplier can make the thing at all. The second is where your actual specification changes land. The third is the pre-production sample you sign off. Suppliers who promise one round are either very good or not telling you what a sample costs.
Ask who pays for tooling in the sample. If the supplier does, that figure is usually deducted from your first production order. If you do, ask what happens to the mould if you never place an order.
Lead time: the number to protect
Lead time is the one variable that damages the relationship fastest when it slips, because you cannot explain it to your customer. Build your plan on the realistic figure your supplier gives you, and ask what the realistic figure is before you ask what the optimistic one is.
- Moulding and assembly: usually the shortest phase
- Colour and hardness approval: add a round if it is a new shade or a new Shore A
- Packaging artwork and print: the most commonly underestimated phase
- Test reports: only add time if you need a report that does not exist yet
