What Is MOQ? Understanding Minimum Orders, Talking to Factories, and Using the Right Tools

What Is MOQ? Understanding Minimum Orders, Talking to Factories, and Using the Right Tools

“We’d need at least 500 units to proceed.”

If you’ve ever tried reaching out to a manufacturer, chances are you’ve heard a variation of that sentence. But what exactly is an MOQ—and more importantly, how do you work with it instead of being paralyzed by it?

What Is MOQ and Why Does It Exist?

MOQ stands for Minimum Order Quantity, a term used in manufacturing to indicate the fewest units a factory is willing to produce in one order. This isn’t about being difficult or gatekeeping. It’s about logistics, cost structures, and efficiency. Think of it like turning on an oven: it costs the same amount of energy to preheat whether you bake one cookie or fifty. Factories operate in a similar logic.

There are two major types:

  • Unit-based MOQ: e.g., 300 pieces of one design.
  • Value-based MOQ: e.g., $3,000 minimum spend per style or order.

These MOQs exist because:

  • Machines require setup time and cost.
  • Bulk raw materials are cheaper.
  • Labor and production scheduling favor volume.

How MOQ Became a Standardized Paradigm

Over time, MOQs have evolved from casual benchmarks into structured, codified thresholds. With globalization and digitalization, more factories began adopting ERP systems (Enterprise Resource Planning) that require batch logic and minimum capacity forecasts. What used to be negotiable became embedded into spreadsheets, production calendars, and supplier contracts.

And while this seems rigid, it also opened up a door: data.

If we understand what drives MOQ from the factory side—cost per unit, fabric wastage, labor setup—we can reverse-engineer ways to meet it smarter, or negotiate it down with reason, not guesswork.

How to Talk to Factories About MOQ

Here’s where most early-stage founders get stuck: the assumption that MOQs are non-negotiable. But they’re often just starting points.

Here’s how to approach it:

  • Be specific. Don’t just say, “Can you lower the MOQ?” Say, “If I switch from digital print to screen print, does that affect your MOQ?”
  • Understand cost drivers. Ask if it’s fabric MOQ, machine setup time, or labor that drives the number.
  • Propose alternatives. Combine colorways, pre-book raw materials, or offer higher pricing per unit in exchange for lower volume.

Use the MOQ Estimator to Talk Like a Pro

This is where our MOQ Estimator comes in.

Let’s walk through how to use it:

Step 1: Estimate Your Unit Cost

Use your BOM (bill of materials) and production quotes. This gives a base to understand how much you're spending per piece.

Step 2: Enter the Minimum Spend Required by the Factory

This could be:

  • Per colorway
  • Per style
  • Or total per order

You can find this on your quote or ask directly.

Step 3: Get Your MOQ

The calculator does the math and instantly shows you the minimum order quantity needed to meet the factory's threshold. No more guessing.

This result isn’t just a number—it’s a tool for negotiation. You can screenshot it, send it to your supplier, and say:

“Based on your $1,500 MOQ and our $6.50 unit cost, it looks like your MOQ is around 230 pcs. Can we discuss options if I want to produce 150 pcs at a higher price point?”

This shifts the conversation from vague to value-based.

Why Early-Stage Brands Love This

Most MOQ calculators are buried in sourcing platforms or spreadsheets. We built Topology’s MOQ Estimator to be clean, fast, and made for fashion founders.

And if you want to go further:

Final Thoughts

MOQ can feel intimidating, but it’s not a dead-end. It’s just another piece of the puzzle—and one you can learn to speak fluently. With the right approach, a bit of math, and a lot of empathy for how factories operate, MOQ becomes a tool—not a barrier.

Want to understand the fundamentals first? Read our full explanation on what MOQ means and why factories set minimums.

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