What is MOQ and How to Negotiate It as a Small Brand
Minimum Order Quantity (MOQ) is one of the most common barriers for emerging apparel brands. Here is what MOQ actually means, why factories set it, and how to negotiate it down without burning the relationship.
What is MOQ and How to Negotiate It as a Small Brand
Minimum Order Quantity — MOQ — is one of the most common barriers emerging apparel brands face when trying to work with overseas factories. A factory quotes 1,000 units per style, and you only need 200. What do you do?
This guide explains what MOQ actually means, why factories set it, and practical strategies to negotiate it down without damaging the relationship.
What is MOQ?
MOQ is the minimum number of units a factory will produce in a single order. It exists because manufacturing has fixed costs — setting up machinery, sourcing fabric in bulk, and allocating production time — that must be spread across enough units to be profitable.
MOQ is typically expressed in one of three ways:
| MOQ Type | Example | What It Means |
|---|---|---|
| Per style | 500 units/style | Each design requires 500 units minimum |
| Per colour | 200 units/colour | Each colourway requires 200 units |
| Per fabric | 500m minimum | Fabric mills have their own MOQ |
The fabric mill MOQ is often the hidden constraint. Even if a factory will accept 300 units, the mill supplying the fabric may require a 500-metre minimum — which translates to a higher unit minimum at the factory level.
Why Do Factories Set MOQs?
Understanding the factory's perspective is the first step to a productive negotiation.
Setup costs are fixed. Cutting patterns, programming machines, and training workers for a new style takes time regardless of order size. A 200-unit order and a 2,000-unit order require the same setup.
Fabric minimums are real. Mills sell fabric in rolls or minimum yardage. A factory cannot buy 50 metres of a specialty fabric just for your order.
Small orders carry higher risk. A small brand with no track record is a credit risk. MOQ is partly a filter to ensure buyers are serious.
How to Negotiate MOQ Down
1. Reduce Style Complexity
The more styles you order, the harder it is to negotiate. Consolidate your range. Ordering 500 units of one style is more negotiable than ordering 100 units each of five styles.
2. Accept Fewer Colour Options
Each colourway is essentially a separate production run. Limiting to two or three colours per style significantly reduces the factory's burden.
3. Offer a Higher Unit Price
If you cannot meet the volume, offer to pay more per unit. A factory's MOQ is ultimately about margin. If you can deliver the same margin at lower volume, the negotiation becomes straightforward.
4. Commit to a Repeat Order
Factories value long-term relationships. A written commitment to a second order — even a letter of intent — can unlock a lower MOQ on your first run.
5. Work With a Sourcing Agent
Sourcing agents like loomlink aggregate orders from multiple brands. This allows you to access factory minimums that would otherwise be out of reach for a single small brand.
6. Target Factories With Lower MOQs
Some factories — particularly in Portugal, Turkey, and smaller facilities in Bangladesh — specialize in small-batch production. Their MOQs are lower by design, though their unit prices are typically higher.
Realistic MOQ Benchmarks by Region
| Region | Typical MOQ | Notes |
|---|---|---|
| Bangladesh | 2,000–3,000 units | Lower for established relationships |
| Vietnam | 300–800 units | Varies significantly by product type |
| China | 200–500 units | More flexible for repeat buyers |
| Portugal | 100–300 units | Premium pricing, faster lead times |
| Turkey | 100–300 units | Strong for knitwear and basics |
These are general benchmarks. Actual MOQs depend on the factory, product complexity, and your relationship history.
What to Avoid
Do not misrepresent your volume. Promising 1,000 units to secure a lower price and then ordering 200 will damage the relationship permanently. Factories share information within their networks.
Do not lead with MOQ negotiation. Build rapport first. Understand the factory's capabilities and constraints before asking for concessions.
Do not sacrifice quality for a lower MOQ. A factory that dramatically drops its MOQ without explanation may be filling your order with leftover fabric or using it to train new workers.
Need Help Navigating MOQs?
At loomlink, we work with factories across seven countries and can help you find the right partner for your current volume — with a clear path to scale.
Book a free consultation to discuss your product and volume requirements.