Recently started an eCommerce brand and looking to directly source your stock from a manufacturer? If you’ve done your research, you must know it’s almost impossible to find a manufacturer that doesn’t have minimum order quantity (MOQ) restrictions.
Typically, manufacturers have high minimum order quantities. And businesses with a low budget struggle with finding clothing manufacturers with no minimum order. But are the high MOQ restrictions just a way for greedy factory owners to make money? Or is there an actual reason behind it?
Keep reading to know why you can’t easily find a low MOQ clothing manufacturer and some tips on finding the right one for your business!
How Cloth Manufacturing Factories Operate
To understand why clothing manufacturers have high MOQs, you need to know precisely how they work.
First things first: factories aren’t your local tailor’s shop. You can’t expect them to stitch a suit entirely and then add buttons or pocket squares to it later once everything is done. That’s because, in factories, every process occurs in an orderly chain. If any element of the process goes haywire, the entire process is disrupted.
Having said that, there are some other critical things about cloth manufacturers that are the root cause of high MOQs.
Causes of High MOQ Requirements
As a new business owner in the 1023 billion dollar (men and women’s) clothing industry, you need to be aware of some standard practices followed by manufacturers everywhere. These practices are the reason why factories have high MOQ requirements. Check them out below!
1. There’s Plenty of Hidden Work
You might think manufacturing clothes is just about taking the fabric and stitching it into the desired shape. But that’s not true when you consider a full-fledged cloth factory.
The process starts with taking a fabric, dying it in specific colours, finding the right threads, and finally stitching it. That is why, every time you order a new colour variant of the same design, the manufacturer has to repeat the entire process from scratch.
For example, as a small business owner, you might be looking for ways to skip or adjust the MOQ requirement. Often, you might think of meeting the requirement by ordering different colours of the same pattern. But the reason a factory will deny your request is that the process of making the cloth will include the same amount of work for the manufacturer.
2. A High Order Quantity Makes Manufacturers Efficient
The way factories increase their profit margins is by making themselves more efficient. And one of the best ways to do that is getting used to what they’re making.
Think of it this way: if you’re asked to draw an apple for the first time in your life, you’ll be slow and careful with your drawing. But if you’re asked to draw 100 apples on 100 sheets of paper, you might be slow with the first few drawings, but you’ll soon get used to it and gain speed.
The same happens with factory workers as well. If they have to manufacture just 100 shirts, they don’t get enough time to become used to work before the order finishes. And with every new design involving such a low order quantity, they will be equally slow. This reduces the overall efficiency of the factory and makes their margins less.
In the case of large orders, however, the workers become used to the process within a few days and start working almost machine-like. This leads to more work done by every worker per day and, in turn, the better overall efficiency of the factory.
3. They Don’t Have the Time to Give You A Taste of the Real World
The internet has blessed us with a sea of information on almost everything imaginable. As a result, people who have done their online research think they know all they need to. As an apparel startup founder, you might think so too.
However, the real world doesn’t operate as you were taught on YouTube or TikTok. People are selfish, do not like to waste time, and business is all about growth and revenue. And as a new business owner, you will need to learn all this the hard way. But factory owners or manufacturers aren’t the people who’ll train you.
For example, as a new business owner, you might not know the work that goes into stitching an extra button on a shirt you ordered. And instead of explaining that to you, the factory owner would refuse to take an order fearing such requests.
They simply don’t have the time to tell you how things work. Moreover, they don’t want the financial and logistical risks of working with someone inexperienced. As a result, many reputed clothing manufacturers have a no-startup policy under which they refuse to make deals with new business owners.
4. Sampling is Effectively Free, and No One Likes to Work for Free
Before you become a good client for a manufacturer, you’ll take time to sample their pieces. And even though you might be paying for the samples, your manufacturer is doing more work than you think.
The samples are effectively free work because they don’t make any profits unless you order bulk quantities.
Many manufacturers don’t like this burden. They prefer taking bulk orders because they look to make profits on every order.
What Can You Do If You Don’t Meet MOQ?
Even though you now understand high MOQs, you might still not have the budget to meet the requirements. So what do you do in that case? Keep reading to find out.
1. Be Professional In Your Approach
Before you speak to a clothing manufacturer, get advice from someone experienced in the industry. They’ll teach you more about why the MOQ limits are in place and help you find the right way to talk to a manufacturer.
You can always hire an experienced professional for this. Another way could be approaching industry leaders over the phone or by email and setting up meetings to pick up their brains. Most of them might not have the time, but you will still find a few ready to help.
Once you have understood the industry well, make a list of things you’re looking for in your source company. When you talk to manufacturers, be clear about your expectations. And instead of sounding confused about what you want to order, be confident. Ask questions that don’t have obvious answers, and let the manufacturer know how serious you are about business.
2. Be Personable Enough to Have Rules Bent For You
We break or bend the rules all the time for people we love. The same is true for manufacturers too. If you establish a good repo with a manufacturer, they might be more willing to give your low MOQ order a shot.
Remember, you’re working with people, not machines. If you’ve built a valuable connection with a factory owner, they would not mind taking risks for you. That’s simply because they trust your work ethic.
So it’s always crucial to work closely with experienced professionals in your industry and build a strong network involving them. As you try to pave your path, they’ll be more willing to help you.
Some excellent ways to build connections include interning with or working at factories. Even if you aren’t familiar with stitching basics, you can look for marketing or business development positions within the manufacturing firm. Your purpose is to gain experience and build meaningful relationships.
Low MOQ Clothing Manufacturers: Pros and Cons
Working with a low MOQ clothing manufacturer comes with its fair share of pros and cons. And you must know what these are.
The Benefits of Working With Low MOQ Manufacturers
1. They Work With Startups and New Business Owners
Naturally, low MOQ clothing manufacturers do not refuse to work with new business owners. That’s because their main clients are startup owners with zero to little experience.
2. They Don’t Require a Large Financial Commitment
This is the most obvious benefit of working with a low MOQ manufacturer. Such manufacturers, often also called custom clothing manufacturers, take small orders. This means that you don’t need to spend exorbitantly just to get your first few stocks in.
The Downsides Of Working With Low MOQ Manufacturers
1. The Output Cost is High
Going with low MOQ clothing manufacturers for startups might seem appealing, but there’s a huge downside. Such factories charge more for producing fewer items. So even though it looks like you’re spending less, you’re effectively spending more for less.
Since your cost price is going to be high, you’ll have to keep your selling price high too. Doing this might even put you at a disadvantage in the market when it comes to competition.
How and Where to Find a Low MOQ Clothing Manufacturer?
Explore Trade Fairs
Trade fairs are an excellent way to find low MOQ clothing manufacturers from around the world. International trade fairs are organised almost everywhere these days. You can check for one in your nearest city.
In most such trade fairs, clothing factory owners are present with their samples. You can check out their rates, shipping times, and general samples thoroughly. Since many of these manufacturers are from countries like India, China, Bangladesh, etc., where labour costs are low, there are high chances you’ll find the right low MOQ manufacturer at a reasonable price.
Internet Search
A google search might be the simplest way to find a low MOQ manufacturer. You can easily find several advertisements from such manufacturers. However, before you trust these websites and do business with them, it’s important to double-check their credibility.
If you encounter a manufacturer’s website, check their client testimonials and certifications, and request more information from them until you’re sure of their legitimacy.
You can also check community spaces like Reddit, Quora, or Facebook groups to find low MOQ clothing manufacturers. There’s a big advantage to using these over Google search results. You get community approval and plenty of customer experience comments without asking the manufacturer.
Visit the Manufacturer in Person
Once you’ve seen a manufacturer online or heard about them from someone, it’s a good idea to visit them in person. On your trip, you might even be able to find additional low MOQ manufacturers who might offer more perks.
In-person visits are an excellent way to analyse everything yourself and gain experience. There are low chances of being cheated and a high probability of getting better quality.
Some countries you can try include Bangladesh, India, Hong Kong, etc. Do not sign any contracts without having your legal team check them. Also, do not make cash payments if possible.
Just make sure you have a solid plan and itinerary in place before you finalise your travel plans. That way, you won’t waste time and get the maximum out of your trip.
Get a Sourcing Partner
You might be new to the clothing industry, but there are plenty of sources to get help from. You can get in touch with a sourcing company in India to find a good low MOQ manufacturer.
Considering the robust startup networks of today, many companies that specialise in finding the right manufacturers for new businesses have emerged. If you’re completely lost and have no idea who to make a deal with, you can contact one of these companies in your area.
Conclusion
We hope you now understand why many clothing manufacturers have high minimum order quantities. But after reading this article, it should be easier for you to find one with low MOQ requirements. Over time, as your sales increase, you can migrate to a high-MOQ supplier to reduce costs.
Have any more questions? Let us know in the comments below!