Why MOQ is necessary for Plastic Injection molding factory
MOQ is the minimum order quantity. Not all order suppliers will accept and start production. Usually the supplier will give the order purchasing customer a minimum order quantity. Only when the minimum order quantity is reached will the manufacturer be willing to accept the order. Most buyers You may have questions, can’t you still make money with a small minimum order quantity? In fact, this MOQ is very important for both suppliers and buyers. Let me explain it to you.
The minimum order quantity generally depends on the cost required by the supplier’s production, which includes not only labor and material costs, but also the cost of starting the machine, In most cases, the cost will only increase when the production volume is large, and the price per unit product will decrease at the same time, which should be the most favorable cost. Therefore, most manufacturers have a minimum order quantity of 1,000 pieces, and the highest can even reach 10,000 pieces. However, some injection molding suppliers may be willing to provide test orders, usually 50-200 pieces, and buyers only need to pay for the test order.
Main reasons why MOQ is necessary for a Plastic Injection molding factory
Customized plastic injection molding products represent unconventional products, which will involve mold, materials, technology, and other issues;
MOQ is affected by the fixed cost of raw materials, and the injection molding factory will only start production if a certain quantity is guaranteed.
MOQ is affected by other elements, such as product’s size, color, material, logo, etc.
One of the main aspects that affects the price of a product is raw materials. If the customer needs POM materials and special HDPE materials, the factory needs to purchase them in full, thereby increasing the cost. MOQ allows customers to take this part of the cost into account, so that suppliers do not have to pay for unnecessary materials.
The reason to have cheap prices is the management fee and packaging fee saved by large quantities of products which means the more products you order, you save more cost, and you will get cheaper price. The minimum order quantity is also the basis for ensuring our normal operation and long-term cooperation between us and our customers. Because the profit of plastic injection molding factories is too low. If we don’t set a certain minimum order quantity, we probably will lose our profit, which will affect our normal operation.
Conclusion
To sum up, all customized products will have a minimum order quantity set based on the actual situation. The setting of the minimum order quantity allows companies to provide products to customers at a more cost-effective price. This is not only for customers to save money, it is also a guarantee that the factory can make profits. If there are no minimum order quantities for many products, it may be difficult to make profits. From these aspects, it is very necessary to set up MOQ, which can promote cooperation between both parties to create a win-win situation.
3
