First of all, what is MOQ ?
MOQ is abbreviation for min order quantity, the smallest quantity requirement for an order.
Most handbag factory have requirement on the MOQ, and different manufacturers have different regulations for MOQ,someone need at least 300pcs, some 500pcs,and some even 1000pcs. And then some customer may confuse why there need MOQ for my order? Are you not a factory?Why you can not accept small quantity like 20pcs or 50pcs etc ? Now today let us tell you why it is hard for factory to do small quantity order and there are a MOQ requirement .
In fact, it is because the cost of the production. And what will be the production cost matter for?
These will need to talk about the human labor cost, material purchasing cost, mock up cost,R&D development cost etc. These will be fixed cost for a factory operation. Since the operation cost can not be change, so the lower quantity for the order you placed,the higher cost you need the pay. And this is why handbag factory ask for normal MOQ for customer order.
And now let’s take a look for the fixed cost for operating a factory.
1.Human Labor
No matter for workshop management or purchasing , production or quality checking, all these will need human labor to complete. So there not just venue rental, also a big budget for human labor cost.
2.Purchasing Cost
As for customized order,so it will be different demand for material,hardware and accessories. And the handbag factory will need to purchase the material based on the order requirement from the market, which to some degree it can enjoy favour price for bulk quantity.
And some customers ask for customized their logo on the fabric or leather bag hardware, this also will need a high MOQ from the fabric or hardware supplier. It is the same reason why handbag factory ask for MOQ for bulk order.
3.Production Cost
Every factory has production process: material purchasing,cutting,sewing,quality checking, packaging etc.
Above process will be the same for every single customer order,no matter it is 100 pcs, or 10,000 pcs. This explains the larger order quantity will be enjoy the most effective economic scale production cost.
4.Machine And Mock Up Cost
After material purchasing,it also need different machine and mock up to cut material. For different material will need different sewing machine,as well different handbag style will need different mock up.All these are the cost for production. So, in handbag manufacturing, small quantity will mean no profit for production. And sometime a small change will mean a big different even difficulty for production since the new mock up.
To sum up, MOQ requirement is a handbag factory the basic operation need, and hope all of our customer can understand this.
Champion leather, a leading leather handbag manufacturer located on Guangzhou,China. In the past 13 year,we have been engaged in all kinds high end quality leather handbag development and producing. We deeply know that customers is the soul for a factory survival, so we pay a high attention for the handbag quality and we have strict quality control team for 100% quality inspect. As well, we have more than 300 skilled workers to achieve the stable and sufficient production capacity to make the fast production lead time guarantee.
What is more,we have professional R&D department for fully customized sample in fast lead time at 5-7 working days, which help your business grow up fast and stronger.
In Champion factory, we accept low MOQ at 100pcs for new start brand,and we have absolutely strong ability to provide the most competitive price for bulk quantity for big business.
Anyway,highly welcome to contact our email: bagsfactory@aliyun.com or Whatapp +8613622742813 for more discuss.
For more handbag knowledge,please kindly subscribe to www.bagsfactorycn.com.
Post time: Sep-01-2021