Minimum Order Quantity (MOQ)

Minimum order quantity (MOQ) is the lowest number of units a supplier will accept in a single transaction. Suppliers set MOQs to recover the fixed costs of setup, tooling, and factory changeovers that apply regardless of run length. A screen printer setting up inks and screens spends 30-45 minutes before printing the first unit - that setup cost must be recovered across the order quantity, which is why per-unit pricing falls as quantities rise.

MOQs in Practice

In promotional merchandise, MOQs vary by product type and decoration method. Most suppliers set MOQs of 25-100 units for screen printed apparel and hard goods. Products requiring custom tooling, moulding, or specialist decoration may carry minimums of 250-500 units. Suppliers offering low-minimum or no-minimum products typically use digital print rather than traditional decoration methods, which have lower setup costs but higher per-unit pricing at volume.

When a customer brief calls for quantities below a supplier's MOQ, distributors have three options: negotiate a below-minimum surcharge (typically a setup-equivalent fee applied to the price per unit), source from a specialist low-minimum supplier, or substitute a product with a compatible MOQ that still meets the brief.

MOQs also affect stocking decisions for distributors who carry inventory. Ordering to the MOQ to fulfill a single campaign often leaves surplus stock that must be stored, tracked, and eventually discounted or written off. Where repeat orders are likely, aligning purchase quantities to anticipated annual usage rather than single-campaign demand reduces per-unit cost and avoids stock accumulation.