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What is a MOQ in manufacturing?

By Zippia Team - Jan. 8, 2023

A MOQ in manufacturing is a Minimum Order Quantity (MOQ), which represents the fewest number of specific units a business is willing to sell a single customer for one sale order. Many different kinds of manufacturers use MOQ in different ways.

For instance, the manufacturing of t-shirts might require a wholesale buyer to purchase hundreds of t-shirts for one sale. Minimum order quantity is used mainly for sales margins, the amount of profit that is generated by the sale of a product.

If a manufacturer sells goods at a minimal markup or on a tight profit margin, it can take a large volume of orders to break even, after the manufacturer includes the costs of overhead and other recurring costs.

What is a MOQ in manufacturing?
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