MOQ Is Just One Piece of Pricing
Most founders focus on MOQ.
Factories focus on something bigger:
👉 Total production economics
The 5 Components of Manufacturing Pricing
1. Materials
Often the largest cost driver
2. Labor
Varies by geography and complexity
3. Overhead
Factory operations, utilities, management
4. Margin
Factories need profit too
5. Risk
This is where MOQ comes in
Higher risk = higher price or higher MOQ
Why Two Factories Quote Different Prices
Because they’re optimizing differently:
- Efficiency vs flexibility
- Scale vs customization
- Stability vs growth
What Founders Get Wrong
They compare quotes without understanding:
- What’s included
- What’s excluded
- What assumptions were made
The Real Insight
MOQ, pricing, and risk are all connected.
You can’t change one without affecting the others.
👉 Learn how to navigate this: How to Negotiate MOQ
