Just because you’re small doesn’t mean you can’t be mighty. Every business deserves the chance to compete with the big names in the market.
And the best way for businesses of any size to compete is with stellar packaging. Packaging that stands out is critical in the constant push-pull of the market. With more small businesses wanting to compete, the most significant barrier is typically high Minimum Order Quantities (or MOQs).
But it doesn’t have to be that way. With so many outlets for brands to compete in this new landscape of weekend farmer’s markets and many online options, brands should have every chance to thrive and succeed. Every sale matters when you’re a small business, and as the reputation for the business grows, brands can do more because they have the capital and power, but for those businesses that are still close to the starting gate, every hurdle can affect their bottom line.
We were a small brand at one time, so we’ve been there and continue to believe in the little guy, which is why we put this blog together to educate someone poring over their laptop, ready to take their leap into the world of small business. We hope this little how-to on the world of MOQ packaging helps generate some new business.
What is MOQ?
Minimum order quantity (MOQ) is the smallest number of units a supplier will make for an order. Suppliers do this so their production runs go as cost-effective as possible; otherwise, they risk losing money on setup time, worker hours, etc.
Why Do MOQ’s Exist?
Say a t-shirt company prints one hundred of a specific design and not just two shirts (we’re talking mass production, not a custom shop that does community events or family get togethers); selling the hundred makes more sense with all the costs involved for making the shirts rather than printing and selling just two shirts and being done with it. By printing more, the screen has been created, and the ink ordered is justified by the demand of the product. Just two shirts printed doesn’t justify the amount of ink and time spent, hence the low MOQ order.
A supplier’s MOQ is set, so they make a minimum profit off of every order.
How Do Suppliers Set Their MOQ?
MOQs can differ between regions, so what’s sent out in Korea is not the same as in Quebec. It’s essential to research what you need (which is why you’re here) for your order requirements.
MOQs vary between products and suppliers and are decided by things like:
- Raw material cost
- MOQs set by their suppliers
- Custom orders
- Production line cost
- Shipping and storage cost
How to Negotiate MOQs for Custom Packaging
If there’s a high MOQ threshold, how can a small business compete with that, especially ones just starting with minuscule budgets? For small businesses, it’s all about strategy. Think about how much you sell each weekend. Pay close attention to the details, look at your orders and really drill down into what sells and how much product you think you can push.
Is there a festival coming up? What about farmer’s markets in a different part of town or a Christmas bazaar? Think about the next few months and what you can do to mitigate the impact. Special holiday packaging is also an idea; everyone loves a pumpkin or a Christmas tree on their low MOQ custom packaging.
At ePac, we have low MOQ packaging orders because we’re a digital brand. Because we don’t have costly setup fees that take time and money from small businesses, we can pass those savings on to our customers. We’re dedicated to giving customers the best price per unit.
The bigger the order is, the more the price drops, making it better for businesses to place larger orders.
With a low MOQ, we can help companies experiment with new looks and brand identity as they’re growing and developing with potential changes. But back to the digital thing, because changes are as simple as uploading a file, minimum orders for experimenting can become a constant test case with real-time data. Costs can be observed and budgets can stay on track thanks to a plan for success that actually works.
Tips to Get The Best Value From Your Orders
MOQs shouldn’t put sourcing custom packaging out of reach, but instead, thinking strategically will save you money down the line. An MOQ for packaging helps guide order fulfillment and marketing strategies – because it’s about working toward end goals.
Small brands aren’t coming out of the gate buying truckloads of anything. They need packaging sources to help them achieve their desired look and efficacy in small batches to test the market.
The cost structure of low MOQ packaging empowers small-batch test marketing. Once the brand receives feedback, a low MOQ approach also has baked-in flexibility. Low MOQ custom packaging can work for your business, we’ve helped a lot of brands see their customers grow, just by working with them strategically.
Let’s talk if you’re a small business ready to leap into custom packaging. We can help you develop your dreams into reality. We love seeing small businesses evolve into tomorrow’s powerhouses. We’ve got a ton of samples to send and are ready to share our stories about the brands we’ve collaborated with who went from the garage or kitchen to warehouses, selling their products in places like QVC and Walmart.