What is an MOQ?

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Delivering a high-quality, tried-and-tested skincare product takes a lot of work. It’s necessary to not only create a quality product with the look and feel that defines your brand, but also ensure your product is consistent, stable, and effective, at scale, every time.

At FP Labs, we have more than 40 years of experience in manufacturing skincare products for a wide range of customers. We use this experience to head off a number of hurdles that occur in the production of skin care products to confidently lead our customers through the manufacturing process from start to finish. Like many contract manufacturers, we utilize a minimum order quantity, or MOQ, on the product lines we produce. These MOQs help ensure that we can offer competitive pricing for our customers that are ready to take the next step in an ever-growing market.

How to find the right MOQ level for your business.

Understand Your Demand

Your product is popular! Producing enough to meet that growing demand is great for your business. Being able to project how many units your brand can sell each month and each quarter gives you a good insight into how many units you need to produce in each production run. If you produce enough in one production run to cover a quarter, or even a year, you will save time and money.

Leverage Inventory

Not all your product needs to move at once. Keeping inventory on hand can speed up orders and provide your brand with a long-range strategy to keep revenue moving. The inventory that you keep on hand should align proportionately with your demand. At the same time, expiration dates dictate the shelf life of your products. Moving inventory at a predictable pace helps to ensure that your products will be delivered as fresh as possible.

Determine Profitability

Where does your brand break even? Knowing where your break-even point is necessary for growing brands to know when they are meeting their goals and bringing in a profit. Having your MOQ near your break-even point as you begin a new product journey is a reasonable place to start.

As your business grows and demand changes, your break-even point will change as well. In many cases, there are considerable cost savings in larger quantity orders. Thus, resulting in greater profitability.

Execute Your Strategy

Establishing a strong plan for distribution, promotion and sales will help ensure that you will have a robust interest in your brand. This should also give you a very clear look at your entire order landscape and ensure that your production quantity will meet your demands.

Work with Your Partner

At Federal Package we have worked with hundreds of innovators, creators, brands, and businesses to develop the right scale of product at the right time. We confidently take our customers through the project planning process and develop project timelines and milestones to ensure we develop the best product possible for your brand. We are happy to discuss MOQ’s along with all the requirements needed to create a great product.

Delivering a high-quality, tried-and-tested skincare product takes a lot of work. It’s necessary to not only create a quality product with the look and feel that defines your brand, but also ensure your product is consistent, stable, and effective, at scale, every time.

At Federal Package, we have more than 40 years of experience in manufacturing skincare products for a wide range of customers. We use this experience to head off a number of hurdles that occur in the production of skin care products to confidently lead our customers through the manufacturing process from start to finish. Like many contract manufacturers, we utilize a minimum order quantity, or MOQ, on the product lines we produce. These MOQs help ensure that we can offer competitive pricing for our customers that are ready to take the next step in an ever-growing market.

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