What Are Minimum Order Quantities & Why Are They Required?

You just found the perfect promotional product, and as you picture your logo on the chic water bottles or custom pens, you notice that dreaded minimum order quantity (MOQ) requirement. Your heart sinks a little, and you start wondering if there's any way around it.

For over 20 years, 4AllPromos has been guiding clients through the ordering process, and we’ve met this scenario before. We completely understand your frustration, and we have recently expanded our assortment of lower MOQ items to meet our customers’ needs. The MOQ requirements affect everyone shopping for bulk promo items, and they are hard to avoid. Startups, small corporate events, and a small ecommerce business managing tight inventory levels are situations in which the MOQ can be a bother.  

Understanding why minimum order quantities exist and how suppliers set these MOQ requirements is important for your promo campaign purchasing decisions. Instead of straying away from the hurdle of MOQs, make them an advantage. Take 4AllPromos’ experience in the promotional products industry to optimize costs, improve inventory management, and make the most out of your business giveaways and branded merchandise.

What Does MOQ Mean?

MOQ, short for minimum order quantity, is a term for the minimum number of units that must be purchased in an order. It is a common practice for businesses and retailers that sell items in large quantities. MOQs are a way for manufacturers and suppliers to cover production costs and maintain profitability, while offering low per-unit pricing to customers. 

Small-batch production is generally economically inefficient. Every custom order requires substantial upfront investment regardless of order size, including machine calibration, screen setup for printing, plate creation for embossing, and quality control during preparation.

What’s the difference between EOQ and MOQ?

EOQ (Economic Order Quantity) is the ideal order size that minimizes the total cost of inventory management, including both ordering costs and holding costs. In the promotional products business, the goal is to order enough to avoid shortages but not so much that storage costs become prohibitive. 

While MOQ is primarily about meeting a supplier's minimum order requirements, EOQ focuses on knowing the most cost-effective order size based on demand forecasts, inventory holding costs, and production run factors. Both concepts play a role in managing inventory turnover and making sure that your business orders the right amount of product without overstocking or stockouts.

Why are there MOQs for Promotional Products?

When you place an order for promotional products at 4AllPromos, there are a few moving pieces behind the scenes. After you approve your digital proof from the art team, our production team receives your order and begins calibrating machines, setting up screens or plates, and preparing for quality control checks. These administrative costs remain constant whether we're producing 25 units or 250 units.

Our suppliers often have their own high minimum order quantity requirements for specialized materials and items. They get their items in specific amounts, and it’s not in their best interest to open a package of units without using the full quantity. For something like custom-colored silicone wristbands, our supplier might require us to order materials for at least 100 pieces to justify their production run. Asking for a small production run would break their own economies of scale.

Take, for example, the process to print 1 item vs 100 items with your logo. In either case, we still need the same amount of setup time, the same plate preparation costs, and quality control testing. For simplicity's sake, say each of these tasks is a $50 upfront cost to our business. When you order 1 product, that’s an additional $150 to make the product. Increase the order size to 100 items, and the cost per unit drops dramatically to $1.50.

Making MOQs Work in Your Favor

MOQ requirements aren't designed to make your life difficult. They're actually carefully calculated to give our customers better value and ROI. MOQ pricing creates volume discounts that increase your profit margins or expand your brand awareness further. 

The break-even point shifts when you order in larger quantities. You're not just meeting our MOQ requirements, you're accessing economies of scale that make each piece significantly more cost-effective. Once the shipping costs are calculated and added into the mix, the savings on ordering in bulk increase even further.

When your pieces are being sold as branded merchandise, high MOQs are better for your ROI, inventory management, and inventory forecasting.  Instead of constantly reordering small quantities, which increases your administrative costs, inventory costs, and creates more opportunities for stockouts, MOQs let you maintain optimal stock levels and pricing.

Tips for Making MOQ Requirements Work for Your Business Model

Don’t feel overwhelmed by MOQ requirements. Instead, look at them as a way to plan beyond your immediate event. 

Tip #1 - Reframe Your Promotional Product Thought Process

Instead of thinking "I need 15 premium company swag items for lead gen at next month's trade show," start thinking "What promotional product needs will the business have over the next 6-12 months?" This shift in forecasting helps you see MOQs as inventory investments rather than obstacles.

Many of the successful businesses 4AllPromos works with create annual promotional product budgets and place larger orders instead of multiple small orders. This approach dramatically reduces their cost per unit and simplifies their inventory control.

Tip #2 - Multi-Department Collaboration and Partnerships

Your sales team might need a strategic leave behind, while HR wants welcome gifts for new employees, and marketing needs trade show giveaways. By combining these business needs into a single order, you can easily meet MOQ thresholds and reduce overall procurement costs.

The volume discount benefits are easy to capture when all teams are aligned on a promo item.

Tip #3 - Strategic Product Selection

Choose items that work across multiple occasions and seasons. Instead of ordering event-specific items with high minimum order quantities, select promotional products that work for your brand year-round. A well-designed notebook or quality pen with your logo works for client meetings, intern onboarding, and career fair handouts. 

Tip #4 - Inventory Management Software Integration

If you're serious about optimizing your promotional product purchasing, consider how these orders fit into your broader inventory management system. Just like ecommerce businesses track sales data, you can track promotional items just like any other SKU, monitoring inventory levels and streamlining reordering based on historical data points.

When Smaller Quantities are Necessary, There are Low MOQ Solutions

We understand that sometimes you genuinely need a low minimum order quantity solution. Our sales team can guide you towards promotional products that have lower MOQ requirements.

Certain imprint options are easier to make smaller order runs. Digitally printed items, embroidery, and engraving are often available in lower quantities. Our corporate gifting options also have premium options that can be customized in smaller quantities. 

In addition to our low minimums category, we conveniently have the option on all of our categories to sort by minimum quantity. 

Check Out Some Recently Lowered MOQ Promo Items

Easy Fold-Away Tote Bag

Moptoppers Eye-Popping Phone Stand

FAQ About Minimum Order Quantities

Can you negotiate MOQ requirements?

Sometimes, yes, but successful MOQ negotiations usually involve accepting premium prices. Asking another business to adjust its operations requires long-term relationships and a mutual benefit for everyone involved.

Suppliers are more likely to work with MOQ flexibility if you have a history of placing orders or are committing to multiple orders throughout the year. If we repeatedly see customer demand for an item at lower minimums, we do our best to bring down the set MOQs. 

Why are the minimums different on all the products?

Each supplier we work with has set their own order minimums. Minimums are based on the items and imprint methods. For example, it is very expensive to run equipment and make screens for a small order of printed, cheap promotional pens, whereas embroidering quarter-zip jackets is easier to run in small batches.

Can I order whatever quantity I want above the minimum order quantity?

Yes, once you’ve hit the minimum, you can order as many additional items as you want. In very rare instances, items are required to be bought in specific increments. That will be noted on the product page if that is the case. 

Why do promotional product suppliers set MOQs?

Promo product suppliers set MOQs for their supply chain management and production efficiency. It allows them to take advantage of economies of scale, source the raw materials needed to make the products, and manage inventory and lead times.

Can I get a sample before ordering the minimum quantity? 

We do offer samples of most of our items. Ordering a sample before a run of products with a higher MOQ is a great way to know if it is going to be the right product for your business. It also lets you plan ahead and look for opportunities to distribute your excess inventory at additional events and festivals instead of warehousing it until next year. 

Fill out our Sample Request form to see if you’re ready to make your MOQ purchase! 

Get Maximum Results With Minimum Order Quantities

Minimum order quantities are the way that promotional product suppliers are able to operate efficiently, maintain quality standards, and offer competitive pricing. Rather than viewing MOQ requirements as obstacles, successful businesses use them to reduce costs, improve inventory management, and access better products.

Plan your promotional product purchasing ahead, think strategically about your inventory needs, and build strong supplier relationships with distributors like 4AllPromos. Our team guides you through MOQ requirements during your promotional product shopping experience. 

Make the MOQ requirements work in your favor and get the best possible value from 4AllPromos.