Why your MOQ 12000 PCS? Could that be reduced?
In the cosmetics industry, 99% of packaging manufacturers MOQ 12000 PCS, some of the big companies higher to 20000 pcs.
Doing customizing cosmetics order that is multi-link cooperation. When setting MOQ, not only considering our own production capacity, order profits, but also consider the purchase custom packing materials, raw cosmetics materials and other factors.
1. The tube/Container is the key factor for setting Cosmetics MOQ and in the cosmetics industrial normally each item MOQ 12000 pcs, some of the big company higher to 20000 pcs.
Manufacturing profits very small, and the order fixed costs are high. That is losses will occur at the beginning of production, and if doing the small order that easy lost money. Only reach MOQ that mass production can minimize production costs.
For example:
- Produce lipstick tubes, the mold cost is around 3,000-8,000 USD, and the tube machine produces 50,000 pcs around 4 hours. If doing small order like 10,000 pcs.
- First the preparatory work of begin production takes around 3 hours(installation of the mold to the machine, preparation of the raw materials, color matching and make sample to test) .
- After that produce 10,000 pcs within 1 hour. Plus all the time is 4 hours only produce 10,000pcs. But the machine continuous production 4 hours maximum output can do 50,000 pcs. so that is the main reason not accept small order.
Tube mold- Very big | Injection machine – Very big |
2. When cosmetics factory production different orders that need to stop one or several production lines and machine to clearing and sterilizing. Doing small order it’s very fast finished then change to other orders, but change orders still need to clearing and sterilizing, and doing these things will waste a lot of time.
3. From purchase, production, logistics distribution, all need the invest a lot of resources and work with different material suppliers. If the order quantity too small and packing complicate, the factory will be time-consuming and laborious. There will probably be no profit in the end if deducted production material loss cost
In summary, the win-win situation doing private label cosmetics is reaching our MOQ, We offer you a competitive price with good quality.