Why are Minimum Order Quantities (MOQ) Important for Custom Product Packaging?
Have you ever been frustrated in the supermarket when the only option available is a larger quantity than you need? While Minimum Order Quantities (MOQ) are largely related to custom product packaging, pretty much all items are bought in bulk, from pairs, trios, dozens and upwards.
A Minimum Order Quantity refers to the smallest number of products a supplier will produce for a single order. They are essential for business operation because the MOQ covers the cost of production for a product.
At Focus Print Group, we aim to work with small and medium-sized Australian businesses, which is why our MOQs vary from 500 to 20,000 units — aiming to make high-quality custom product packaging as accessible as possible for small and medium-sized Australian companies. We offer crisp packaging construction, hard-wearing materials for transportation, high-quality graphics, and various impressive technical features to provide an eye-catching aesthetic finish for your custom product packaging.
What is the Purpose of MOQs for Custom Product Packaging?
Suppliers set MOQs to cover the cost, effort and energy required to produce a specific production run. MOQs are independently placed by a supplier, as each supplier’s production costs differ from one another. Hence, why some brands have 4-pack cookies, and some have 10-packs, and why MOQs can be defined by the number of units or by the amount of money.
If manufactures were to produce fewer units than the MOQ, they might not be able to cover the production costs or make a profit from constructing a product. It is not cost-effective or time-efficient to run a production line without guaranteed compensation, if the time and cost of production do not meet the MOQ.
Most notably, MOQs are broad specifications that identify the company’s target audience and what types of clients the business is suitable to work with. Setting MOQs communicate the printing company’s capabilities and how many units it takes for clients to work together.
Besides, suppliers of the raw materials used to make custom product packaging set their own MOQs. As custom product packaging materials are bought in bulk, the material costs also influence the final MOQ.
MOQs can seem impossible for small businesses to meet, especially when the company is still in its early phases and don’t necessarily have the capital to make a significant investment. But MOQs at Focus Print Group are set to ensure our clients receive high-quality manufacturing.
But the real benefit of a MOQ is the amount represents the lowest possible price per unit. Generally, people who negotiate and get a lower order quantity usually pay a higher price per unit. The reality is discounts lie in the higher-order volumes!
Factors that Influence the MOQ of Custom Product Packaging
At Focus, we pride ourselves on producing high-quality and unique custom products for our clients. Our minimum order quantities range between products because the more customised a product is, the higher the MOQ will be.
As a product becomes more customised, more resources are required, leading to more production expenses. To make a product worth the resources, the volume needs to be higher to produce a cost-effective production.
The Cost of Raw Materials
One customised product can have hundreds of components, and usually, one supplier is not enough, so one product may require purchasing and delivery from multiple suppliers. The time necessary to manage and organise each competent to ensure they arrive on time affects the MOQ. Also, not forgetting that the raw materials have their own MOQ, which is factored into our MOQ.
For the sake of efficiency, factories can’t (or won’t) hold materials in their inventory, as warehousing fees are expensive. Components are usually purchased after the supplier receives your order, so minimum quantities are a factor for all parties from the start.
The Cost of Running the Production Line
At Focus, we have a huge state-of-the-art manufacturing facility in Sydney. Each product we produce requires reserving floor space, hiring training operators and supervisors for the assembly process and running specific equipment and machines for one production line.
Specifically, we have expensive machinery setups in our facility, from the tool that cuts the packaging, stereo cost for flexible packaging printing, plates cost for high-quality offset printing, etc. The more complex the custom product packaging, the more complex the assembly line and the higher the MOQ can be.
The Amount of Custom Applications.
Every step of the packaging process is customisable; each option has a different cost associated with the final MOQ. We supply multiple types of paper stocks, including coated/uncoated, 210-650ums, 200-400gsm and specialty. Various embellishments, including embossing or debossing, foil, UV / spot UV and cello glazing. Multiples types of closure styles from a crash lock, snap lock, tuck end and custom closures on request.
It can seem overwhelming having so many choices to choose from, but do not worry as our friendly printing experts guarantee to help you utilise the best option to ensure your packaging suits your product completely. Utilising the best packaging improves the shelf-life, distribution, structural stability, and graphics to look outstanding on the shelves against competitors.
What Are the Minimum Order Quantities for Focus’ Custom Product Packaging?
- Paperboard Folding Carton Packaging 1,000 Units
- Food Sleeves 5,000 Units
- Ovenable Trays and Lids 5,000 Units
- Cake Boxes 3,000 Units
- Corrugated Boxes 500 Units
- Premium Mailing Boxes, Mounted Boxes 500 Units
- Pizza Boxes 10,000 Units
- Flexible Stand-Up Pouches 5,000 Units
- Flexible Box Bottom Bags 20,000 Units
- Flexible Rewinds 5,000 Meters
- Flexible Drum/Shrink Sleeves 2,000 Units
At Focus, our packaging range can be customised to suit your product and branding needs. With specialised features from styles, shapes, size, stocks, colours and custom prints, to name a few.
If you are looking for a reliable supplier to design and produce the best custom product packaging solutions, contact Focus Print Group today. With more than 30 years’ experience and an all-in-house state of art premises, our team is ready to bring your ideas to life. Whether you need Paperboard, Cardboard or Stand up Pouches, our team can assist you with any of your packaging needs. Contact our Sydney office on (02) 8755 7888 or Melbourne office on (03) 8831 2000, for a FREE packaging printing consultation.