Many new brands that are thinking about entering into the kitchen appliance industry (specifically with their garbage disposal line) are often faced with a very high Minimum Order Quantity (MOQ) which presents them as an immediate barrier due to the increased financial risk, slow market testing and increase complexity associated with managing their inventory. Due to all these factors, "Low MOQ" garbage disposal manufacturers have become an attractive option for new brands to consider. But is it an ideal fit for new brands?

The answer is: "Yes" if they use "Low MOQ" strategically.

What is considered "low MOQ" when a garbage disposal manufacturer quotes you?

Like most kitchen appliance manufacturers, traditional OEM/ODM factories will have MOQs that range anywhere from 500 to 2000 units per model. This has everything to do with sourcing of motors, tooling and efficiency of production. An OEM/ODM Manufacturer who offers "low MOQ" will typically have a MOQ of 50 to 300 units per model (or substantially less than fifty units for some standard configurations).

When we think about "Low MOQ" we tend to associate it with "lower quality", however that is not the case, it typically means:

- An OEM Manufacturer/Motor platform that has been already manufactured
- Core components are standardized
- Flexible branding choices (Logos, packaging, instruction manuals, etc..)

The Benefits of "Low MOQ" for New Brands

1. Reduced Financial Risk

The majority of new brands do not have accurate demand forecasts and because of this low MOQ allows the company to enter the marketplace without having to carry an excess of inventory or tie up too much financial capital.

2. Speedy Market Validation

Testing different power sources (PMDC/AC or BLDC) and different noise levels (Quiet vs Standard) can be performed by entering into the low MOQ segment of the market. By gathering data from these tests, the company can finalize their product strategy prior to large-scale production.Brand Positioning Simplicity

For startups looking to get their product into customers' hands quickly and easily, going to market with just a few basic models is a good approach. It's important for them to create a simple value proposition around something specific, such as "quiet operation" or "a compact design" to attract consumers.

Low MLQ vs. High MLQ - How to Identify Key Differences for New Brands

Low MOQ (minimum order quantity) also has drawbacks, which new startups must take into consideration. In particular, new brands need to be aware of the potential limitations associated with the use of low MOQs as follows:

1. Higher per-unit pricing
Reasonably small production runs generally result in higher per-unit costs versus producing larger quantities of products. However, taking advantage of the lower amount of inventory usually justifies the additional per-unit cost because it reduces the amount of inventory that may not sell and provides quicker cash flow.

2. Limited Product Customization
Highly-customized products (such as custom molds or electric motor designs) must typically have a higher MOQ. The typical solution would be to offer semi-custom OEM products to begin and convert over to fully custom ODM products only after it is proven that sales volume is sufficiently strong.

3. Importance of Choosing the Right Manufacturer
Note: Not every \"low MOQ\" supplier is actually a manufacturer. Some companies offering low MOQ are simply trading companies that do not have a manufacturing facility and, therefore, do not have the proper quality control in place, nor are they able to provide consistent long-term performance.

What You Should Look for When Selecting a Low MOQ Manufacturer
By selecting a manufacturer that meets the criteria noted below, new brands can avoid these common pitfalls:

1) The manufacturer has in-house capabilities to produce motors and assemble their products.
2) The manufacturer has demonstrated experience manufacturing OEM/ODM products for full service and international brands.
3) The manufacturer can demonstrate clear quality standards and certifications.
4) The manufacturer has the ability to grow with the new brand to ultimately manufacture larger quantities in the future.

An established manufacturer should view low MOQ as the first step of a long-term relationship rather than a one-time opportunity to manufacture an initial order.

When to Move Away from Low MOQ
A new brand should take the following steps once they have established stable, predictable monthly sales, have clearly identified marketing feedback, and have established a product uniqueness. Once these factors are established, the brand can begin to \"scale up\" their product offerings, seek out ways to reduce unit costs, and invest in further developing products based upon the brand\'s unique characteristics. Please note that low MOQ is used during the launch phase of a new brand and should not be seen as an ongoing opportunity.