The TRUTH About Manufacturing #fashion

Why It Matters

Understanding MOQ ranges and payment structures is critical for cash-flow planning and go-to-market timing for apparel startups; negotiating terms and building supplier relationships can make or break early production runs.

Summary

Factories impose minimum order quantities (MOQs) that vary widely by product complexity and supplier maturity. Start-up or simple products can often be produced at MOQs of 20–100 units, while highly customized items or fabrics not stocked by the factory can push MOQs into the hundreds or thousands. Established factories tend to raise their minimums as they scale, but typically offer higher quality in return. Payment terms commonly begin with a 50% deposit and 50% on delivery, with net terms (e.g., net-30) available later after a proven relationship.

Original Description

Manufacturing is often times expensive and can be a hard lesson to learn however, in this video we dive into what you need to know about manufacturing paying for your goods and net terms so if you’re starting a clothing brand, make sure you watch this