Minimum order quantity (MOQ)

Le Minimum ordermore often referred to by its English acronym MOQ (Minimum Order Quantity)is a key term in international jewellery manufacturing. For any brand wishing to launch a bespoke jewellery collection With a manufacturer like SMV Thailand, understanding the MOQ concept is essential.

Behind this term lies a lever for economic optimisation, but also a logistical reality: it defines the minimum quantity of units that a manufacturer agrees to produce for a given model. The MOQ is decisive for production coststhe unit pricesthe stock management and the project profitability.

 

 

Understanding MOQ: definition and challenges

The MOQ corresponds to the minimum manufacturing threshold that a supplier sets to accept the production of a piece of jewellery. This is not an arbitrary figure, but rather a economic balance lever for the workshop: it enables the fixed costs associated with manufacturing (moulds, machine programming, labour time, material losses, quality control, etc.) to be made profitable.

Below this threshold, the unit cost rises sharply and neither the manufacturer nor the brand can maintain a competitive price. On the other hand, respecting the MOQ optimises the overall profitability of the project.

 

Why is the MOQ important in B2B jewellery?

A basis for calculating unit prices

The larger the volume ordered, the higher the unit production cost decreases. This is due to the pooling of certain stages: creation of moulds, purchase of raw materials, production start-up time. In this way, a MOQ enables the manufacturer to guarantee a viable price while maintaining a standard of quality.

At SMV ThailandMOQs vary according to types of productsthe materials (brass, silver, gold), the finishes (micron plating, flash gilding) or the use of natural or laboratory stones.

Logistics and planning

Producing 30, 100 or 500 pieces does not involve the same logistical constraints:

• materials supply
• machine time
• mobilising craftsmen
• quality testing
• packaging

The MOQ guarantees a balance between the time spent on a model and the overall value of the order. It avoids fragmenting production over too many references.

A strategic filter for brands

MOQs force brands to make strategic choices: concentrate their collection on fewer references but in sufficient volumes, test certain designs with an adapted MOQ (in particular via prototypes), or choose a supplier capable of offering small production runs with a good level of quality.

 

What factors influence the MOQ?

The complexity of design

A jewel with multiple components (set stones, hinges, engravings, mixed finishes) will require more time to produce, resulting in a higher MOQ.

Simple models (beads, rings, earrings) can benefit from lower MOQs. At SMV Thailand, a modular approach can sometimes reduce MOQs by standardising certain parts of the jewellery.

The metal used

• Visit silver 925The MOQs are often lower than for gold (which is more sensitive in terms of cost and management).
• Visit brassAlthough MOQs may be slightly higher due to plating constraints, unit costs remain very competitive.

The type of plating or finish

Top-of-the-range finishes (3-micron gold plating, enamelling, mirror polishing) require specific facilities and enhanced quality control. The MOQ is therefore adjusted according to the treatment applied to the jewel.

Customised packaging

The integration of personalised packaging (boxes, pouches, brand cards) also involves a specific MOQ, negotiated according to the constraints of the packaging subcontractors.

 

How can you manage your MOQ intelligently as a brand?

Planning your references

Launching a collection does not mean multiplying the number of models. At the start of a project, it's best to :

• limit the number of references
• offer several sizes or versions (silver / gold)
• play with variations (stones, engravings)

This makes it possible to spread the MOQ over a number of variations while maintaining a coherent line.

Working with a flexible manufacturer

Some manufacturers, such as SMV Thailand, offer Progressive MOQs depending on the phase of the project :

• prototyping 1 to 3 units
• pre-series 20 to 50 units
• production : from 100 units

This logic facilitates the agile development of collections, especially for young brands or those repositioning themselves.

Negotiating partnerships

A MOQ can be adjusted upwards or downwards depending on :

• the length of the partnership
• regularity of orders
• total annual volume

A reliable supplier will be more inclined to adjust its terms and conditions if the brand anticipates its needs.

 

Jewellery prototyping and MOQ: two complementary stages

Before reaching the MOQ for mass production, it is essential to pass through a phase of prototypingwhich allows the brand to :

• test the jewellery design in real-life conditions,
• validate proportions, finishes and renderings (stone, metal, engraving),
• make any technical adjustments.

Le prototype is generally produced individually. At SMV ThailandThis stage is offered at a preferential cost to help young brands launch or develop new lines.

Once the prototype has been validated, production can be launched with a pre-defined MOQ. This process avoids production errors, limits the risk of returns or non-conformity, and secures the final quality of the collection.

 

FAQ : Minimum order quantity (MOQ)

What is the MOQ in the jewellery industry?

The MOQ (Minimum Order Quantity) is the minimum number of units that a manufacturer agrees to produce for a model. It varies according to design, materials, finishes and ancillary services.

What is the average MOQ at SMV Thailand?

It depends on the project, but is generally between 30 and 100 pieces per model, with the possibility of pre-production.

Is it possible to negotiate the MOQ?

Yes, especially if the brand commits to annual volumes or several collections. A manufacturer like SMV Thailand can also offer a MOQ tailored to your launch strategy.

How can I reduce the MOQ for my first collection?

By optimising designs, grouping together common components, and planning variations rather than completely separate creations.

Why are MOQs different from one supplier to another?

MOQs depend on production capacity, the level of quality required, internal costs, and the manufacturer's willingness to work with small or large brands.

What impact does the MOQ have on the cost price of a piece of jewellery?

Le cost price of a piece of jewellery depends directly on the number of units produced. The smaller the order, the more each piece costs to make, because the fixed costs (tooling, machine time, quality control) are spread over a smaller volume. That's why meeting or exceeding the MOQ reduces the cost of production. unit cost and optimise profitability.

How do you choose a good jewellery supplier when you're just starting out?

A jewellery supplier A reliable supplier for an emerging brand needs to offer flexibility in terms of quantities, support with prototyping and consistent quality. SMV Thailand, for example, offers personalised follow-up, progressive MOQs and transparency throughout the production process.

What can I do if my jewellery brand can't reach the MOQ?

A jewellery brand in the launch phase can :

• reduce the number of references,

• offer variations on a central design,

• pool certain parts (chains, base rings),

• negotiate a pre-series.
  SMV Thailand offers specific solutions for young brands.

What ordering conditions should you agree with your manufacturer?

The order conditions These include the MOQ, production deadlines, payment terms, validation of the prototype and quality guarantees. It is essential to formalise these elements in a clear purchase order, especially for international production.

How do production logistics influence the MOQ?

La production logistics includes the management of raw materials, the organisation of workshops, the availability of craftsmen and the delivery schedule. A MOQ makes it possible to rationalise these logistics, avoid losses and optimise manufacturing cycles. It also ensures that production runs smoothly and efficiently.