Why is the MOQ of a certain product 3000?

The reason why the Minimum Order Quantity (MOQ) of a product is set to 3000 is usually related to several factors:

Production cost:

Economies of Scale: Fixed costs in the metal box manufacturing process (e.g., tooling, machine commissioning, raw material purchases, etc.) may seem excessive in small lot production. By setting a higher minimum order quantity, manufacturers can spread these fixed costs over more products, thus reducing the cost per product.

Efficiency: Mass production increases the efficiency of the production line, reducing waste and idle time. It is more in the interest of the tin box manufacturer to produce in large quantities and the production process is smoother.

Raw material purchase:

Manufacturers usually need to purchase raw materials in bulk in order to obtain a lower unit price. If the order quantity is too small, it may not be able to meet the supplier's minimum order quantity, or the cost of raw materials will be too high, affecting the final pricing of the product.

Inventory Management:

If the order volume is small, it may lead to a backlog of finished products and increase storage costs. In order to ensure reasonable inventory management and liquidity, tin box factory will want the order volume to reach a certain scale.

Customization requirements:

For custom tin box production, manufacturers typically set a higher MOQ to account for the additional costs and complexities involved in customization, such as unique colors, designs, and packaging.

Market positioning and brand strategy:

Some brands and manufacturers may use a higher MOQ as a threshold to enter their supply chain to ensure that their partners have a certain market power and good faith.

Therefore, the MOQ set at 3000 is usually a decision made by the manufacturer after comprehensive consideration of production costs, raw material procurement, inventory management, market positioning and other factors.