The supplements industry is flourishing. In 2023, the industry was valued at nearly $57 billion, and it’s forecasted to reach $239 billion by 2028. This presents an excellent opportunity for small businesses looking to launch supplement brands. However, starting a supplement brand from scratch can be daunting, especially with limited resources.
One of the biggest you’ll have to overcome is finding a supplement manufacturer that accepts low minimum order quantities (MOQs). In this guide, we’ll explore how you can find a supplement manufacturer that accepts low MOQs, enabling you to grow your business without significantly impacting your cash flow.
What Are MOQs in Supplement Manufacturing?
Have you considered launching your supplement brand but are worried about the initial investment? This is where minimum order quantities (MOQs) come into play. MOQs are the smallest batch size manufacturers are willing to produce.
Basically, MOQs are the minimum number of tablets, capsules, gummies, or other supplement types producers can produce in a single production run.
Why Do Supplement Manufacturers Set MOQs?
Supplement manufacturing involves various steps, including sourcing ingredients, developing formulations, and testing finished products, to name but a few steps. Supplement manufacturers set MOQs to primarily streamline production. Here are some reasons why supplement manufacturers set MOQs:
- Control production costs: Creating a production line for a new supplement requires time, equipment, and resources. Spreading these costs over a larger number of units makes production more cost-effective.
- Maintain profitability: Manufacturers need to cover their fixed costs and stay profitable with every production run. Setting MOQs helps manufacturers maintain a healthy profit margin.
- Operational efficiency: Manufacturers typically schedule production runs in advance. Setting MOQs allows them to plan efficiently and avoid disruptions.
Disadvantages of High MOQs for Small Businesses
While high MOQs benefit manufacturers, they can be a significant hurdle for small businesses. Here are some of the challenges they can pose:
- High initial investment: Large MOQs require a significant financial investment right from the start, which can strain your budget and cash flow. This financial burden can limit your ability to invest in other areas, such as product development, branding, and marketing.
- Excess inventory: Large upfront orders can result in excess inventory, especially if your product doesn’t sell as quickly as anticipated. Excess inventory can take up valuable storage space, tie up capital, and put your product at risk of expiry or obsolescence.
- Reduced flexibility: The supplement industry is dynamic. High MOQs limit your ability to capitalize on market trends or adjust your product based on consumer feedback. This can result in reduced sales or make it tough to keep up with competitors.
Benefits of Working With a Supplement Manufacturer With Low MOQs
Partnering with a supplement manufacturer with low MOQs can offer numerous advantages, particularly if you run a small business with limited resources. Here are some of the key benefits of working with a manufacturer that accepts small or low minimums:
Reduced Upfront Investment
This is arguably the biggest benefit. Low MOQs allow you to invest a minimal amount of capital upfront. This can allow you to get your business up off the ground quickly without worrying about how to raise funding.
Minimized Inventory Risk
Partnering with a supplement contract manufacturer that accepts low minimums can ensure you aren’t stuck with excess inventory you can’t sell. This can reduce the risk of dead stock and free up precious storage space.
Increased Flexibility
Low MOQs offer the flexibility to experiment with different formulas and product variations. For instance, suppose you have a vitamin-liquid supplement formula, but you’re uncertain which flavor will resonate with your target audience.
Low MOQs allow you to produce small batches of multiple flavors and gather consumer feedback. Subsequently, you can refine your product and produce larger batches based on consumer feedback.
Improved Cash Flow
Having to buy a lot of products at once can make it difficult for you to have enough money on hand. This can prevent you from making enough sales to cover your costs. As a result, it may be challenging for you to expand or improve other aspects of your business.
Choosing a private label supplement manufacturer with low minimums can help you save money. This way, you can focus on important parts of your business like product development, branding, and marketing.
Accelerated Product Launch
Shorter production runs often result in faster lead times. Low MOQs allow you to get your products to stores quicker, capitalize on market trends, and capture early adopters. This can give you a significant edge over competitors with longer production runs.
How to Find a Low MOQ Supplement Manufacturer
Finding a low MOQ supplement supplier can seem impossible, as many manufacturers offer high MOQs. However, with the emergence of more small businesses providing dietary supplements, many manufacturers are offering low minimums.
But how can you find them? Here’s a step-by-step guide on how to find a low MOQ supplement manufacturer:
Identify Your Needs
First, identify the types of supplements you want to produce, the ingredients required, and your desired MOQ. This will allow you to communicate your expectations with potential manufacturers and choose a suitable one.
For instance, if you want to produce a liquid vitamin formulation targeting athletes, you’ll want to partner with a low MOQ supplement manufacturer with experience producing performance-enhancing liquid formulations.
Research and Shortlist Potential Manufacturers
Conduct rigorous research to find supplement manufacturers that accept low MOQs. Unsure where to look? Here are some places where you can find suppliers that accept small or low minimums:
- Online directories: Several online directories specialize in connecting small businesses with supplement manufacturers. Use these directories to find manufacturers that offer low minimums.
- Industry publications: Industry magazines focusing on the supplement industry often feature articles and advertisements from supplement manufacturers. Look for a supplement company that highlights their low minimum capabilities.
- Trade shows: Attending industry trade shows offers an excellent opportunity to connect with potential manufacturers and directly inquire about their MOQ requirements.
Evaluate Supplement Manufacturers
Once you’ve shortlisted several manufacturers offering low MOQs, you’ll need to vet them. Here are some key factors to consider when assessing manufacturers:
- Experience: Look for a manufacturer with experience working with small businesses, preferably one that produces the supplements you want to offer consumers.
- Reviews and testimonials: Check out the company’s reviews and testimonials to assess its reputation.
- Certifications: Look for a manufacturer with relevant certifications, such as the Good Manufacturing Practice (GMP) or the USDA Organic Certified, as these certifications demonstrate a commitment to high-quality production standards.
- FDA-Compliance: Choose a manufacturer with an FDA-registered facility to ensure your supplements comply with FDA regulations.
Request Quotes
Reach out to shortlisted manufacturers and request for quotes. When reviewing the quotes, pay close attention to the pricing structure, MOQ requirements, and additional costs, such as supplement packaging, labeling, and order fulfillment.
Communication and Customer Service
Evaluate the manufacturer’s responsiveness and communication style during the preliminary discussions. Ideally, you’ll want to work with a manufacturer that promptly responds to your queries via your preferred communication channels. Also, you’ll want to partner with a manufacturer willing to accommodate your changing needs, depending on demand fluctuations.
Negotiate Terms
You can seal the deal once you find a low MOQ manufacturer that fulfills your requirements. However, before you sign on the dotted line, ensure you negotiate for favorable terms. Discuss pricing, payment terms, lead times, and other relevant details.
Here are some strategies you can use to negotiate for favorable terms:
- Showcase your vision: Highlight your brand’s long-term vision and plans to scale production in the future as demand grows.
- Offer prepayment options: Consider offering to pay for goods before receipt of your initial order. This can encourage the manufacturer to accept your low minimums.
- Explore partnerships: Consider partnering with small businesses like yours to combine orders and negotiate for even lower MOQs and better payment terms.
Hire a Supplement Manufacturer That Offers Low MOQs
Starting a supplement business from the ground up can be challenging, especially with limited resources. But it doesn’t have to be. With the help of a supplement manufacturer that accommodates low MOQs, you can establish your supplement business without breaking the bank or putting a strain on your cash flow.
At Matsun Nutrition, we have over 30 years of experience helping small businesses find their footing in the competitive supplements industry. With an incredibly low MOQ of just 12 bottles, we make it easy for small businesses to start selling supplements.
Contact us today for a free quote or to learn more about how we can help you launch a thriving supplements business.
Frequently Asked Questions (FAQs)
The MOQ range varies from one low MOQ supplement manufacturer to another, depending on the supplement type and formula complexity. At Matsun Nutrition, we offer an incredibly low MOQ of just 12 bottles.
Look for manufacturers with FDA-registered facilities and certifications like the Good Manufacturing Certificate (GMP), which indicates a commitment to high-quality production standards.
Many low MOQ manufacturers cater to growing businesses. Look for manufacturers willing to accommodate your growing production needs as demand for your product increases.
Many low MOQ manufacturers charge slightly more per unit than those with high MOQs. However, low MOQ manufacturers allow you to get up and running with less capital, offer greater flexibility, and reduce the risk of getting stuck with excess inventory. Additionally, low MOQ manufacturers allow you to get your products to market faster.
Some manufacturers may allow you to visit their facilities physically, while others may offer virtual tours. This can be an excellent way to meet the team in person and assess their facilities firsthand.
