• Kristen

5 Common Words Contract Manufacturers Use


Contract manufacturers use certain words that are common to use in the industry. when talking to a contract manufacturer, you might have ran across some of these common words.

In this article, I'll describe these 10 top common words you'll come in contact with when you contact a manufacturer.

1. MOQ:

Minimum Order Quantity (MOQ). Whether talking filling, labeling, or packaging, this abbreviation is used for manufacturers to describe what their minimum is for ordering from them.

2. Price ($) /M:

Price per 1,000. This means price per 1,000 pieces. When talking large volume such as 10,000 to even 1,000,000, Price/M breaks down in chunks what it costs for each 1,000 pieces of that particular product.

3. Private Label:

Known as "phantom brands," is a formula provided from a company to offer to another company. This can be for many industries and not limited to just cosmetics or beauty products.

4. Time To Market:

The length of time it takes for a finished product to enter the market. Another similar term, "time to volume," means the time length for prototype into full scale production.

5. BOM:

Bill of Materials. This term is used to describe the assembly of work a contract manufacturer needs in order to make your product. This list is handed from the customer to the contract manufacturer so the manufacturer understands what items are expected to create a finished product.

Have you ran into these words before? Did we miss a word that you have ran into when talking to a manufacturer? We'd like to hear from you. Let us know!

#ContractManufacturer #ContractManufacturingterms #Commonwordscontractmanufacturing #understandingcontractmanufacturing

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