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!