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For new brands & first-time founders

Budget Based Sourcing Guide For New Brands

Your budget decides what kind of product, MOQ, and manufacturer you can realistically work with. This guide shows you how to plan costs, work with low MOQ manufacturers, and launch without overstretching your cash.

  • Understand how much you really need for your first product run
  • Learn what to expect from low MOQ manufacturers
  • See sample budgets for different industries and launch sizes
  • Learn how Sourcy helps you stay within budget
Budget Thermometer

Typical first order budget ranges

Starter$3,000 – $7,000
Growing$7,000 – $20,000
Aggressive Launch$20,000+

Example ranges only. Actual costs depend on product type, country, and terms.

Why Budget Planning Is Critical When You Start A Brand

Most founders jump straight to sourcing without deciding what they can afford. Your budget affects which categories you can enter, whether you can work with low MOQ manufacturers, and how many SKUs you can launch.

Category Choice

Some categories require more capital upfront for tooling, compliance, or minimum orders.

MOQ & Factory Type

Low MOQ manufacturers offer flexibility but often at higher unit costs.

Number of SKUs

Your budget determines how many variants you can realistically launch at once.

Sample Budget Levels And What You Can Expect

These three example tiers help you see what's realistic for a first order. All numbers are illustrative.

Lean Test Launch

1–2 SKUs

$3,000 – $7,000

Simple category like accessories, basic apparel, or home items. Focus on testing demand.

  • Sampling and product development
  • Minimal or existing tooling
  • Small first order at low MOQs
  • Basic packaging and branding

Usually means working with low MOQ manufacturers who accept smaller runs at higher unit prices.

Focused Launch

2–5 SKUs

$7,000 – $20,000

One category with better packaging, more customisation, stronger brand presence.

  • Multiple sampling rounds
  • Modest tooling or development
  • Substantial first order with reasonable MOQs
  • Branded packaging and basic QC

The sweet spot for many serious new brands.

Aggressive Launch

5+ SKUs

$20,000+

Multi-SKU launch for brand aggregators or well-funded brands.

  • Complex development and tooling
  • Bigger MOQs with better unit economics
  • Stronger QC and custom packaging
  • Content creation samples

Best unit economics but requires significant upfront capital.

How Budget Influences MOQ And Product Choices

Your budget decides which categories are realistic. Here are examples to illustrate the trade-offs.

Basic Fashion

Medium Budget

200–500 units/style

Low MOQ manufacturers exist but expect higher unit cost

Accessories

Budget Friendly

100–300 units/design

Often most budget-friendly for first-time brands

Beauty & Skincare

Higher Budget

500–2,000 units/SKU

Requires lab work and compliance

Home & Living

Medium Budget

200–1,000 units

Packaging and shipping volume affect total cost

Packaging Only

Higher Budget

1,000–5,000 units

Low unit cost but higher MOQs due to printing

*Low MOQ manufacturers help you start smaller, but you'll often pay more per unit. Higher MOQs mean lower unit costs but require more upfront cash. A good budget sourcing guide shows where the realistic middle point is.

What Your Budget Really Needs To Cover

Ex-factory price is only one part. Your budget needs to cover several cost layers.

Total Landed Cost Breakdown

Tooling
Production
Freight & Duties
Sampling (10%)
Tooling (15%)
Production (45%)
QC (10%)
Freight & Duties (20%)

Sampling

  • β€’ Sample fees
  • β€’ Sample shipping
  • β€’ Refinement costs

Tooling

  • β€’ Moulds for plastic/metal
  • β€’ Printing plates
  • β€’ Pattern development

Production

  • β€’ Unit cost Γ— MOQ
  • β€’ Custom colours/finishes

QC

  • β€’ Inspections
  • β€’ Rework before shipment

Freight & Duties

  • β€’ Sea or air freight
  • β€’ Duties and taxes
  • β€’ 3PL fees

Sample Budget Scenarios For Different Industries

Accessories Brand

$5,000

Caps & Tote Bags

Small test launch on ecommerce

Sampling
$500–800
Production
$2,000–3,000
Packaging
$300–500
Freight & Buffer
$1,000–1,500

Works best with low MOQ manufacturers accepting 100–200 units per design.

Beauty Brand

$12,000

Cleanser & Moisturiser Set

Launch DTC and test marketplaces

Formula & Sampling
$1,500–2,500
Testing & Compliance
$1,000–2,000
Production
$5,000–6,000
Packaging & Freight
$2,500–3,000

Requires manufacturers that understand your regulatory market.

Home & Living Brand

$8,000

Stackable Storage Boxes

Test on marketplace and social commerce

Sampling & Tooling
$1,500–2,000
Production
$4,000–4,500
Packaging & Inserts
$500–800
Freight & Duties
$1,000–1,500

Basic mould tooling is the main upfront cost.

*Disclaimer: These are rough examples to help you plan. They are not quotes and actual costs may vary based on product specifications, supplier terms, and market conditions.

Financial Signals To Watch When Choosing A Supplier

Budget also shows up in how suppliers quote, structure MOQs, and handle payments.

Red Flags

  • One quote far lower than all others with no explanation
  • 100% upfront payment required for first order
  • Vague or shifting answers on what's included
  • Hidden add-ons that appear late in the process

Green Flags

  • Realistic unit prices compared to other quotes
  • MOQ flexibility for first orders with a scale plan
  • Standard payment terms (30% deposit, 70% before shipment)
  • Clear breakdown of what ex-factory price covers

How Sourcy Helps You Stay On Budget

Work through this guide alone, or let Sourcy handle the heavy work so you can focus on your brand.

1
Budget & Idea
2
Sourcy Evaluates
3
Receive Quotation
4
Samples & Quotes
5
Confirmed Order

From budget to boxes at your warehouse

Connect you with low MOQ products

Find factories open to smaller first orders so you can test demand without overcommitting.

Transparent quotes and cost breakdowns

See how sampling, production, QC, and logistics add up to the full landed cost.

Realistic MOQ and budget alignment

We'll tell you when budget doesn't match your product idea and suggest alternatives.

End-to-end management

From supplier search to QC and shipping, simplified so you don't have to learn everything at once.

Want A Budget Aligned Sourcing Plan For Your First Product?

Share your product idea and budget range. We'll recommend realistic options with low MOQ manufacturers where possible so you can launch with confidence.

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    Budget Based Sourcing Guide for New Brands | Low MOQ Manufacturers | Sourcy