The Impending Death of the Minimum Order

Ben Stern
Sep 26th, 2024

The story's always been the same: "Minimum order? 10,000 units." And just like that, countless great products died before they ever had a chance to live.

For decades, this has been manufacturing's cruelest catch-22. You need sales to prove your product works, but you need to order thousands of units before you can make your first sale. It's a tough game  to beat, forcing founders to either bet their entire budget on inventory or give up before they start.

But something interesting is happening: The minimum order (MOQ) is quietly dying. Here's why this changes everything:

The New Reality

AI systems like Tenkara are rewriting these rules by solving the core problem: matching production capacity to demand at any scale.

Here's what's actually happening:

- Factories' idle time is being identified and sold in smaller blocks
- Multiple brands' orders are being intelligently bundled together
- Setup costs are being spread across multiple small runs
- Production scheduling is becoming dynamic, not static

What This Means for Product Company's 

Risk is reduced when you can test products in small batches:

- You can launch multiple variants simultaneously
- Market feedback comes before major inventory commitments
- Cash isn't locked up in warehouses
- Failed products become learning experiences, not company-killing events

When anyone with a good idea can test it without betting their life savings, we all win.

Welcome to the age of small batches. Big minimums are dying. And it's about damn time.