Course contents
Practitioner · Course 1: Enquiry to Quotation · Lesson 3 of 5

Setting a quotation's own validity, MOQ and lead time terms

Level: PractitionerTime: 45 minutesOrder used: Order A's own fixed figures, applied to a domestic stock enquiryTool: Enquiry-to-quotation tracker
This lesson is for a merchandiser or factory owner setting the terms that sit around a quotation's price. No earlier lesson is needed beyond lesson 1.2. Figures are teaching figures; the case is Cedar & Co.'s domestic stock-programme enquiry to Delta Garments.
FactoryDelta Garments, domestic Make to Stock line
BuyerCedar & Co., domestic brand, 12 shops
EnquiryBasic T-shirt for stock, 6,000 pieces, repeat style
Terms to setQuotation validity, minimum order quantity, and lead time
What this lesson coversSetting the terms that sit around a quotation's price
ToolEnquiry-to-quotation tracker
02Opening

This page teaches a merchandiser how to set a quotation's validity, minimum order quantity and lead time, not only its price

This page teaches a merchandiser or factory owner how to set a quotation's validity, minimum order quantity and lead time, not only its price. This lesson mainly teaches decision: which terms to attach to a price, and how each one protects the factory or informs the buyer. At work, a price alone is not a complete quotation. A buyer who receives only a number has no way to know how long that number holds, how few pieces it can order, or how soon the goods can arrive.

Delta Garments' domestic Make to Stock line supplies Cedar & Co., a domestic brand restocking its own shops from its own sales forecast. Cedar & Co. sends a repeat enquiry for a basic T-shirt style it already stocks, 6,000 pieces, asking for a quotation. Mona has already built the costed price from the confirmed specification, the skill taught in lesson 1.2. Now she must decide three more things: how long the quoted price stands before it must be requoted, the smallest quantity Delta Garments will accept, and how many weeks the order will take from confirmation to delivery. This lesson teaches how to set each of these three terms.

03Before you start

What you need, and what this lesson does not cover

You need: lesson 1.2, building a costed quotation, since this lesson adds terms around a price already built.

By the end of this lesson you can:

  • state what a quotation's validity period protects the factory against;
  • set a minimum order quantity that covers the factory's own fixed costs per style;
  • build a lead time from an order's own production stages;
  • explain why a Make to Stock repeat order can carry a shorter lead time than a new Make to Order style;
  • recognise when a buyer's request falls below a stated MOQ or beyond a stated validity period.

Not covered here: reading and confirming the enquiry itself (lesson 1.1); building the costed price these terms sit around (lesson 1.2); presenting the finished quotation to the buyer (lesson 1.4); tracking terms across many quotations at once (lesson 1.5).

04Key terms

Words you will meet in this lesson

TermMeaning
Quotation validityThe length of time a quoted price stays fixed before the factory can require it to be requoted.
Minimum order quantity (MOQ)Minimum order quantity; the smallest quantity a factory will accept for one style at the quoted price.
Lead timeThe number of weeks from order confirmation to the goods being ready, built up from the order's own production stages.
Repeat styleA style a factory has produced before for the same buyer, letting some production stages move faster than a first-time style.
Stock programmeA Make to Stock arrangement where a buyer restocks its own shops from its own sales forecast, rather than from one large export order.
Price validity dateThe specific calendar date after which a quoted price is no longer guaranteed, stated on the quotation itself.
05Teaching
The rule

A complete quotation states validity, MOQ and lead time alongside price, since each protects a different risk

A price alone leaves three risks unmanaged: the risk that fabric or other input costs rise before the buyer confirms, the risk that a factory accepts a quantity too small to be worth the setup cost, and the risk that the buyer expects delivery sooner than the factory can actually produce. Quotation validity manages the first risk, MOQ the second, and lead time the third. A complete quotation states all three next to the price, not as separate documents sent later.

Validityprotects the price MOQprotects the setup cost Lead timeprotects the schedule
Three terms sit around a quotation's price, and each manages a different risk. A price with no terms attached leaves all three risks unmanaged.
What you meet in real life

The shapes validity, MOQ and lead time take across export, domestic, MTO, MTS and hybrid orders

What can differThe shapes you will meetWhy it matters
Export MTO, new style, volatile fabric priceAn export MTO quotation for a new style, where fabric price can move quickly, often carries a short validity of 15 to 30 days, and a lead time built fully from scratch: approvals, fabric, sewing, and shipping.A short validity protects the factory if fabric costs rise before the buyer confirms; a full lead time is needed since nothing about this style has been produced before.
Domestic MTS, repeat stock styleCedar & Co.'s repeat stock enquiry can carry a longer validity, often 60 days, since the style and fabric are already known and less likely to move in price, and a shorter lead time, since fabric sourcing and pattern approval are already settled from past runs.A repeat style removes the approval and pattern stages from the timeline, so a domestic stock buyer reasonably expects a faster turnaround than a brand-new export style.
Hybrid order, MTO base plus MTS top-upA buyer combining a confirmed MTO base quantity with an MTS top-up option often receives one MOQ for the base order and a separate, usually lower, MOQ for each top-up, since the top-up reuses an already-approved specification.Treating the top-up MOQ the same as a brand-new style's MOQ would needlessly turn away small, low-risk repeat business the factory could otherwise accept easily.
Small buyer, first order, no historyA small new buyer requesting a very small first quantity is often quoted a higher MOQ than an established buyer, or a price that only holds above a stated minimum, since a small first order barely covers the fixed setup cost of a new style.Without a stated MOQ, a factory risks accepting a quantity too small to be profitable, or having to explain a much higher per-piece price after the fact.
The case we follow

Cedar & Co.'s repeat stock enquiry lets Delta Garments set a longer validity and a shorter lead time than a new export style would need

Cedar & Co. sends its repeat enquiry for 6,000 pieces of a basic T-shirt style it has stocked before, using the same 180 GSM single jersey fabric as Order A. Since the style, fabric source and pattern are already approved from earlier runs, Mona sets the quotation's validity at 60 days, longer than the 30 days she would set for a brand-new export style, because the fabric price for this established style moves less over time and Cedar & Co. does not need to confirm as quickly.

TermCedar & Co.'s repeat stock quotationA comparable new export MTO style
Validity60 days30 days
MOQ2,000 pieces per style5,000 pieces per style
Lead time9 weeks (approvals skipped)16 weeks (full timeline, as Order A)

Cedar & Co.'s order of 6,000 pieces sits comfortably above the 2,000-piece MOQ Mona sets for this repeat style, so the quotation can proceed without needing to raise the price for a small quantity.

The worked number

Building the lead time for Cedar & Co.'s repeat stock order by removing stages already settled from earlier runs

Order A's full export timeline runs 16 weeks: approvals 2 + fabric 5 + sewing 2 + inspection, packing and documents 1 + shipping 4 + warehouse and distribution 2 (docs/02 section 7). Cedar & Co.'s repeat stock order removes the 2-week approvals stage, since the style is already approved, and removes the 4-week export shipping stage and the 2-week warehouse and distribution stage, since it is a domestic order collected locally rather than shipped by sea.

16 - 2 = 14 weeks after removing the already-approved pattern stage
14 - 4 = 10 weeks after removing export sea shipping
10 - 1 = 9 weeks after replacing 2 weeks of warehouse and distribution with 1 week of local domestic delivery
Lead time in weeks: Order A's export timeline vs. Cedar & Co.'s repeat stock orderOrder A: 16 weeksCedar & Co.: 9 weeks
Cedar & Co.'s repeat stock order takes 9 weeks, 7 weeks shorter than Order A's full 16-week export timeline. Removing already-settled stages, not rushing the remaining ones, creates the difference.
The method

Four steps to set a quotation's validity, MOQ and lead time

  1. Set validity from how quickly the price's own cost elements can move, shorter for a volatile fabric or a new style, longer for an established, stable repeat style.
  2. Set MOQ from the factory's own fixed setup cost per style, high enough that even the smallest accepted order still covers it.
  3. Build lead time from the order's own real production stages, removing only stages genuinely already settled, such as an approved pattern, never removing a stage the order still needs.
  4. State all three terms on the quotation itself, next to the price, not in a separate message the buyer might miss.
The trap

A common mistake is quoting the same lead time for a repeat stock style as for a brand-new export style

A common mistake is quoting the same 16-week lead time for a repeat stock style as for a brand-new export style, simply because that is the number a merchandiser is used to writing. A repeat style genuinely can move faster, since approvals and pattern work are already settled; quoting the longer timeline anyway either loses the order to a competitor with a more accurate quotation, or forces the factory to explain later why the goods arrived weeks earlier than promised.

This mistake costs real business when it goes unnoticed. Cedar & Co., restocking its shops from its own sales forecast, needs goods on a schedule that matches when its shelves actually run low; a quotation that overstates the lead time by 7 weeks risks Cedar & Co. placing the same repeat order with a different domestic factory that quotes more accurately. Building the lead time from the order's own real stages, rather than reusing a standard export figure, costs nothing extra and keeps the quotation competitive.

06In plain words

A quotation is not finished once it states a price. Three more terms belong with it: how long the price stands before it needs to be requoted, the smallest quantity the factory will accept, and how many weeks the order takes from confirmation to delivery. A price that can change quickly needs a shorter validity; a small order needs a stated minimum so it still covers the factory's setup cost; and a repeat style that skips steps already done before can honestly promise a shorter lead time than a brand-new style. Stating all three next to the price, rather than leaving them unclear, protects the factory and lets the buyer plan properly.

07Quick check
  • A complete quotation states validity, MOQ and lead time alongside the price.
  • A new, volatile-fabric style usually gets a shorter validity, commonly 15 to 30 days; a stable repeat style can get 60 days or more.
  • MOQ is set high enough to cover the factory's own fixed setup cost per style.
  • Lead time is built from the order's own real production stages, not copied from a different order type.
  • A repeat stock style can honestly skip an approvals stage a new style still needs.
  • Never quote a shorter lead time than the order's real remaining stages actually allow.
08Workplace scenario

Cedar & Co. asks for a smaller first trial quantity of 1,500 pieces on the same repeat style, below the quotation's stated MOQ

Cedar & Co., pleased with the 6,000-piece quotation, later asks whether Delta Garments can also supply a smaller first trial batch of 1,500 pieces of the same style, to test a new shop location before committing to the full quantity.

  • The standing quotation states an MOQ of 2,000 pieces for this repeat style.
  • Cedar & Co.'s new request is for 1,500 pieces, 500 below the stated MOQ.
  • The style and fabric are already approved from the 6,000-piece order.
  • Cedar & Co. is an established, long-standing domestic buyer.

Should Mona quote 1,500 pieces at the same per-piece price as the 6,000-piece order, or does the smaller quantity need its own terms? Decide before opening the answer.

Show decision

The smaller quantity needs its own terms, most likely a higher per-piece price, rather than the same price applied below the stated MOQ. 1,500 pieces sits below the quotation's own stated 2,000-piece MOQ.

First, the MOQ exists because a smaller order still carries close to the same fixed setup cost as the 2,000-piece minimum, so spreading that same fixed cost over only 1,500 pieces raises the true cost per piece.

Second, since Cedar & Co. is an established buyer and the style is already approved, Mona can reasonably offer the 1,500-piece trial at a modestly higher per-piece price rather than refusing it outright, explaining that the increase reflects the same fixed cost spread over fewer pieces, not a change in the underlying fabric or making cost.

09What it costs

What accepting a below-MOQ order at the standard price could cost Delta Garments on its fixed setup cost

If the fixed setup cost for this repeat style is about USD 300, spread over the quotation's stated 2,000-piece MOQ, it adds roughly USD 0.15 per piece.

300 ÷ 2,000 = USD 0.15 per piece, the setup cost built into the MOQ price

Spread instead over Cedar & Co.'s requested 1,500 pieces, the same fixed cost adds closer to USD 0.20 per piece.

300 ÷ 1,500 = USD 0.20 per piece if the same fixed cost is spread over the smaller quantity

Quoting 1,500 pieces at the original price without adjustment would absorb an extra USD 0.05 per piece, USD 75 across the small order, out of the factory's own margin rather than the buyer's price. Stating the adjustment plainly costs nothing and keeps the factory's margin intact.

10Working template

Enquiry-to-quotation tracker: recording validity, MOQ and lead time alongside each quotation's price

Open the course workbook's Terms sheet. For each quotation, enter the validity period, the MOQ, and the lead time built from the order's own production stages, alongside the price already recorded in the Quotation Build sheet.

Download the full working sheet, with Cedar & Co.'s repeat stock quotation already filled in, from the link on this course's page.

Download the Enquiry-to-quotation tracker (Excel)

11Check yourself

1. What risk does a quotation's validity period specifically manage?

2. Why can Cedar & Co.'s repeat stock order carry a shorter lead time than Order A's full 16-week export timeline?

3. A buyer requests a quantity below the quotation's stated MOQ. What is the most accurate response?

12Glossary
ENARFRTRMeaning
Quotation validityصلاحية عرض السعرValidité du devisTeklif geçerlilik süresiThe length of time a quoted price stays fixed before the factory can require it to be requoted.
Minimum order quantityالحد الأدنى لكمية الطلبQuantité minimale de commandeMinimum sipariş miktarıMinimum order quantity; the smallest quantity a factory will accept for one style at the quoted price.
Lead timeالوقت الإجمالي للتنفيذDélai de productionTeslim süresiThe number of weeks from order confirmation to the goods being ready, built up from the order's own production stages.
Repeat styleموديل متكررModèle répétéTekrar modelA style a factory has produced before for the same buyer, letting some production stages move faster than a first-time style.
Stock programmeبرنامج المخزونProgramme de stockStok programıA Make to Stock arrangement where a buyer restocks its own shops from its own sales forecast, rather than from one large export order.
Price validity dateتاريخ انتهاء صلاحية السعرDate de validité du prixFiyat geçerlilik tarihiThe specific calendar date after which a quoted price is no longer guaranteed, stated on the quotation itself.
13Next

Lesson 1.4: Presenting a quotation and answering a buyer's first questions on it

You now know how to set a quotation's validity, MOQ and lead time. The next lesson presents a finished quotation to a buyer and answers the questions it usually raises first. Back to the course map

14Ladder

RecognizeName the three terms, validity, MOQ and lead time, that sit around a quotation's price.
ConnectSee how a repeat stock style honestly shortens a lead time by removing settled stages.
CompareTell an MOQ set for a new style apart from one set for a proven repeat style.
DecideChoose to adjust price, not just refuse, when a request falls below the stated MOQ.