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    1. Justin_AP is offline

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      #1

      How can I decrease MOQ? - Obtaining lower Minimum Order Quantity

      I’m looking at goods from several suppliers than I’m really interested in; however, the MOQ is prohibitive. Are there certain conditions where a supplier would lower the MOQ? How can I persuade a supplier to decrease MOQ and get a lower minimum order quantity?
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    2. dealsrus is offline

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      #2
      Suppliers generally have established a certain MOQ for good reasons and you most likely won’t be able to persuade anyone to change their MOQ for you. In fact, MOQs are usually set lower than the supplier really needs to meet their profit margin; however, they do understand that most new businesses will not be able to meet a higher MOQ when first trying a product. MOQs are often intentionally set a bit lower to encourage new business.

      It’s worth a shot, though. Depending on your industry, you might be able to work with the supplier to agree to a lower MOQ, especially if you understand what impacts their MOQ.

      Suppliers are usually pretty open to discussing what factors impact their MOQ. If you’ve narrowed your list of suppliers down to two or three, call them up and have a chat about it.

      There are certain universal elements that factor into a supplier’s MOQ and bottom line.


      1. Supplies
      If we are looking at a fabric supplier, for instance, there is most likely a certain amount of fabric the supplier needs to sell in order to meet their quota. With a little creativity, a buyer might be able to meet the MOQ and use the large quantity of fabric over several products they will then produce.

      2. Mixed Orders
      A supplier might not make an allowance for mixed orders apparent in their pricing. A buyer can always ask if a mixed order of several products can make up the MOQ for a single order.

      For example, the athletic shoe production process requires a lot of equipment and employees, so the MOQ for athletic shoes is typically high. Conversely, handmade or specialty shoes take longer to make and have lower MOQs. If you run a shoe store and need 100 pairs of athletic shoes and the MOQ is 200, you could ask for a mixed shipment of specialty and athletic shoes and as for the MOQ of the specialty shoes.

      3. Stock
      When a fabric manufacturer or athletic shoe manufacturer begins production on a product, they must use certain amounts of fabric or materials to meet their unit cost. If a buyer is willing to use stock fabric or stock leather on a shoe, the supplier might be willing to accept a lower MOQ.

      However, buyers should know that this process results in more variation in color, meaning the fabric you use to produce a shirt might be different each time you order production. The quality and quantity might vary as well.

      4. Charges
      Most suppliers will agree to a lower MOQ, but will charge the buyer a higher price per unit. This makes up for their loss on production. If a buyer has his heart set on this supplier, it might be worth absorbing the extra charge until you establish a relationship with the supplier. Once established, a supplier might be much more amenable to compromising.

      Additionally, a buyer should consider the shipping charges of a lower MOQ, as compared to the standard MOQ plus shipping. By crunching the numbers, the buyer might find that it makes more sense to order the standard MOQ. For example, a lower-than-MOQ order might have to be shipped via a 20’ container, whereas the standard is shipped via a 40’ container. You could be surprised at the cost difference.

      Taking these five factors into consideration, buyers who take the time to find out motivating factors behind a supplier’s MOQ and use creativity could potentially reach an agreement to decrease MOQs. Flexibility and compromise are critical factors here.
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    3. Josh_TheHawk is offline

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      #3
      One long shot option to consider:

      If a buyer is absolutely certain about a supplier’s product and they just don’t want to look elsewhere, it’s possible for a supplier to consider combining the buyer’s lower MOQ with another customer who desires the same thing but who is also requesting a lower MOQ. This would, of course, mean lots of communication between the buyer and the supplier. The buyer would be putting their eggs in one basket and hoping for another customer who wants the same product. Finding another buyer could take anywhere from a week to a month or two, so if you don’t mind waiting, this is an option. This might not work with fabric, but might work with a different product, like computer parts or electronics.

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