How to negotiate MOQ?
Posted on February 16, 2021
If you are ooking for a clothing manufacturer for the first time, you are going to quickly learn about minimum order quantities (MOQ). It’s not uncommon for a manufacturer to require a commitment to purchase hundreds or even thousands of units for your first order depending on the product and manufacturer.
MOQmake it difficulty when you have limited funds or want to start small brand and test the market before making larger purchases. The good thing is that MOQ are almost always negotiable.
Before you negotiate, understand why the supplier has imposed a minimum. Is it because there’s a lot of work upfront? Or maybe it’s because they prefer to work with larger buyers.
Understanding the reasons behind the minimum will help you better understand their position and allow you to negotiate and propose to best counter offer.
After you have a better understanding of your supplier’s position, you can offer a lower order quantity. Compromises can include giving the supplier a deposit for a larger order, but just producing small amounts at a time or paying a higher price per unit.