What is minimum order quantities (MOQ)?

MOQS of T-shirt is 50 pieces for each size.

MOQS of other is 100 pieces for each size.

You know, our brand might have a different idea about how many units we want or how often we need to reorder, and it might not be the same as what the manufacturer’s minimum order quantity (MOQ) is.But, there are actually some good things about MOQs, and there are also ways to make them fit what we need.

In this article, we’re gonna give you a general idea of what minimum order quantity is all about.We’ll also check out some really important things to think about when you’re trying to figure out what the MOQ requirements are. 

Why do company use minimum order quantities?

Cost reduction

You see, when company set up minimum order quantities (MOQs), it allows them to buy raw materials in large amounts.And usually, buying in bulk is cheaper.If a supplier’s production process is set up for making a lot of stuff at once, like in mass-production, they might not have to pay a whole lot more in labor costs for big orders compared to small ones.

Some company are really smart.They don’t even buy the raw materials until a customer has actually made a purchase.This way, they don’t waste money making things that nobody wants to buy.And because the materials and the final products aren’t just sitting around in a warehouse waiting to be sold, the supplier doesn’t have to pay as much for storing them.So, their holding costs are lower.

Higher profits

MOQs are also great for company to make sure they make a profit every time they produce something.Over time, suppliers might change the prices of their goods and the MOQs.They do this to make their profit margins bigger or smaller, depending on what’s going on in the market and with their business.

You know, a minimum order quantity is basically the least number of things a company will sell in one go.Let’s say there’s a business with an MOQ of 10. If a customer wants to order from them,they’ve got to buy at least 10 of whatever it is. The business won’t take the order otherwise.

Businesses set these MOQs so they can pay for all the costs that come with making or selling the stuff and still make some money. It’s like a way for them to make sure they don’t end up losing out when they sell their products.

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