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Why Do Supplier’s Exists Minimum Order Quantity? When you’re planning to establish new business with the manufacturing process, new makers are often surprised at how much Minimum Order Requirements (MOQs) impact their business plans. MOQ stands for “Minimum Order Quantity”. A minimum order quantity is the lowest number of units of an item that a supplier or factory is willing to produce in an order. MOQ is a supplier’s Minimum Order Quantity which is defined by the minimum number of units they’re willing to produce (or sell) at one time. Why Supplier’s must set an MOQ requirement and what is the reason behind MOQ? The purpose of minimum order quantities is to allow suppliers to increase their profits. This is especially true for Chinese manufacturers or other low-cost manufacturing countries that tend to have relatively high quantity requirements. Such factories often have a hard time making good profit margins which may be as low as 3 to 4% according to Chinaimportal.com, so they must increase their minimum order quantity to reduce the risk associated with each order. Try to negotiate a lower minimum order requirement: Factories and suppliers are under no obligation to “meet you halfway” so to speak, but in many cases an adept negotiator may be able to bargain for a reduction in MOQ by as much as 20 percent. suggest an offer for a lower quantity that accommodates their set-up and costs. Another Possible way is an offer to pay higher price: Offering the supplier, a deposit for a larger order, if they are willing to manufacture a smaller quantity of products at a time. Offering to pay a higher price per piece for a quantity under the MOQ. For example, 10 to 20%, may give the supplier an incentive to accept a small volume order. Take advice from Guided Imports who can manage the sourcing and manufacturing for you. Guided Imports offers an easy, safe and transparent way of obtaining an on-the-ground purchasing and sourcing department for a reasonable cost. There is no accurate method of lowering a supplier’s minimum order quantity. But by hiring an experienced, locally based and professional team, you can rest confirmed that you’re getting the best quality service for a fair price.  

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