The MOQ meaning may be an unfamiliar term for some people, so in this short article we’ll be defining what a MOQ is, why MOQ’s are important, why suppliers set MOQ’s, the advantages and disadvantages, how to meet and exceed the minimums, as well as how to negotiate them.
Stay tuned to the end of this article for a word of warning about MOQs so you can safeguard yourself from potential consequences.
Let’s jump into it.
Video Overview of MOQ
MOQ Meaning (Minimum Order Quantity)
MOQ stands for “Minimum Order Quantity” and refers to the least amount of products or units that a supplier is willing to produce at one time. MOQs are set by suppliers to cover their cost of production and ensure that they make a profit off of each production run.
MOQs are sometimes negotiable, within reason, but it’s up to a business to be able to meet a supplier’s MOQs or negotiate a reasonable MOQ in order to do business with them.
MOQs differ from supplier to supplier. Some suppliers will have large MOQs such as 100,000 units, other suppliers may have low MOQs such as 100 units. Occasionally, suppliers that produce custom orders or bespoke products may even have MOQs as low as 1 unit.
What is MOQ
MOQ is a supplier’s Minimum Order Quantity which is defined by the minimum amount of units they’re willing to produce (or sell) at one time. MOQs are most often defined by the amount of units produced in a production run, such as 100 units or 10,000 units, for example, but sometimes MOQs can be defined by currencies as well, such as $1000 or $10,000 of product.
MOQ is calculated by each supplier independently and depends on what it costs them to produce each unit. MOQs cover the cost, effort and energy it takes to produce a production run and ensures that the supplier will be able to earn a profit as well.
Why MOQs are Important
MOQs are extremely important for suppliers because it determines which businesses they’re willing and able to do business with. By setting MOQs, suppliers can easily communicate with businesses how many units it takes for them to be able to work together.
Some businesses operate on a small level and need a very low amount of units produced. These businesses need to find a supplier that can comfortably match their low MOQ requirements. Other businesses operate on a large scale and need hundreds of thousands of units produced. These businesses need to make sure they find a supplier that can meet their demand and have the materials, machinery and personnel available to product the amount of units they need.
Why Suppliers Operate with MOQs
Suppliers set Minimum Order Quantities because it costs them a certain about of money to produce a production run, and the MOQ they set ensures that they’re able to cover all the costs of production, plus make profit. If suppliers were to produce fewer units than their MOQ they may not be able to cover the cost of their production, or make a profit.
Another reason why suppliers set MOQs is because the amount that they set may actually be the fewest amount of units they can produce in one single production run. Since manufacturers produce items in bulk, they purchase their materials in bulk as well. It may not be time or cost effective for them to set up their materials and run their machinery unless they’re guaranteed to be compensated for a certain amount of units their production run produces. Because of this, they set their MOQ to match what it’s worth for them to set up a production run both time and cost wise.
Advantages & Disadvantages of MOQs
The biggest advantage of MOQs is that they give you the best possible price per unit available. Oftentimes, the more in bulk you buy from a supplier, the more it drives down the cost of each unit. This means you’ll be paying less per unit that gets produced so you can maximize the profit you earn when you actually sell that product.
The biggest disadvantage of MOQs is the upfront cost required to be able to get your units produced. For example, 1000 units at $10 per unit means that the production run will cost $10,000 upfront, which, if you’re a new business may be intimidating or impossible to meet. This cost also doesn’t cover other costs related to doing business with your supplier such as the cost of shipping the products to you once the production run is over, or the necessary paperwork required to get the products through customs, etc. It’s just the cost of actually producing the items.
How to Meet MOQs
If you’re just starting out as a new business, meeting MOQs can be frustrating. Oftentimes as a new business you only need a small amount of units produced and can’t meet the MOQ requirements of many manufacturers. If this is the situation you’re in, your best option is to communicate very directly with manufacturers about the amount of units you need and what you can afford. If you can’t meet a supplier’s MOQ requirements and they’re not able to negotiate down to the amount of units you need, then your best option is to move on and find a different supplier with MOQs that fit your requirements.
There are plenty of suppliers who offer low, or no, MOQs, it’s just a matter of finding those suppliers. Do lots of research and investigate into the depths of Google and supplier directories to find suppliers who can meet your MOQ requirements. Depending on what products you’re looking for, another option may be to source wholesale products that you can purchase unit-by-unit so you don’t actually have any MOQs to meet. AliExpress is a great resource for this.
This may be a less cost-friendly option in the long run but it means that you can purchase products as and when you need them instead of buying lots of products upfront that you then have to then figure out how to sell.
Check out our supplier directories to find suppliers with MOQs you can meet:
- Manufacturers Directory: The manufacturers listed in this directory have a diverse range of MOQ requirements ranging from one unit to thousands of units.
- Wholesale Directory: The wholesalers listed in this directory also have a diverse range of MOQ requirements, ranging from one unit to thousands of units.
- Dropshippers Directory: The dropshippers in this directory are a great option for business’ who are having trouble meeting MOQs as they often don’t have MOQs at all. If you’re new to dropshipping, check out our Guide to Dropshipping to learn more about dropshipping as a business model and why it’s so advantageous for new businesses.
- Clothing Manufacturers Directory: This directory is tailored specifically to help businesses looking to start a clothing line find the right suppliers, and it features clothing manufacturers with MOQs as low as one unit and as high as the hundreds of thousands of units.
MOQs are set by suppliers to define the minimum amount of units they’re able to produce at one time, but that’s just their minimum. If you want to produce more units than a supplier’s set MOQs, usually it will be no problem for the supplier to accommodate your requirements.
Communicate exactly how many units you’re interested in producing with each supplier you’re considering working with to make sure they have the materials, equipment and personnel to make your production run happen. Depending on the supplier, they may have a maximum amount of units they can produce at one time if they’re not a large factory, so make sure they have the resources to complete your production run if you want to produce more than their MOQ.
How to Negotiate MOQs
If you’re having difficulties meeting supplier MOQs, these tips may help you out:
- Pay the MOQ price but ask for the specific number of items you need. This option won’t save you money, you’ll still have to pay the full price of the supplier’s MOQ upfront, but you’ll get your preferred amount of units which can save you from managing inventory you don’t want or having more products than you’re able to sell. With the leftover inventory that the supplier produces you can tell them to do what they want with it (they can sell it, offload it to a wholesaler, keep it, or throw it away). This option may not make sense for every business, but it may be worth keeping in mind.
- If you’re having trouble meeting a supplier’s MOQ because you can’t store that amount of inventory at one time, you can’t pay for it all upfront, or you just don’t need that amount of inventory all at once, see if the manufacturer will produce the entire production run and give you half of the products first and then the rest in a few months. Not all manufacturers may be open to this idea, some may not have the storage space for it, but others may be willing to help you if they know you’re serious and you’ll become a regular customer of theirs.
- See if there’s a lower quality material that can be substituted for the materials they would originally use so you can drive the price of production down, and thus, the amount of the MOQ.
- This is less of a negotiation tactic and more of a strategy on how to meet MOQs if you don’t have the budget available to meet a MOQ upfront. Crowdfunding and selling pre-orders is one of the best ways to acquire funding for your products upfront so you can meet the MOQ of your supplier without having to fork over the cash straight from your own pocket, and it means that you’ll order the appropriate amount of product that you have demand for. Orchestrating successful crowdfunding campaigns like those on Kickstarter or Indiegogo takes a lot of effort and isn’t for the non-serious or unprepared business person, so make sure you have the know-how and resources to be able to pull this off for it to be a successful means to meet MOQ requirements.
A Word of Warning
It may be tempting to drive supplier’s down to the lowest MOQ they’re willing to go, and some suppliers may want your business so much that they’re willing to drive down their MOQs just to keep you as a customer, but this may come at a cost to you. While low MOQs may seem like a great situation for you, it’s very important to consider the potential consequences:
- By driving down supplier MOQs too low, you may force suppliers to compromise on the quality of the products they produce. In an effort to meet the low MOQs while covering the cost of production, they may use the lowest quality materials so they can still afford to complete the production run and make a profit. This can make your products seem low-quality or make them less durable.
- If you drive down the MOQs too far and it cuts into the supplier’s profit, they may resent doing business with you which may make them less likely to work with you in the future, or else they may just not prioritize your business over other clients. Remember that suppliers also need to make a profit and MOQs are put in place to cover their own costs, so try to be understanding of that, even if it’s less favourable for you in some ways. Relationships in business are paramount, so compromising your relationship with your supplier because of MOQs may come with more consequences in the long run, so take that into consideration.
MOQs are put in place for a reason, so it’s important that you abide by them and negotiate reasonably with suppliers if you do feel that you need to negotiate. While it may be frustrating for you to meet MOQs, or flat out impossible if you’re just starting your business, remember that MOQs are put in place by suppliers to cover their own costs of doing business, so if you can’t meet a supplier’s MOQs then you need to find a different supplier or make other adjustments. In any case, find a supplier’s MOQ which you are able to meet, and if there’s none, try sourcing your products through wholesale or dropshipping so you can purchase products one-by-one, as you need them.
MOQ ni neno ambalo watu wengi hawajui, lakini katika makala hii tutakuelezea kwa nini MOQ ni muhimu, kwa nini wauzaji huweka MOQ, faida na hasara, jinsi ya kukutana na kuzidi kiwango cha chini, na pia jinsi ya kujadili. Kuendelea kusubiri kwa ajili ya mwisho wa makala hii kwa neno la onyo kuhusu MOQs ili uweze kujilinda kutoka matokeo ya uwezekano. Hebu kuruka ndani yake. MOQ (kiwango cha chini cha agizo) ni kifupi cha kiwango cha chini cha agizo na inahusu kiwango cha chini cha bidhaa au vitengo ambavyo muuzaji yuko tayari kuzalisha kwa wakati mmoja. MOQs ni kuweka na wauzaji ili kufunika gharama zao za uzalishaji na kuhakikisha kwamba wao kufanya faida nje ya kila uzalishaji kukimbia. MOQs ni mara kwa mara negotiable, ndani ya sababu, lakini ni juu ya biashara kuwa na uwezo wa kukutana na MOQs muuzaji au kujadili MOQ busara ili kufanya biashara nao. MOQs hutofautiana kutoka kwa muuzaji hadi muuzaji. Wauzaji wengine wanaweza kuwa na MOQ kubwa kama vile 100,000, na wengine wanaweza kuwa na MOQ ya chini kama vile 100 Kwa mfano, wauzaji wa bidhaa za kawaida au bidhaa za kawaida wanaweza kuwa na MOQ ya chini ya 1 kitengo. MOQ ni kiwango cha chini cha agizo la muuzaji, ambayo hufafanuliwa na kiwango cha chini cha vitengo wanavyotaka kutengeneza (au kuuza) kwa wakati mmoja. MOQs mara nyingi hufafanuliwa na idadi ya vitengo vilivyotengenezwa katika mzunguko wa uzalishaji, kama vile vitengo 100 au 10,000, kwa mfano, lakini wakati mwingine MOQs zinaweza kufafanuliwa na sarafu pia, kama vile $ 1,000 au $ 10,000 ya bidhaa. MOQ ni moja ya viwango vya juu vya utengenezaji wa bidhaa, na inategemea gharama za utengenezaji wa kila kiwanda. MOQs hufunika gharama, juhudi na nishati inayohitajika kutengeneza mzunguko wa uzalishaji na kuhakikisha kwamba muuzaji ataweza kupata faida pia. Kwa nini MOQ ni muhimu MOQ ni muhimu sana kwa wauzaji kwa sababu huamua ni biashara zipi wanazotaka na wana uwezo wa kufanya biashara nazo. Kwa kuweka MOQs, wauzaji wanaweza kwa urahisi kuwasiliana na biashara ni vitengo vingapi vinachohitajika ili waweze kufanya kazi pamoja. Baadhi ya biashara kufanya kazi katika ngazi ndogo na haja ya kiasi kidogo sana ya vitengo zinazozalishwa. Kampuni hizi zinahitaji kupata muuzaji anayeweza kukidhi mahitaji yao ya chini ya MOQ. Biashara nyingine hufanya kazi kwa kiwango kikubwa na zinahitaji mamia ya maelfu ya vitengo vilivyotengenezwa. Biashara hizi zinahitaji kuhakikisha kwamba wanapata muuzaji anayeweza kukidhi mahitaji yao na kuwa na vifaa, mashine na wafanyakazi wanaopatikana kuzalisha idadi ya vitengo wanavyohitaji. Kwa nini wauzaji hufanya kazi na MOQs: Wauzaji huweka Kiwango cha Chini cha Utaratibu kwa sababu inagharimu pesa fulani kuzalisha mzunguko wa uzalishaji, na MOQ wanayoweka inahakikisha kuwa wanaweza kufunika gharama zote za uzalishaji, pamoja na kupata faida. Ikiwa wauzaji watazalisha vitengo vichache kuliko MOQ yao, huenda wasiweze kufunika gharama za uzalishaji wao au kupata faida. Sababu nyingine kwa nini wauzaji kuweka MOQs ni kwa sababu kiasi kwamba wao kuweka inaweza kweli kuwa kiasi kidogo ya vitengo wanaweza kuzalisha katika moja ya uzalishaji kukimbia. Kwa kuwa watengenezaji hutengeneza vitu vingi, wao pia hununua vifaa vyao vingi. Inaweza kuwa sio wakati au gharama ya ufanisi kwa wao kuanzisha vifaa vyao na kuendesha mashine zao isipokuwa wanahakikishiwa kulipwa kwa kiasi fulani cha vitengo vya uzalishaji wao. Kwa sababu hii, wao kuweka MOQ yao ili mechi nini ni thamani kwa ajili yao kuanzisha uzalishaji kukimbia wote wakati na gharama busara. Faida na hasara za MOQ: Faida kubwa ya MOQ ni kwamba inatoa bei bora ya kila kitengo. Mara nyingi, unaponunua bidhaa nyingi kutoka kwa muuzaji, inazidisha gharama ya kila kitengo. Hii ina maana utakuwa kulipa chini kwa kila kitengo kwamba anapata zinazozalishwa hivyo unaweza kuongeza faida wewe kupata wakati wewe kweli kuuza bidhaa hiyo. Hasara kubwa ya MOQs ni gharama ya awali inayohitajika ili kuweza kupata vitengo vyako vilivyotengenezwa. Kwa mfano, vitengo 1000 kwa $ 10 kwa kitengo inamaanisha kwamba uzalishaji wa kukimbia utagharimu $ 10,000 mapema, ambayo, ikiwa wewe ni biashara mpya inaweza kuwa ya kutisha au haiwezekani kukutana. Gharama hii pia haifai gharama nyingine zinazohusiana na kufanya biashara na muuzaji wako kama vile gharama ya usafirishaji wa bidhaa kwako mara tu uzalishaji umekwisha, au nyaraka muhimu zinazohitajika kupata bidhaa kupitia forodha, nk. Ni tu gharama ya kweli kuzalisha vitu. Jinsi ya Kukutana MOQs Kama wewe ni tu kuanzia nje kama biashara mpya, kukutana MOQs inaweza kuwa ya kukatisha tamaa. Mara nyingi kama biashara mpya unahitaji tu kiasi kidogo cha vitengo zinazozalishwa na haiwezi kukidhi mahitaji ya MOQ ya wazalishaji wengi. Kama hii ni hali wewe ni katika, chaguo lako bora ni kuwasiliana moja kwa moja sana na wazalishaji kuhusu kiasi cha vitengo unahitaji na nini unaweza kumudu. Kama wewe si kukidhi mahitaji ya MOQ ya muuzaji na wao si uwezo wa kujadili chini ya kiasi cha vitengo unahitaji, basi chaguo lako bora ni kwenda juu na kupata muuzaji tofauti na MOQs kwamba fit mahitaji yako. Kuna watoaji wengi ambao hutoa chini, au hakuna, MOQs, ni suala tu la kupata watoaji hao. Fanya utafiti na kuchunguza ndani ya Google na orodha za wauzaji ili kupata wauzaji ambao wanaweza kukidhi mahitaji yako ya MOQ. Kulingana na bidhaa gani unatafuta, chaguo jingine linaweza kuwa chanzo cha bidhaa za jumla ambazo unaweza kununua kitengo kwa kitengo ili kwa kweli usiwe na MOQ yoyote ya kukutana nayo. AliExpress ni chanzo kizuri cha habari. Hii inaweza kuwa chaguo la chini la gharama kwa muda mrefu lakini inamaanisha unaweza kununua bidhaa kama na wakati unahitaji badala ya kununua bidhaa nyingi mapema ambazo lazima ufanye jinsi ya kuuza. Angalia orodha yetu ya wauzaji ili kupata wauzaji na MOQs unaweza kukutana: - Mwongozo wa Watengenezaji: Watengenezaji waliotajwa katika orodha hii wana aina mbalimbali ya mahitaji ya MOQ kuanzia kitengo kimoja hadi maelfu ya vitengo. Kwa mfano, orodha ya jumla ya bidhaa za jumla, ambayo inaonyesha idadi ya bidhaa zilizopatikana, inaweza kuwa na kiwango cha juu cha mahitaji ya MOQ, kuanzia kwa bidhaa moja hadi maelfu ya bidhaa. - Dropshippers Directory: Dropshippers katika directory hii ni chaguo kubwa kwa ajili ya biashara ambao ni kuwa na matatizo ya kukutana MOQs kama wao mara nyingi hawana MOQs wakati wote. Kama wewe ni mpya kwa dropshipping, angalia yetu Mwongozo wa Dropshipping kujifunza zaidi kuhusu dropshipping kama mfano wa biashara na kwa nini ni faida sana kwa ajili ya biashara mpya. Mwongozo wa Watengenezaji wa Mavazi: Mwongozo huu umeboreshwa maalum kusaidia biashara zinazotafuta kuanza mstari wa mavazi kupata wauzaji sahihi, na ina watengenezaji wa mavazi na MOQs ya chini kama kitengo kimoja na juu kama mamia ya maelfu ya vitengo. MOQs ni kuweka na wauzaji kufafanua kiwango cha chini cha vitengo wao ni uwezo wa kuzalisha kwa wakati mmoja, lakini kwamba ni tu kiwango cha chini yao. Ikiwa unataka kuzalisha vitengo zaidi ya MOQs zilizowekwa na muuzaji, kwa kawaida haitakuwa na shida kwa muuzaji kukidhi mahitaji yako. Kuwasiliana hasa jinsi vitengo wengi wewe ni nia ya kuzalisha na kila muuzaji wewe ni kuzingatia kufanya kazi na kuhakikisha wana vifaa, vifaa na wafanyakazi kufanya uzalishaji wako kukimbia kutokea. Kulingana na muuzaji, wanaweza kuwa na kiwango cha juu cha vitengo wanavyoweza kuzalisha kwa wakati mmoja ikiwa sio kiwanda kikubwa, kwa hivyo hakikisha wana rasilimali za kukamilisha mzunguko wako wa uzalishaji ikiwa unataka kuzalisha zaidi ya MOQ yao. Jinsi ya kujadili MOQ: Ikiwa una matatizo ya kukutana na MOQ ya muuzaji, vidokezo hivi vinaweza kukusaidia: - Lipa bei ya MOQ lakini uliza idadi maalum ya vitu unavyohitaji. Chaguo hili halitakuokoa pesa, bado utalazimika kulipa bei kamili ya MOQ ya muuzaji mapema, lakini utapata idadi yako ya vipengele ambavyo vinaweza kukuokoa kutoka kwa kusimamia hesabu ambayo hutaki au kuwa na bidhaa zaidi kuliko unavyoweza kuuza. Kwa hifadhi iliyobaki ambayo muuzaji hutoa, unaweza kuwaambia wafanye kile wanachotaka nayo (waweza kuuza, kuipeleka kwa muuzaji, kuhifadhi, au kuitupa). Chaguo hili linaweza kuwa na maana kwa kila biashara, lakini inaweza kuwa na thamani ya kukumbuka. Kama una matatizo ya kukutana na MOQ ya muuzaji kwa sababu huwezi kuhifadhi kiasi hicho cha hifadhi kwa wakati mmoja, huwezi kulipa yote kwa mbele, au huna haja ya kiasi hicho cha hifadhi kwa mara moja, angalia kama mtengenezaji atatoa uzalishaji wote na kukupa nusu ya bidhaa kwanza na kisha wengine katika miezi michache. Si wazalishaji wote wanaweza kuwa wazi kwa wazo hili, baadhi ya inaweza kuwa na nafasi ya kuhifadhi kwa ajili yake, lakini wengine wanaweza kuwa tayari kukusaidia kama wanajua wewe ni mbaya na wewe utakuwa mteja wa kawaida wao. - Angalia kama kuna chini ya ubora wa vifaa ambayo inaweza kuwa badala ya vifaa wao awali kutumia hivyo unaweza kuendesha bei ya uzalishaji chini, na hivyo, kiasi cha MOQ. - Hii ni chini ya mbinu ya mazungumzo na zaidi ya mkakati juu ya jinsi ya kukutana MOQs kama huna bajeti inapatikana kukutana MOQ upfront. Crowdfunding na kuuza maagizo ya awali ni njia bora ya kupata fedha kwa ajili ya bidhaa yako upfront ili uweze kukutana na MOQ ya muuzaji wako bila kuwa na fork juu ya fedha moja kwa moja kutoka mfukoni yako mwenyewe, na ina maana kwamba wewe itabidi amri kiasi sahihi ya bidhaa kwamba una mahitaji ya. Kuandaa kampeni za crowdfunding kama vile Kickstarter au Indiegogo inachukua juhudi nyingi na sio kwa mtu wa biashara asiye na uzito au asiyejiandaa, kwa hivyo hakikisha una ujuzi na rasilimali za kuweza kuifanya kuwa njia ya mafanikio ya kukidhi mahitaji ya MOQ. "Hii inaweza kuwa na kuvutia kuendesha wauzaji chini ya MOQ ya chini zaidi wanayo tayari kwenda, na baadhi ya wauzaji wanaweza wanataka biashara yako sana kwamba wako tayari kuendesha chini ya MOQ zao tu ili kukuweka kama mteja, lakini hii inaweza kuja kwa gharama kwako. """ Wakati MOQs ya chini inaweza kuonekana kama hali kubwa kwa ajili yenu, ni muhimu sana kuzingatia matokeo ya uwezekano: - Kwa kuendesha chini MOQs wa wasambazaji chini sana, unaweza kulazimisha wauzaji kufanya makubaliano juu ya ubora wa bidhaa wanazozalisha. Kwa sababu ya mahitaji ya chini ya MOQ, kampuni inaweza kutumia vifaa vya hali ya chini ili kuweza kukamilisha uzalishaji na kupata faida. Hii inaweza kufanya bidhaa zako kuonekana kuwa za hali ya chini au kuzifanya zisidumu. Kama wewe kuendesha chini MOQs mbali sana na ni kukata katika faida ya muuzaji, wanaweza kukasirika kufanya biashara na wewe ambayo inaweza kufanya yao chini ya uwezekano wa kufanya kazi na wewe katika siku zijazo, au vinginevyo wanaweza tu si kipaumbele biashara yako juu ya wateja wengine. Kumbuka kwamba wauzaji pia wanahitaji kupata faida na MOQs ni kuweka mahali ili kufunika gharama zao wenyewe, hivyo kujaribu kuwa na uelewa wa kwamba, hata kama ni chini ya mazuri kwa ajili yenu katika baadhi ya njia. Mahusiano ya kibiashara ni muhimu sana, kwa hivyo kuhatarisha uhusiano wako na muuzaji wako kwa sababu ya MOQs inaweza kuja na matokeo zaidi kwa muda mrefu, kwa hivyo fikiria hilo. MOQs ni kuweka mahali kwa sababu, hivyo ni muhimu kwamba wewe kufuata yao na kujadili busara na wauzaji kama wewe kufanya kuhisi kwamba unahitaji kujadili. Ingawa inaweza kuwa ya kukatisha tamaa kwa wewe kukutana na MOQs, au gorofa nje haiwezekani kama wewe ni tu kuanza biashara yako, kumbuka kwamba MOQs ni kuweka mahali na wauzaji ili kufunika gharama zao wenyewe za kufanya biashara, hivyo kama huwezi kukutana na MOQs ya muuzaji basi unahitaji kupata muuzaji tofauti au kufanya marekebisho mengine. Kwa vyovyote vile, tafuta MOQ ya muuzaji ambayo unaweza kukutana nayo, na ikiwa hakuna, jaribu kupata bidhaa zako kupitia rejareja au dropshipping ili uweze kununua bidhaa moja kwa moja, kama unavyohitaji.